Challenging Second Half: MIND ID Group Relies on Earnings Quality and Cash Flow
The Indonesian Mining Industry Holding MIND ID continues to strengthen its operational fundamentals and downstream integration to maintain growth amid increasingly challenging commodity market conditions in the second half of 2026. The positive performance of several MIND ID Group member companies throughout the first half of 2026 serves as capital for maintaining earnings quality, cash flow, and profit margins.
Investor attention is expected to begin shifting from merely pursuing high profit growth towards the ability of each listed company to maintain operational quality and create long-term value. With the market entering a normalisation phase, balance sheet health, capital expenditure discipline, and cash flow sustainability are becoming increasingly important.
“Profits that are no longer as high as during the supercycle period do not mean that company fundamentals are deteriorating, but rather that the market is once again assessing listed companies based on operational quality, efficiency, balance sheet health, and long-term growth prospects,” said Capital Market Observer and Director of Purwanto Asset Management Edwin Sebayang in his statement, quoted on Tuesday (25/8/2026).
A number of mining companies under MIND ID recorded positive performance throughout the first half of 2026. PT Vale Indonesia Tbk (INCO), for example, posted a profit for the period of 25.24 million US dollars.
PT Timah Tbk (TINS) recorded a stronger performance with net profit reaching Rp 2.71 trillion. This achievement has exceeded the full-year 2026 net profit target of Rp 1.61 trillion, reaching 169 percent of the company’s target.
“The prospects for INCO and TINS will be heavily influenced by global commodity price developments, production volume realisation, and the ability to maintain margins amid a more challenging commodity cycle,” said Edwin.
Amid the changing commodity cycle, each MIND ID listed company has different growth catalysts. PT Aneka Tambang Tbk (ANTM), for example, is still considered to have long-term prospects through strengthening mineral downstreaming and the development of an electric vehicle battery ecosystem.
ANTM is developing an integrated electric vehicle battery ecosystem in Indonesia together with PT Industri Baterai Indonesia (IBI) and HYD Investment Limited. The HYD consortium consists of Zhejiang Huayou Cobalt Co., Ltd., EVE Energy Co., Ltd., and PT Daaz Bara Lestari Tbk.
“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,” said Edwin.
The production facility in the battery project is located in Karawang, West Java, and is targeted to begin commercial operations in 2026. The total initial investment for the integrated battery project from upstream to downstream reaches 5.9 billion US dollars, or approximately Rp 96.04 trillion, assuming an exchange rate of Rp 16,278 per US dollar.
The production capacity in the first phase is planned to be increased through expansion to at least 15 gigawatt hours (GWh). This capacity is estimated to be equivalent to meeting the needs of around 250,000 electric vehicle units.