Revenue Down And Facing KLHK Sanctions, RMKE Reveals Strategy

JAKARTA - PT RMK Energy Tbk (RMKE) announced a decline in revenue due to coal price corrections in 2023.

In the third quarter, RMKE recorded a decrease in operating income by 3.4 percent yoy and earned IDR 1.8 trillion. This amount is far from the company's target of aiming for revenue of IDR 3.2 trillion by the end of 2023.

RMKE Finance Director Vincent Saputra said his party had several options to return to increasing its revenue by the end of this year.

"Indeed, the correction in commodity prices has quite an effect on us in terms of the coal sales segment," he said at an online press conference, Thursday, November 2.

The steps taken by RMKE include continuing to focus on the coal sales segment but still optimizing the side of coal budget services as has been done by the company so far.

Just so you know, RMKE's operating income from services grew by 59.1 percent yoy to Rp620.5 billion in the third quarter.

Despite the normalization of coal prices, Vincent believes his company can achieve the target set by the company at the beginning of the year.

Vincent added that the main challenge for RMKE was the reduction in coal prices, but the completion of administrative sanctions from the Ministry of Environment and Forestry (KLHK) due to air pollution from coal dust.

"Yang memang tantangan utama kita bukan di normalisasi harga, tapi untuk menyelesaikan sanksi administrasi sehingga operasi kami bisa kembali normal," beber Vincent.

He said that the target for unloading trains, barge cargo and in-house coal production was still not optimal because they were affected by the process of fulfilling administrative sanctions for environmental pollution to the Ministry of Environment and Forestry, but the Company was optimistic that it could pursue the 2023 target for the remainder of the year because the Company is currently in the process of finalizing the fulfillment of administrative sanctions and focusing on fixing and controlling environmental pollution.

"Indeed, that is what we are trying to solve in the near future. Once that is resolved, we hope that our Rp3.2 trillion target can be achieved this year," concluded Vincent.