Indonesia’s Bukit Asam Pays Dividend US$58M, Appoints New CEO

PT Bukit Asam Tbk (PTBA) decided to pay a cash dividends Rp835 billion (US$57.59 million), equal to 35 percent of last year' net profit Rp2.4 trillion - Photo: Special

JAKARTA (TheInsiderStories) – Coal miner, PT Bukit Asam Tbk (PTBA) decided to pay a cash dividends Rp835 billion (US$57.59 million), equal to 35 percent of last year’ net profit Rp2.4 trillion. The shareholders also approved the appointment of new CEO, Suryo Eko Hadianto, to replaced Arviyan Arifin in the extraordinary meeting held on Monday (04/05).

Formerly, he was the director of PT Indonesia Asahan Inalum (MIND-ID). He was born in Sleman, 22 April 1966 and earned a bachelor degree from Gadjah Mada University and took a master program in Mercubuana University.

Earlier, the management has announced prepared an investment Rp2 trillion in this year to support various business expansion and new businesses. Bukit Asam plans to develop more downstream projects in the future. One of the projects will start operating in 2022 is the largest mine-mouth power plant in Tanjung Enim, South Sumatera, with total capacity of 1,200 megawatts (MW).

The issuer has potential to earned an income around $300 million from the downstream products. The mining firm also has a coal gasification projects to be built in late 2021 or early 2022 with a construction period of four years. In 2025, the gasification of coal into methyl ether (DME) collaborating with American-based Air Products and Chemical Inc., and energy producer, PT Pertamina, can be enjoyed by Indonesian people.

One project, which is located in Tanjung Enim will process 1.4 million tones of DME and targeting the commercial operation date in the second quarter of 2024. In addition, Bukit Asam will also plans to increase its coal transportation facilities at the Tanjung Enim – Kertapati and Tanjung Enim – Tarahan railways, which are targeted to operate commercially in the third quarter of 2021. Both are expecting to transports 32 million tones (MT) of coal per year.

The company also preparing a coal production project into activated carbon. This project is the result of collaboration with activated carbon producers and suppliers from Australia, Activated Carbon Technologies Pty. Ltd., which will also acted as an off-taker. The two companies have signed an agreement at the end of December 2020.

Bukit Asam will process 60,000 tones of coal and produce 12,000 tones of activated carbon per year from the new factory. The miner plans to build the factory in the Tanjung Enim Industrial Estate in this year and its hope that in 2023, the realization of the first shipment of activated carbon from Tanjung Enim to Australia can be realized.

Beside, the coal producer is in the process of developing two steam power plant projects in the Muara Enim and East Halmahera areas with total investment of $2.03 billion. The project is being built by PT Huadian Bukit Asam Power, a consortium between Bukit Asam and China Huadian Hongkong Company Ltd. This project requires an investment of $1.68billion and funded by Exim Bank of China.

In addition, Bukit Asam also collaborating with PT Antam Tbk (IDX: ANTM) to build the Feni power plant in East Halmahera, North Maluku. The power plant project which has a 3×60 megawatts (MW) power plant capacity and a 3×17 MW diesel power plant. This project requires an investment of $350 million, which can be funded by banks.

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com