The company managed to book a net profit of Rp 1.8 trillion, a 38% increase from Rp 1.3 trillion in the same period last year. The increase in net profit was driven by strong revenues in the reporting period, which stood at Rp 10.3 trillion, 14% higher than the Rp 9.0 trillion recorded in the previous year.
The company’s total assets also rose by 10% within only three months, from Rp 24.5 trillion on 31 March 2021 to Rp 27.0 trillion at the end of the first semester of 2021.
The strong performance came on the back of the global and national economic recovery that led to an increase in demand for coal. This resulted in a significant rise in coal prices, reaching US$ 134.7 per ton on 30 June 2021.
2021 Operational Performance
PTBA’s total coal production in the first half of 2021 was 13.3 million tons, with sales at 12.9 million tons. The company aims to increase its production from 25 million tons in 2020 to 30 million tons in 2021.
PTBA ensures that its mining operations have been running under strict health protocols, and as a result its production and sales activities have been carried out optimally and safely.
Progress of Development Projects
The issuance of Presidential Regulation No. 109/2020, which was signed by President Joko Widodo on November 17, 2020, marked the inclusion of two PTBA projects in the list of national strategic projects. The first one is the company’s coal gasification project and the second one is the Bukit Asam Coal-Based Industrial Estate (BACBIE), both located in Tanjung Enim, South Sumatra.
PTBA, Pertamina and Air Products & Chemicals Inc (APCI) have signed an amendment to the Dimethyl Eter (DME) Development Cooperation Agreement. The signing took place in Los Angeles, United States, and was witnessed by State-Owned Enterprises Minister Erick Thohir. At the same time, the DME Processing Agreement was also signed as part of the cooperation on the DME development.
This national strategic project will take place in Tanjung Enim for 20 years, bringing in foreign investment of US$2.1 billion, equal to Rp 30 trillion, from APCI. With the use of 6 million tons of coal per year, this project will be able to produce 1.4 million tons of DME annually in order to reduce LPG imports by 1 million ton per year and eventually improve the trade balance.
This cooperation has been part of PTBA’s new portfolio because, now, the company is not just selling coal, but also producing downstream products to increase the added value of coal.
Sumsel-8 Mine-Mouth Coal-Fired Power Plant (PLTU)
The Sumsel-8 mine-mouth PLTU, which will have a capacity of 2x620 megawatts (MW), is PTBA’s strategic project with a value of US$1.68 billion. This PLTU is part of the government’s 35,000 MW program and is developed by PTBA through PT Huadian Bukit Asam Power (HBAP) as the independent power producer (IPP).
PT HBAP is a consortium consisting of PTBA and China Huadian HongKong Company Ltd. The development progress of this PLTU, which will absorb 5.4 million tons of coal annually, reached 88.15% as of July 2021. The power plant is expected to commence full commercial operations in the first quarter of 2022.
Development of Solar Power Plants (PLTS)
The company has also started to expand its business to the new and renewable energy sector. The PLTS at the Soekarno-Hatta International Airport, developed in cooperation with PT Angkasa Pura II, commenced full operations on October 1, 2020.
PTBA plans to develop PLTS in the company’s ex-mining sites in Ombilin, West Sumatra, and Tanjung Enim, South Sumatra, each with a capacity of 200 MW. PTBA is now in talks with PLN to be the IPP and the PLTS is expected to begin operations in 2022.
Coal Transportation Development with Pelindo II
PTBA has signed a HoA with PT Pelabuhan Indonesia (Pelindo) II to develop the capacity to transport coal and/or other commodities through rivers and ports in South Sumatra. This partnership is aimed at supporting the development of South Sumatra’s economic corridor to make the region a “national energy barn”.
Coal Transportation Project
PTBA, in cooperation with PT Kereta Api Indonesia (KAI), is developing railways for coal transportation with a capacity of 72 million tons per year by 2026. The new railways are as follows:
- Tanjung Enim – Northward: The line is set to have a carrying capacity of 20 million tons per year. The new facility of Kramasan Port, which is built by PT KAI, is expected to operate in 2024. In addition, a railway with a capacity of 5 million tons per year has been successfully operated at the Kertapati Port since the first quarter of 2020. The capacity will be increased to 7 million tons per year by the fourth quarter of 2021.
- Tanjung Enim – Southward: For the Tarahan 1 line, the existing railway is developed to have a capacity of 25 million tons per year (commercial operation date in Q2 2021). As part of the company’s agreement with PLN to supply coal on a long-term basis, a new line will be developed to transport coal toward Perajen, which will replace the Tarahan 2 line. The new line will have a capacity of 20 million tons per year and is set to operate in the third quarter of 2026.