PEFINDO has assigned its idAA rating with stable outlook for PT Adaro Indonesia (AI)

(22 April 2026)--The rating reflects AI’s very strong competitive position as one of Indonesia’s largest thermal coal producers, as well as very strong operating management reflected in cost-efficient operations and disciplined production execution. The rating is further supported by AI’s very strong financial profile, characterized by robust cash flow generation, strong liquidity, and a conservative capital structure. The rating is constrained by AI’s concentrated business profile in thermal coal, which heightens exposure to energy transition risks and its exposure to commodity price volatility that may affect operating performance and cash flows during adverse market conditions.

The rating may be raised if AI is able to materially strengthen its business profile, particularly through diversification of revenue streams or enhancement of business sustainability, while maintaining very strong operating and financial metrics. Conversely, the rating may be under pressure if the Company experiences a sustained weakening in revenue or EBITDA, or if financial leverage increases materially beyond expectations, weakening its debt repayment capacity.

Established in November 1992, AI is a thermal coal mining company with annual production of around 50 million tons and annual sales volume of around 60 million tons, operating the Tutupan and Wara mines in Tanjung, South Kalimantan. The Company produces sub-bituminous coal marketed under the Envirocoal trademark and benefited from PT Adaro Andalan Indonesia Tbk's (AADI) integrated operation across the coal supply chain. As of December 31, 2025, AADI effectively owns 88.5% of the Company’s shares, while the remaining 11.5% is held by Electricity Generating Authority of Thailand International Company Limited. (ends)