Analyst: Mining sector attracts investors through value-added products
Capital market observer and Director of Purwanto Asset Management Edwin Sebayang said the mining sector, especially companies within the MIND ID holding, is increasingly attracting investors through the creation of value-added products.
“MIND ID is carrying out measured operational strengthening and consistently reinforcing the integration of the downstreaming ecosystem to support the creation of high value-added products in strengthening national economic sovereignty,” Edwin said in his statement in Jakarta on Wednesday.
The holding, he continued, needs to maintain growth, cash flow, and profit margins amid more challenging market conditions in the second half of 2026.
This is in line with the positive performance recorded by mining issuers under the MIND ID Group throughout the first half of 2026, amid commodity price dynamics and the transition of the global industrial ecosystem.
He cited PT Vale Indonesia Tbk (INCO), which posted a profit for the period of 25.24 million US dollars. Meanwhile, PT Timah Tbk (TINS) recorded a net profit of Rp2.71 trillion for the first half of 2026.
Furthermore, Edwin said state-owned mining issuers still have a number of attractive catalysts for investors to watch.
He cited INCO and TINS, whose share prices are considered to be heavily influenced by global commodity price developments, realised production volumes, and the companies’ ability to maintain profit margins.
“The prospects for INCO and TINS will be heavily influenced by global commodity price developments, realised production volumes, and the ability to maintain margins amid a more challenging commodity cycle,” Edwin said.
Meanwhile, Antam (ANTM) is considered to have strong long-term prospects through mineral downstreaming and the development of an electric vehicle battery ecosystem, while PT Bukit Asam (PTBA) remains attractive for investors seeking cash flow stability and dividends.
“I see ANTM as still having strong long-term catalysts through mineral downstreaming and the development of an electric vehicle battery ecosystem. PTBA remains attractive for investors seeking cash flow stability and dividends,” he said.
The construction of production facilities for the project is located in Karawang, West Java, and is targeted to begin commercial operations in 2026.
On the other hand, PTBA’s appeal to investors is supported by a relatively consistent track record of dividend distribution in recent years.
“Thus, investor focus in the second half of 2026 is likely to begin shifting from merely pursuing high profit growth,” Edwin said.
“Investors are expected to pay increasing attention to earnings quality, cash flow sustainability, capital expenditure discipline, and the ability of each issuer to create long-term value for shareholders,” he added.