Jakarta,-President Director of PT Adaro Minerals Indonesia Tbk (ADMR), Christian Ariano Rachmat said that the company will focus on increasing coal metallurgy production capacity and building an aluminum smelter project.

Therefore, during the 2024 Annual General Meeting of Shareholders (AGMS) at the Raffles Hotel, Jakarta on Tuesday, the company decided to use the net profit for the 2023 financial year of USD 441.02 million for mandatory reserve funds and retained earnings.

Of the net profit for the fiscal year 2023 of USD 441.02 million, the details are USD 4.41 million for mandatory reserve funds and USD 436.61 million for retained earnings.

"ADMR, why don't we distribute dividends, because later we need funds for aluminum imports we reduce. The business is good, so why do we have to import. So we are going there, coal metallurgy, aluminum is clear, it needs large funds," said Ariano also.

He explained that the Aluminum Plant construction project requires a large capital expenditure (capex) reaching 1 billion US dollars, not including the construction of Washing Plants and others that require large funds as well.

"In aluminum why do we want a big investment? because we import aluminum from various countries, so that if it reaches 1 million tons (imports), as much as 1 ton of aluminum (cost) 2,500 USD, Indonesia's deficit in aluminum has reached 2.5 billion US dollars," said Ariano.

For the coal metallurgy sector, he targets Indonesia to become a supplier of coal metallurgy at the global level, considering that currently the needs of coal metallurgy in Indonesia still depend on other countries, especially Australia.

"That's just aluminum, if all our products continue to be imported, bauxite exports are only 50 USD and aluminum imports are 2,500 US dollars, from 50 USD to 2,500 USD this is what foreigners enjoy," he also said.

In the AGMS, the company also revealed that it had realized all proceeds from the Initial Public Offering (IPO) worth IDR 342.76 billion for loans to its subsidiary, PT Maruwai Coal, to be used for capital expenditure.

In addition, IDR 296.32 billion to repay part of the principal on the loan to PT Adaro Energy Indonesia Tbk (ADRO).