Background

PT Tambang Batubara Bukit Asam (Persero) Tbk is the biggest coal mining company in Indonesia.

More than half its annual coal production is supplied to the government for Indonesian domestic coal-fired power plants; the rest is exported. All its mines are in Indonesia, and it has over three billion tonnes of mineable reserves.

Business Description

PTBA mines, produces and distributes coal, and supplies related to coal-powered services. It has 3.3bn tonnes of mineable reserves. Of about 24m tonnes of coal produced in 2017, 61% was supplied to the Indonesian gov’t for use in the domestic power industry, and 39% was exported.

The company has been boosting downstream coal-related businesses to reduce earnings volatility and support its coal mining business. It now has three power plants in operation and more planned and under development. The total capacity of current power plants is about 4,000 MW.

To resolve bottlenecks in the distribution of its mined coal, PTBA plans to increase its transportation capacity by developing single track railways into double track between the Tarahan and Kertapati ports, increasing capacity from 22m tonnes currently to 30m tonnes by 2020.

Also, in 2017, PTBA along with PT Kereta Api Indonesia, state-owned railway company, announced plans to further reduce bottlenecks and optimize coal transportation by building new railways to be completed in 2022 to Srengsem port in Lampung and Perajin port in South Sumatera.

Leadership

Agus Suhartono has served as the President Commissioner of Bukit Asam since 2013. He has an educational background in the military and has graduated from Lemhanas, Sesko TNI, Seskoal, and Akademi Angkatan Laut. Prior to becoming the President Commissioner of PTBA, Mr. Suhartono held the position of TNI Commander between 2010 to 2013.

Arviyian Arifin is the current President Director at Bukit Asam and has been in the position since 2016. Mr. Arifin graduated in Industrial Engineering from the Bandung Institute of Technology, Indonesia.