Bumi Resources Becomes One Of The Largest Coal Suppliers To PLN

Electricity (Photo: dock. Antara)

JAKARTA - PT BUMI Resources, Tbk (BUMI) stated that it contributed a sixth portion of coal used by PT Perusahaan Listrik Negara (PLN) as an energy source. This makes the issuer owned by Bakrie Group one of the coal suppliers with the largest volume for Indonesian power plants.

"Coal still plays a major role in the availability of electricity supply at low prices in Indonesia. In it, BUMI itself has a large contribution, in line with the domestic market Obligation (DMO) coverage of coal which exceeds 25 percent," said Director & Corporate Secretary of BUMI Dileep Srivastava quoting Antara.

Currently, most of the world's power plants still rely on coal as the cheapest fuel, especially in the Asian region. Likewise in Indonesia, electricity production at affordable prices still requires coal as the main energy source.

Dileep stated that through its subsidiary, BUMI's total supply of coal is around 21 to 22 million metric tons for domestic needs in 2023, or about 28 percent of the year's total production of 77.8 million metric tons.

With this figure, BUMI calculated to account for around 1/6 of PLN's coal needs in sufficient electricity for the state. In the first half of 2024, BUMI produced coal of 37.7 million metric tons, an increase of 7 percent compared to last year's 35.4 million metric tons.

For your information, BUMI has a subsidiary of a coal mining company, namely PT Kaltim Prima Coal (KPC) in East Kalimantan Province, PT Arutmin Indonesia (Arutmin) in South Kalimantan, and PT Pendopo Energi Batubara in South Sumatra.

"As part of BUMI's contribution to the country, we are committed to always maintaining and always fulfilling domestic supply. Of course, in addition to other forms of contributions such as taxes and royalties for state revenues, CSR (corporate social responsibility) activities in the socio-economic empowerment of the community, as well as concrete steps for environmental sustainability, we continue to work on," explained Dileep.

Data from the Ministry of Energy and Mineral Resources noted that two BUMI subsidiaries, namely PT Kaltim Prima Coal and PT Arutmin Indonesia, include the top five companies with DMO (domestic marketing obligation) obligations that supply coal with the largest volume for PLTU PLN in 2023.