PTBA Accelerates Non-Coal Business Expansion, Analysts Advise Caution

PT Bukit Asam Tbk (PTBA) has begun accelerating its business ventures outside of coal to identify new sources of growth. The state-owned mining issuer aims for non-coal businesses and their derivatives to contribute 20% of total revenue within the next three to four years.

Turino Yulianto, Director of Downstreaming and Product Diversification at Bukit Asam, stated that PTBA is preparing several projects to achieve this target. These projects include coal-to-dimethyl ether (DME), methanol, synthetic natural gas (SNG), potassium humate, and artificial graphite.

One of the primary focuses is the downstreaming of coal into DME. PTBA, alongside strategic partners, is currently conducting a joint feasibility study covering both upstream and downstream aspects. These DME projects have been included in the national strategic projects and are targeted to enter the construction phase by 2027.

PTBA is also expanding its renewable energy business by utilising post-mining assets and reclaimed land for solar power plant (PLTS) development. To date, PTBA’s total solar portfolio has reached 1.2 megawatts (MW), developed in collaboration with PT Pertamina New and Renewable Energy.

Despite the continuous push for diversification, coal remains PTBA’s core business. Turino emphasised that the company’s new business developments remain aligned with PTBA’s core competencies in the coal sector and its derivatives.