PT Delta Dunia Makmur Tbk ( DOID ) is preparing a number of strategies to seize business opportunities in 2023. DOID's management sees that the coal business opportunities in Indonesia this year are still quite promising. DOID's Head of Investor Relations , Regina Korompis explained, in general about a number of factors that make the prospects for the coal business in the country remain promising.
Regina explained, the geopolitical conditions of Russia and Ukraine, the current increase in Australian coal prices due to high rainfall which has hampered coal transportation, and the easing of restrictions in China will boost demand from China, as well as other countries, including India. "With the increase in prices and demand for coal from Indonesia, this will greatly help increase state revenue so that it can support government programs in recovering the post-pandemic economy," he explained to Kontan.co.id, Tuesday (10/1).
Seeing this potential, DOID Management remains optimistic about the growth of the mining industry in Indonesia. In order to seize this opportunity, the company has prepared a number of strategies to keep growing amidst the challenges that may arise in the future. Some of these strategies are developing the core business, namely Bukit Makmur Mandiri Utama (BUMA) and BUMA Australia, and strengthening strategic partnerships with existing partners. In line with this, his party also strengthens operational quality at all stages of mining.
DOID also diversifies or expands its business into business lines that are close to the core business such as technology, infrastructure and further development of business social activities. Apart from that, as another form of diversification, DOID has also penetrated into mining ownership. "Last November, we announced an increase in our strategic stake in Asiamet Resources Limited worth £2.649 million (equivalent to US$ 3 million), in working on the BKM copper mine project located in Central Kalimantan," he said.
Even though Regina has prepared various strategies and business focus this year, Regina did not provide an overview of the capital expenditure allocation for 2023. Launching the 2022 public expose report, last year DOID allocated a capital expenditure plan of US$ 150 million to US$ 200 million which was allocated for two things.
First, Maintenance Capex to replace heavy equipment that is no longer usable. Second, New Capex for growth ( growth ) when acquiring new customers or contracts. From the budget of US$ 150-US$ 200 million, an amount of US$ 60-US$ 70 million is Capex growth carried forward from the previous year.
