PT BA is likely to suffer drop in profit this year

State owned coal mining company PT Batubara Bukit Asam is likely to suffer a drop in profit this year due to a lower production and a problem in the transportation of the coal from its mining site in Tanjung Enim, South Sumatera and its transit terminal in Tarahan in Lampung, Sriwijaya Pos reported on Tuesday.

PT BA president RA Sunardi said that it was almost certain that the company would not be able to meet the profit target this year due to the decline in the company's profit performance especially within the last several months.

"The decline in the production and in the transportation problem could even cause a decline in this year's profit from about Rp 287.48 billion in 1999," he said during the break of the fast gathering in Palembang on Monday.

Sunardi said that in order to improve the profitability, the company would continue to improve efficiency and to upgrade the quality of its low-calorie coals and increase the transportation capacity from its mining site to the transit terminal in Tarahan. He said that the company would also build a power plant to benefit its low quality coal, which account for about 60 percent of its coal reserves.

According to Sunardi, the company was also currently negotiating the possible takeover of coal mining companies now under the management of the Indonesian Bank Restructuring Agency (IBRA) in a bid to improve the performance of the company. (*)