Mining Directory

Indonesia as the world's largest producer and exporter of coal began to be looked at by European countries after Russia cut off gas supplies to Europe. Of course, this is a good opportunity to increase exports amid soaring coal prices.

However, there are a number of challenges faced by Indonesia in meeting the demand for coal in the European market, including shipping costs, differences in the quality of coal produced by Indonesia, and market needs in Europe.

"The challenge for coal entrepreneurs today is to enter the European market where there are some specific criteria to be desired. The needs of the European market are medium to high type coal, while Indonesia produces medium to low type coal. We see this as an opportunity to improve our market, of course, while still considering the commitments that have been agreed with other buyers," said Djaya Bersama (MDB) Group Media Director Hans Manoe.

Facing these challenges, currently MDB with its subsidiaries PT Mifa Bersaudara (MIFA) and PT Bara Energi Lestari (BEL) will optimize existing coal production with a level of 3,400 GAR (Gross CV; AR).

To boost the quality and quantity of coal production, MDB Group emphasizes productivity and profitability through increasing production volumes and cost efficiency.

"As a professional in the coal sector, of course, cost efficiency is the key to a sustainable coal production process," said Hans.

Currently, MDB Group, together with its subsidiaries, is the only coal mining company operating in Aceh. It is not easy to operate in Aceh. Hans mentioned geographical challenges, contours, and soil structure. Not to mention the existence of a monsoon that can last for approximately four months of the year (May, June, July, August). Experience in facing these challenges ultimately increases the company's competitive advantage.

"This is also supported by the existence of a new format in MDB since 2021 which is a combination of two major forces in the business world. The goal of every company is what is known as Tripple P bottom line (people, planet, and profit). MDB in running its business always tries to put people and planet first, Profit will follow by itself," said Hans.

Recently, an Asian-level coal conference and exhibition was held, Coaltrans Asia 2022, in Nusa Dua, Bali, on September 18-20, 2022. This event is a meeting between entrepreneurs and coal industry market players, as well as the government as policy makers.

MDB Group views Coaltrans Asia 2022 as a means to mutually strengthen cooperation among business actors in the coal sector.

"The challenges of the coal industry in the future are getting bigger, including ESG and renewable energy. The Coaltrans Asia Forum helps strengthen business actors in this industry because consumers, producers, and governments can meet to synergize, collaborate, and coordinate," said Hans.

Source: https://www.medcom.id/ekonomi/bisnis/PNgw7Q8N-mdb-group-siapkan-strategi-tembus-pasar-batu-bara-eropa