This Is The Reason Of BUMI Mining Company Owned By Conglomerate Aburizal Bakrie Loses IDR 4.9 Trillion

Illustration. (Photo: Unsplash)

JAKARTA - PT Bumi Resources Tbk recorded significant losses over the past year. The decline in the performance of the company codenamed BUMI shares was due to the downward trend in coal selling prices.

Quoting data released by BUMI, Wednesday, May 19, BUMI's first quarter 2020 price of freight on board (FOB) coal is actually at the level of 49 US dollars per tonne. As for the second quarter of 2020, the FOB price fell to a level of 44.6 US dollars per ton.

And the decline in coal prices continued until the fourth quarter of last year to 41.2 US dollars per ton. Thus, the average FOB price throughout 2020 is only 44.2 US dollars per tonne.

This figure is down 14 percent compared to the previous year's 51.7 US dollars per ton. For the record, the FOB price is a combination of the FOB prices of the two BUMI subsidiaries, Kaltim Prima Coal (KPC) and Arutmin Indonesia.

The weakening of BUMI's performance is also because operational performance throughout 2020 is not as active as the previous year. The overburden removal carried out by BUMI last year decreased 5 percent annually to 626.3 million bank cubic meters (bcm).

From this activity, coal mined decreased 6 percent annually to 81.1 million ton. Coal sales also fell 7 percent on an annual basis to 81.5 million ton.

The weakening of FOB prices coupled with a decline in operational performance forced BUMI to record a decline in consolidated income of around 28.95 percent on an annual basis to 790.44 million US dollars.

BUMI even recorded a net loss of US$ 338.02 million (around IDR 4.9 trillion) over the past year. In fact, this mining company was still able to record a net profit of US$ 6.84 million in 2019.