Jakarta,- Bakrie Group and Salim Group coal issuer, PT Bumi Resources Tbk. (BUMI), stated that it is focusing on accelerating the diversification of downstream and non-coal projects amidst the US Presidential Election sentiment.

Bumi Resources Director, Dileep Srivastava said the company's business strategy is focused on diversifying downstream coal and non-coal projects. These projects include viable renewable energy projects with no plans to increase coal capacity.  

"BUMI has set a target to generate 30% of revenue from clean projects in the non-coal sector in the medium term," he said when contacted, Friday (26/7/2024). 

He continued that with the current economic-political situation, especially with the policies of the United States presidential candidate Donald Trump, who is paying attention to fossil energy, this will not change BUMI's plans.

"Ensuring the commercial viability of new projects in the downstream and non-coal sectors is our focus," he said.

Srivastava also said that government policies that support increasing the attractiveness of these projects will greatly help BUMI to accelerate the downstreaming and diversification process.

He said BUMI's production guidance has not changed this year, which is at 78 million tons to 82 million tons. He claimed the company is still on track to achieve the target until semester I/2024.

"I don't have exact figures for production in the first half of 2024, but it should be close to pro rata," he explained, Wednesday (17/7/2024). 

Dileep also said that the capital expenditure (capex) spent by BUMI throughout the first semester of 2024 is approaching the pro rata figure. According to him, BUMI estimates that capex absorption in 2024 can reach USD 80 million to USD 100 million.

Previously, BUMI Director, Andrew C. Beckham said BUMI would spend capex with an estimated USD 1 for one ton of coal. However, he continued, BUMI also conducted downstreaming, which made BUMI's investment greater.

"We are carrying out a coal downstream project to ammonia," he said recently.

Echoing Srivastava, Beckham also said there has been no revision to BUMI's coal production this year.

With these targets, Beckham hopes that BUMI's revenue and net profit will be better this year compared to last year.