Danantara Pushes for Reactivation of Ombilin Coal Mine in 2026, Expected to Absorb Thousand Workers

Jakarta – Chief Operating Officer Dony Oskaria of BPI Danantara stated that with potential labour absorption of approximately one thousand workers, the company is pushing for the reactivation of the Ombilin coal mine in Sawahlunto, West Sumatra, to proceed in the current year.

“Now in 2026,” Oskaria said in Jakarta on Wednesday, 25 February 2026.

Meanwhile, PT Bukit Asam Tbk (PTBA) stated that the process of reopening the mine remains at the stage of managing critical documentation, including licensing, environmental impact analysis (Amdal), and feasibility studies.

PTBA’s Operational Director Ilham Yacob confirmed that the company does plan to reactivate the Ombilin mine, which is currently undergoing licensing and Amdal processes as well as feasibility study.

“This documentation is very important; without it, activities cannot proceed. Once opened, the ecosystem will develop and generate positive economic impact,” Yacob said.

PTBA Corporate Secretary Eko Prayitno added that mining operations can only commence after all technical documents and government approvals are completed. These documents encompass technical aspects, cost analysis, operational readiness, workforce preparation, legality, regulation, and environmental considerations.

According to Prayitno, if the mine resumes operations—whether open-pit or underground mining—approximately one thousand workers would be absorbed. The open-pit reserve potential at Ombilin is estimated at around 2 million tonnes, whilst underground reserves are estimated at approximately 100 million tonnes.

Prayitno explained that the Ombilin mine is one of Indonesia’s oldest coal mines, with activity declining sharply over the past approximately 25 years. This decline had previously triggered concerns about Sawahlunto’s future.

Plans to reopen the mine have surfaced several times previously, including foreign investor interest, but have not been realised. Historically, the Ombilin coal deposit was discovered by Dutch researcher Willem Hendrik de Greve in 1867–1868 and subsequently documented further by RDM Verbeek.

The mine was officially opened by the Dutch East Indies government on 28 December 1891, accompanied by the development of critical infrastructure such as railway networks, Emmahaven Port (Telukbayur), and other industrial areas that spurred industrialisation in West Sumatra.