Sales and Revenue Grow as First Half Production Reaches 9.9 Million Tons
ICN News – PT Indo Tambangraya Megah Tbk (ITMG) has set an ambitious target to sustain its coal business growth amid commodity price volatility and operational challenges. In 2026, one of Indonesia’s major coal producers is targeting coal production of approximately 22.0–22.9 million tons, with 22.9 million tons representing the upper end of its full year production target.
The target is particularly significant as ITMG enters the second half of 2026 with relatively strong sales and financial performance. During the first half of 2026, the company produced 9.9 million tons of coal, slightly below the 10.4 million tons recorded in the same period last year. However, second-quarter production showed a significant improvement, reaching 5.3 million tons, up 13% from 4.7 million tons in the first quarter.
On the sales front, ITMG delivered stronger performance. Coal sales volume in the first half of 2026 reached 12.3 million tons, compared with 11.7 million tons in the same period of 2025. The increase in sales volume, combined with a higher Average Selling Price (ASP), which rose from approximately US$78 to US$81 per ton, helped support the company’s revenue growth.
ITMG recorded revenue of approximately US$1.0 billion in the first half of 2026, representing a 9% year-on-year increase from US$919 million in the first half of 2025. The performance demonstrates that despite slightly lower production, the company was able to increase revenue through a combination of higher sales volume and improved selling prices.
Net Profit Reaches US$110 Million
ITMG’s financial performance also showed positive momentum. During the first six months of 2026, the company posted net profit of approximately US$110 million, up around 17% from US$94 million in the first half of 2025. Net profit attributable to owners of the parent entity reached approximately US$106 million.
The increase in profitability came despite higher operating expenses. Cost of revenue increased by approximately 7% year-on-year, mainly due to higher mining and coal transportation costs. Other factors included a higher stripping ratio and increased fuel costs, which were influenced by global oil price developments.
ITMG also recorded royalty payments to the Indonesian government of approximately US$111 million in the first half of 2026, an increase of 7% compared with the same period last year.
Six Mining Operations Support Production Target
To achieve its 2026 production target, ITMG is relying on several key mining operations within its portfolio.
Based on the company’s production targets, PT Indominco Mandiri (IMM) is expected to contribute approximately 7.1 million tons, while PT Bharinto Ekatama (BEK) is expected to be one of the company’s largest contributors, with a target of approximately 8.0 million tons.
Other operations include PT Graha Panca Karsa (GPK) with a production target of approximately 2.7 million tons, PT Trubaindo Coal Mining (TCM) at around 3.5 million tons, PT Tepian Indah Sukses (TIS) at approximately 0.6 million tons, and PT Nusa Persada Resources (NPR) at around 0.3 million tons.
This production composition highlights the importance of ITMG’s key mining operations, particularly IMM and BEK, in maintaining stable production during the second half of the year.
Coal Sales Target Reaches Up to 27.5 Million Tons
Interestingly, ITMG’s 2026 sales target is significantly higher than its production target. The company is targeting coal sales of approximately 26.9–27.5 million tons for the full year. The gap between production and sales indicates that ITMG is not relying solely on coal produced from its own mining operations, but also benefits from third-party coal trading and supply activities. In the first half of 2026 alone, the company had already recorded sales of 12.3 million tons.
Therefore, the key challenge for ITMG in the second half of the year will not only be increasing production, but also ensuring smooth supply-chain operations, transportation, logistics and demand from both domestic and export markets.
Maintaining Momentum Amid Industry Challenges
ITMG’s first-half 2026 performance provides a positive foundation for pursuing its full-year targets. The 13% increase in second-quarter production compared with the previous quarter indicates that operational activities have begun to improve after first-quarter production stood at approximately 4.7 million tons.
Nevertheless, the company continues to face challenges, including higher mining and transportation costs as well as operational conditions that could affect the smooth movement of coal from mine sites to customers.
With a production target of up to 22.9 million tons, a sales target of up to 27.5 million tons, and first-half revenue already reaching approximately US$1 billion, ITMG remains well positioned as one of Indonesia’s major coal producers.
The company’s key focus in the second half of 2026 will be to optimize production from its core mining operations, maintain cost efficiency and capitalize on coal market conditions to achieve its annual production and sales targets.
If successfully achieved, these targets could make 2026 another important year for ITMG as the company seeks to strengthen its operational performance and maintain the resilience of its business fundamentals amid an increasingly dynamic global and domestic coal market.
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