Coal miner, PT Adaro Energy Tbk (IDX: ADRO) will distribute cash dividends up to US$250.13 million or 62 percent of 2019' net profit, said the company on Thursday (05/28) - Photo by the Company

JAKARTA (TheInsiderStories) – Coal miner, PT Adaro Energy Tbk (IDX: ADRO) will distribute cash dividends up to US$250.13 million or 62 percent of 2019′ net profit of $404.19 million, said the company on Thursday (05/28). While, Indonesia Stock Exchange provides a deadline until the end of October for other miner, PT Golden Energy Mines Tbk (IDX: GEMS) to meet the minimum limit of outstanding shares in the market.

Early January, the unit of Saratoga Capital has distributed $150.01 million as an interim dividend and the remaining will paid as a final cash dividend. Based on the company’ announcement, the shareholders will receive a cash dividend of $0.00782 per unit. The distribution of cash dividends is in rupiah, referring to Bank Indonesia’ middle rate, on June 19.

While, Vera Florida from the stock exchange office stated, the bourse given Golden Energy to take corporate action to meet the free float requirements until Oct. 31, 2020. So far, the regulator had suspended shares for 24 months.

Even though there are 50 million GEMS shares owned by the public with 300 shareholders, the percentage of public ownership is only 3 percent and does not meet the minimum free float percentage required at 7.5 percent. Therefore, the unit of Sinarmas Group intends to release as many as 294.12 million shares or 5 percent of enlarged and paid up capital.

Recently, the energy and mineral resources ministry sees the domestic coal demand could fall around 5 percent if the COVID-19 impact hit the global prices prolonged. This year, the government has targeted 155 million tons (MT) of coal sales for domestic market obligation (DMO) ini this year.

“If the COVID-19 pandemic continues, domestic coal demand is expected to fall by around 5 percent,” said the ministry in  a written statement released on April 13.

But, the government is optimistic that all domestic needs will be met from national production, despite a decline in demand as a result of slowing industrial operations due to the global pandemic. Based on the ministry data, the realization of DMO reached 31.53 MT of coal or 20 percent of the 2020′ targets.

It said, total national production in the first quarter amounting to 143 million tons. The DMO realization for stated-owned power producer, PT Perusahaan Listrik Negara recorded 25.6 MT of coal. The domestic coal needs for the general non-electricity sector reached 5.93 MT.

This year, the government has set a coal selling price for electricity of US$70 per ton and the selling price for other industries refers to the Reference Coal Price set by the government every month. The ministry stated, “April price is set at $65.77 per ton or down by $1.31 per ton from the previous month of $67.08 per ton.”

Even so, the government continues to ensure that coal demand for various domestic industries can be met from domestic production, even in the midst of a pandemic. This is because coal production is still in accordance with the established plan so that supply is maintained.

To help the coal mining industry, the government and Indonesian parliament has agreed on the new mining bill. The government also considering to changes the coal production quota in 2020 to improve the price of coal in the first semester. 

Initially, the government targeting the quota target of 530 MT of coal, but now the production has exceeded the figure around 550 MT of coal. The ministry has raised the quota and give the spaces of another 60 MT of coal tons or 12 percent to match the realization of 2019 production of 610 MT of coal.

EMR ministry has urged the coal producer to prioritize the fulfillment of domestic primary energy needs to support the government’ renewable program. Until October of 2019,  the realization of domestic coal utilization was only 95 MT from the target 128 MT.

The minister, Arifin Tasrif, also decided to continue the DMO of at least 25 percent of the coal production in 2020. These provisions are contained in Ministerial Decree Number 261 of 2019 concerning Fulfillment of Domestic Coal Needs for 2020.

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