Coal Prices Decline, PTBA Explains Company Steps to Maintain Profits

Coal (photo: dock. intermediate)

JAKARTA - PT Bukit Asam Tbk (PTBA) revealed a number of the company's steps to overcome the decline in coal prices that have occurred since 2022. It was recorded that coal prices have decreased by 30 percent since last year.

PTBA's Director of Finance and Risk Management, Farida Thamrin, admitted that if price declines continued, PTBA was preparing a number of steps, including increasing the company's export portion from last year's 35 to 38 percent to 40 percent in 2023.

"Previously it was 35-38 percent, in 2023 we will be above 40 percent. That's one of them," he said in the 2023 Public Expose Live which was held virtually, Monday, November 27.

Based on PTBA data, the export portion has reached 42 percent. Until the third quarter, the company recorded export sales of 11.2 million tons, an increase of 24 percent from the same period the previous year.

Farida continued, PTBA is also trying to maintain operational costs so that production cash costs can be maintained.

On the other hand, he said, PTBA is still waiting for government support with the realization of a Management Agency Partner (MIP) which is believed to be able to maintain domestic coal prices.

Regarding the formation of the MIP, previously the Minister of Energy and Mineral Resources, Arifin Tasrif, revealed that the progress of forming the MIP for the coal compensation fund had entered the finalization stage of the draft presidential regulation (Perpres).

He continued, a number of derivative regulations and supporting applications for this MIP are also being prepared, namely, the Minister of Finance Regulation (PMK) which regulates rates for the Coal Compensation Fund (DKB), Ministerial Regulation/Kepmen Junis on Procedures for Collection and Distribution of DKB.

Meanwhile, as of Quarter III 2023, PTBA recorded a net profit of IDR 3.8 trillion. In terms of revenue, PTBA posted IDR 27.7 trillion. The company's total assets as of September 30 2023 were IDR 36.0 trillion.