Eyeing European Market, Bukit Asam Supplying 140 Thousand MT Of Coal To Italy: Exploring Germany And Poland

PTBA President Director Arsal Ismail. (Photo: VOI/Mary Handayani)

JAKARTA - Europe is currently experiencing an energy crisis as a result of the protracted Russia-Ukraine war. Member of the Mining BUMN Holding MIND ID, PT Bukit Asam Tbk has also begun to seize export opportunities to several countries in Europe.

PTBA President Director Arsal Ismail said that Bukit Asam had signed a coal export contract to Italy amounting to 140 thousand metric tons (MT) during the first semester of 2022.

"What is now available to Italy is 140 thousand tons in the first semester. It's a new buyer," Arsal told reporters at the Raffles Hotel, Jakarta, Friday, August 26.

Not only in Italy, the issuer coded as PTBA shares is also targeting exports to Germany and Poland. However, both countries are still in the process, especially the price issue.

"Poland and Germany, we are still in the process, especially the issue of price and size or quantity. Because they ask for a year long term, we also don't dare because we are already bound by existing contracts," he explained.

Even so, Arsal did not deny that reaching the European market was constrained by distance. Where the distance to be traveled is very far and takes months. Therefore, PTBA is still focusing on demand in the Asian region.

"We still take advantage of the current condition of buyers, such as in India, China, in Thailand, Vietnam where there are more Asian countries. Because these are existing buyers and the travel route is also not as far as to Europe, which is quite a long journey," he said.

Arsal also explained that currently, the portion of domestic coal supply still dominates at 60 percent.

"And later on for domestic needs, we will focus on at least 60 percent for domestic, 40 percent we will try to carry out export activities," he said.