PTBA's Coal Business Unaffected by Drought, Here is Why

PT Bukit Asam Tbk (PTBA) has revealed that its coal logistics and transportation activities in Sumatra have not been disrupted by the prolonged dry season. This is because the company relies on railway transport to move coal from mines to ports.

As is well known, the El Niño phenomenon, which has triggered a long drought, has caused the water levels of several rivers to recede. This condition has the potential to hinder coal transportation via river routes, particularly in the Kalimantan region.

However, this situation does not pose a problem for PTBA. The President Director of PT Bukit Asam Tbk (PTBA), Bambang Ismawan, stated that the use of railways is one of the company’s advantages in maintaining smooth coal distribution.

“Yes, that is an advantage for PT Bukit Asam, one of our strengths. Others, especially in Kalimantan, might face issues because receding rivers could cause hindrances to coal shipments. For PT Bukit Asim, there is no issue,” he said during the CNBC Indonesia Closing Bell event on Monday (14/09/2026).

On the other hand, PTBA has established a strong partnership with PT Kereta Api Indonesia (KAI) to support coal transportation activities. Consequently, the company’s logistics operations do not depend on river water levels.

“We have two main routes; one large one is in Lampung at Tarahan Port, and parts of it are in Palembang at Kargo Kertapati, and other ports around Kertapati. That is what we have been using all this time,” he said.

PTBA produced 19.45 million tonnes of coal with a total sales volume reaching 21.1 million tonnes. Export sales grew by 5% to 10.33 million tonnes, with primary destinations including Vietnam, Bangladesh, Cambodia, India, and Thailand, while the domestic sales portion reached 51% or 10.77 million tonnes.

PTBA recorded a massive surge in net profit of 218% year-on-year to Rp 2.65 trillion in the first half of 2026. This profit growth was driven by operational recovery in the second quarter of 2026, as well as an increase in export sales volumes amidst the trend of rising global average coal prices. In terms of revenue, the company managed to book revenue of Rp 22.03 trillion in the first half of 2026, an 8% increase compared to the same period last year.

Coal Transportation in Kalimantan Affected

The Ministry of Energy and Mineral Resources (ESDM) has commented on the phenomenon of the Kapuas River drying up in West Kalimantan. The Kapuas River serves as a major coal distribution route via barges.

It has become a topic of public discussion that the Kapuas River is currently experiencing drought due to a long dry season over the past four months. The lack of rainfall has caused coal barges to become stuck, unable to navigate the river.

Responding to the situation, Deputy Minister of ESDM Yuliant Tanjung refuted claims that the disruption to barge operations was caused by production quota restrictions. He emphasised that the primary issue on the ground is purely a technical factor regarding the drastic drop in river depth.

“No, it is not because production is being limited; it is because there is no water to flow the barges. Yes (the river is dry), indeed…” he said when met during the 12th Indonesia EBTKE ConEx 2026 at Jiexpo, quoted on Friday (04/09/2026).

The decrease in river water levels has directly impacted mining logistics mobilisation, particularly in East Kalimantan and surrounding areas. Coal barges are reported to be stranded, forced to wait until water conditions allow for navigation to their destinations.

The phenomenon of the Kapuas River drying up has been widely discussed on social media. An Instagram post from the @atr.drone account showed a barge that has been stranded in the Kapuas River, Kalimantan, for nearly three months.

The receding water levels in the Kapuas River at Kampung Sungai Raya, Sekadau Hilir District, Sekadau Regency, West Kalimantan, present an unusual sight that has become a new attraction for the community. Sandbanks that are usually at the riverbed are now widely visible as water levels drop. This condition is actually being utilised by locals as a makeshift tourist spot for relaxing, gathering with families, and enjoying the sunset.