Jakarta,-PT Bukit Asam Tbk (PTBA) said that coal commodities will still be one of the main energy sources for electricity generation in Indonesia until 2060. 

PTBA President Director, Arsal Ismail, said that the coal industry is believed to still have bright prospects for the next few years, even in the midst of the energy transition trend and climate commitments to reduce carbon emissions which are the toughest challenges. 

"Referring to Indonesia's Grand National Energy Strategy (GSEN), coal is estimated to still be one of the main energy sources for electricity generation in Indonesia until 2060," said Arsal in the PTBA 2023 annual report, quoted on Wednesday (17/04).

He also said that global coal prices in 2023, which experienced a contraction, are projected to not change much in 2024. 

For your information, the decline in coal commodity prices had an impact on the company's financial performance where PTBA managed to record revenue of IDR 38.49 trillion or a 10% decrease from the previous year's IDR 42.65 trillion. The actual income was slightly below the target set at IDR 40.35 trillion. 

Meanwhile, in terms of costs, there is an increase in total costs, namely from IDR 28.03 trillion in 2022 to IDR 31.92 trillion in 2023. The increase in total costs is driven by several factors, including increases in production volume, transportation, sales, and changes in regulations related to tariffs and royalties. 

This condition has an impact on the correction of net profit in 2023, which will be IDR 6.11 trillion from the previous year of IDR 12.57 trillion. As well as corrections to total assets from IDR 45.36 trillion as of December 31, 2022 to IDR 38.77 trillion as of  December 31, 2023. 

"The company is increasing its operational targets in 2024, namely coal production of 41.34 million tons, transportation of 33.69 million tons and coal sales of 43.11 million tons," said Arsal. 

Apart from that, he added that PTBA has the potential to benefit from the implementation of Management Agency Partners (MIP), through compensation for contributions in meeting domestic coal needs to support national energy security.

"PTBA also targets 30% of the Company's revenue stream to come from the energy business by 2030. This includes diversification into New and Renewable Energy (EBT) generation as well as Carbon Management initiatives," he added. 

According to Arsal, this strategy is in line with the global trend to switch to more sustainable and environmentally friendly energy sources. Based on the preparation of prospects in PTBA's RJPP, which has considered various factors such as world macroeconomic projections, global energy mix maps, and Net Zero Emission (NZE) targets in world countries, especially coal-importing countries.