PT BUKIT ASAM : STRENGTHENING COAL, BUILDING LOGISTICS, PREPARING FOR THE NEXT PHASE OF GROWTH

English
7 September 2026

ICN News – From 47.19 Million Tonnes of Production in 2025 to IDR 22.03 Trillion in Revenue in H1 2026

PT Bukit Asam Tbk (PTBA) is entering a new phase of growth. While coal remains at the heart of its business, the company is increasingly strengthening the foundations that will determine its competitiveness in the years ahead from production and logistics to cost efficiency, downstream development, and energy diversification.

The company’s performance in 2025 reflected the challenging global coal market. However, the recovery in the first half of 2026 indicates that PTBA’s strategy is beginning to translate into stronger financial performance.

2025: Higher Production Amid Price Pressure

Throughout 2025, PTBA produced 47.19 million tonnes of coal, representing a 9% increase year-on-year. Coal sales reached 45.43 million tonnes, up 6%, Domestic sales accounted for approximately 54% of total sales, while exports contributed around 46%. PTBA’s major export destinations included Bangladesh, India, Vietnam, South Korea, and the Philippines.

Despite stronger production and sales volumes, PTBA’s financial performance was affected by weaker coal prices. Revenue stood at approximately IDR 42.65 trillion, relatively stable compared with the previous year.. However, lower selling prices put pressure on profitability. Net profit declined to approximately IDR 2.93 trillion, while EBITDA reached around IDR 6.08 trillion.

The decline was largely driven by weaker benchmark coal prices, with the Newcastle Index falling significantly during the year. This performance highlights an important reality for coal producers: volume growth alone is no longer sufficient. Cost efficiency, logistics capability and selling-price optimization are becoming increasingly critical to profitability.

H1 2026: Profitability Rebounds Strongly

The first half of 2026 brought a significant improvement, PTBA recorded revenue of approximately IDR 22.03 trillion, an increase of around 8% year-on-year. More importantly, net profit attributable to owners of the parent reached approximately IDR 2.65 trillion, representing a surge of around 218% year-on-year.

The improvement was supported by stronger coal prices, higher average selling prices and continued cost-efficiency initiatives. During the first six months of 2026, PTBA sold approximately 21.10 million tonnes of coal. Domestic sales accounted for around 51%, while exports contributed approximately 49%.

Production reached approximately 19.45 million tonnes, while coal transportation stood at around 18.15 million tonnes, including approximately 17.47 million tonnes transported by rail, The numbers demonstrate that PTBA’s recovery is not solely dependent on increasing production. The company is also focusing on improving the economics of every tonne it produces and sells.

Logistics: A Strategic Competitive Advantage

One of PTBA’s most important long-term initiatives is the development of its coal transportation infrastructure. The Tanjung Enim, Kramasan logistics project is designed to strengthen the company’s coal supply chain through the development of the Coal Handling Facility (CHF) and Train Loading Station (TLS) 6 and 7.

The project is expected to increase existing coal transportation capacity by approximately 20 million tonnes per year. To support the project, PTBA secured financing facilities of approximately IDR 3.56 trillion from a banking consortium led by major Indonesian banks.

This investment is strategically important because transportation capacity can become a bottleneck when mining production and market demand continue to increase. By strengthening its logistics infrastructure, PTBA is not simply investing in transportation assets. It is building a more integrated and efficient end-to-end coal supply chain. In the long run, better logistics can help reduce bottlenecks, improve delivery reliability and strengthen PTBA’s cost competitiveness.

2026 Capital Expenditure: Building the Growth Platform

For 2026, PTBA has allocated approximately IDR 3.64 trillion in capital expenditure (capex). A significant portion of the investment is directed toward the development of the Tanjung Enim–Kramasan coal transportation infrastructure.

During the first half of 2026, PTBA had already realized approximately IDR 1.09 trillion of its annual capex allocation. The company’s 2026 operational targets include coal production of approximately 49.55 million tonnes, sales of around 49.51 million tonnes, and coal transportation of approximately 41 million tonnes.

These targets show that PTBA is pursuing growth while simultaneously strengthening the infrastructure required to support that growth.

Beyond Mining: Preparing for the Next Energy Era

PTBA’s long term strategy is not limited to conventional coal mining. As part of the MIND ID Group, the company has increasingly positioned itself as an energy company with broader ambitions including coal downstreaming, renewable energy and environmental technologies.

The company has also explored opportunities to create higher value products from coal rather than relying solely on the traditional mining and selling model. This direction is strategically important as the global energy industry moves toward a more diversified and lower-carbon energy system.

For PTBA, the challenge is therefore not simply how much coal it can produce, but how much value it can create from its resources and capabilities.

From Volume to Value

PTBA’s performance during the first half of 2026 offers an important indication of this transformation. Revenue increased, while profitability improved significantly. At the same time, the company continued investing in logistics infrastructure and operational efficiency.

This combination suggests a shift in strategic priorities from simply pursuing higher production volumes toward building a more resilient and integrated business model. The company’s next challenge will be maintaining production growth while protecting margins, controlling costs, strengthening logistics and responding to fluctuations in global coal prices. At the same time, PTBA will need to continue developing new growth engines beyond traditional coal mining.

Building an Integrated Energy Platform

PT Bukit Asam is no longer simply a company focused on extracting and selling coal. Its strategy is increasingly centered on building an integrated energy and logistics platform, supported by mining assets, transportation infrastructure, operational efficiency and downstream opportunities.

The 2025 results demonstrated the impact of coal price volatility. The strong recovery in H1 2026, meanwhile, showed the potential of a more disciplined and integrated operating model. The direction is becoming increasingly clear: strengthen the coal business today, build the logistics backbone for tomorrow, and prepare new sources of value for the future. For PTBA, the next chapter of growth will not be measured solely by tonnes produced but increasingly by the value, efficiency and resilience created from every tonne.