Former CEO of PT Indonesia Asahan Inalum (MIND ID) Budi Gunadi Sadikin - Photo: Privacy

JAKARTA (TheInsiderStories) – Two Indonesian miner, PT Bukit Asam Tbk (IDX: PTBA) and PT Aneka Tambang Tbk (IDX: ANTM) plans to build a 2×45 megawatts (MW) steam power plant in East Halmahera, North Maluku, the official told the media on Monday (10/28). Both prepared investment with an investment of $185 million for the project.

Bukit Asam’ CEO Arviyan Arifin explained, the state-owned company would set up a joint venture company to run the project, with a 75 percent ownership stake for the coal miner. The project is also expected to require around 650 thousand coal consumption per year, he added.

In addition, the company also aimed to build a 2×620 MW steam power plant in Muara Enim, South Sumatra. For the first phase, the plant is targeted to be operational in 2021 and the second phase is expected to be completed in the following year.

According to finance director of the miner, Mega Satri said, to accelerate the completion of the plant, the company will inject capital of Rp400 billion (US$28.57 million). This investment is part of 2019′ capital expenditure funds, which is budgeted at Rp6.47 trillion.

To date, Bukit Asam has several steam power plants, which are located in Tanjung Enim with a capacity of 3×10 mw, in Tarahan 2×8 mw and in Banjarsari 2×110 mw.

In the third quarter (3Q) of 2019, the company booked a net profit of Rp3.1 trillion, dropped 21.08 percent compared to last year, which amounted to Rp3.92 trillion. The lower net profit was caused by the rise of the cost of revenue worth of Rp10.54 trillion.

“The biggest contribution of company’ cost came from transport costs as sales volumes and mining service costs increased,” he explained.

While, the operating revenues in the 3Q of 2019 were recorded at Rp16.3 trillion. This figure grew slightly from the achievements of the same period in 2018 of Rp16 trillion.

In detail, the contributions of revenue are from domestic market of 54 percent or Rp9.12 trillion and from the global market of 42 percent or Rp6.84 trillion. Then, from other activities such as electricity sales, briquettes, crude palm oil , hospital health services and rental services of 2 percent or Rp320 million.

In terms of volume, Bukit Asam‘ coal sales also experienced growth. During nine months of this year, unit of PT Indonesia Asahan Aluminium (MIND ID) sold 20.6 million tons of coal, up 10.7 percent from the same period in 2018.

Arifin asserted, the increase in sales was caused by the strategy to strengthen global markets such as India, Hong Kong, the Philippines and open new markets in Japan and South Korea. But, the commodity prices on the global market continued to weaken.

To that, he revealed, the average selling price of coal lowered from Rp841,655 per ton to Rp775,675 per ton. The increased sales achieved have not been able to compensate for the current low selling prices.

US$1: Rp14,000

Written by Staff Editor, Email: theInsiderstories@gmail.com