Indonesian Political, Business & Finance News

Fuel efficiency becomes key as mining contractors begin renewing heavy equipment

| | Source: REPUBLIKA Translated from Indonesian | Mining
Fuel efficiency becomes key as mining contractors begin renewing heavy equipment
Image: REPUBLIKA

Operational cost pressures are forcing mining players to seek ways to curb fuel consumption in the field. Heavy equipment that consumes diesel aggressively has become one of the main challenges amid global uncertainty and fluctuations in the mineral and coal sectors.

PT Andalan Artha Primanusa (Andalan) is among the companies accelerating the renewal of its heavy equipment fleet to boost the energy efficiency of mining operations. The move is seen as vital to maintaining productivity while reducing the company’s operating costs.

Gahari Christine, Chief Executive Officer of PT Andalan Artha Primanusa, said the mining industry is facing heavy challenges due to global geopolitical situations and rising field operating costs. Therefore, according to him, mining companies are required to be more adaptive in maintaining operational efficiency without compromising productivity.

“Renewing the fleet has proven to help improve fuel consumption efficiency,” Gahari said in a statement on Tuesday (19 May 2026).

In addition to replacing the fleet, the company is also becoming more selective in choosing new projects to safeguard business health amid the volatile industry. Amid these pressures, Andalan still recorded positive performance in 2025. The company posted an EBITDA margin of 39 percent, amounting to Rp145.4 billion, despite the mining industry having been shadowed by extreme weather and operational disruptions.

Not only in the coal sector, the company is also diversifying into nickel mining after securing a project in East Halmahera, North Maluku. This move aims to broaden the market while preserving business sustainability amid changes in the energy and mining industry.

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