State-controlled coal miner PT Bukit Asam Tbk (IDX: PTBA) is planning a series of expansion initiatives, including mine acquisitions, logistics upgrades, and downstream diversification, as part of its 2025–2029 strategic transformation plan.
The company is currently assessing several coal assets for acquisition, with negotiations ongoing, a company official said last week.
“We are focusing on resource and reserve management, market leadership, production growth, strengthening our energy business, and downstream development,” said Turino Yulianto, PTBA’s Director of Downstreaming and Product Diversification, during a media briefing on Thursday, as reported by Katadata.co.id.
PTBA is also investing in logistics infrastructure to address high transportation costs at its South Sumatra operations. The miner is constructing the Tanjung Enim–Kramasan rail line, expected to be completed by Q2 2026. Additional routes using state rail operator KAI’s network and a coal conveyor to the Musi River are also under consideration.
The company is advancing several downstream projects to convert coal into higher-value products, including dimethyl ether (DME), synthetic natural gas (SNG), methanol, ammonia, artificial graphite, and humic acid. The DME project is under commercial feasibility review, while the SNG project is being developed in partnership with state-controlled gas distribution firm PT Perusahaan Gas Negara Tbk to offset potential industrial gas shortages by 2028.
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PTBA is also exploring coal-to-humic acid for fertilizers in a pilot project with Gadjah Mada University, which is expected to be completed early next year.
Coal-to-artificial graphite is being positioned to supply Indonesia’s electric vehicle and nuclear energy sectors.
The company said coal-to-chemical conversions could significantly reduce logistics costs and boost profitability.
“If successful, downstreaming could multiply value up to fivefold compared to raw coal sales,” Turino said.
PTBA targets to increase coal production to 100 million tonnes per year, up from the current 40 million tonnes. The company estimates that converting coal to DME could generate 4.3 times the value of raw coal, while SNG could deliver up to 5.7 times more.
The miner is also preparing to build coal-fired power plants to supply MIND ID subsidiaries such as Antam and Timah, and is investing in solar-powered infrastructure for post-mining land use and agricultural needs.
Editing by Reiner Simanjunutak
