PT BUMI Resources, Tbk (BUMI) has announced that it contributes one-sixth of the coal used by PT Perusahaan Listrik Negara (PLN) as an energy source, making it one of the largest coal suppliers for power generation in Indonesia.

"Coal continues to play a significant role in ensuring the availability of affordable electricity in Indonesia. Within this framework, BUMI has made a considerable contribution, with its Domestic Market Obligation (DMO) for coal exceeding 25 percent," said BUMI's Director & Corporate Secretary, Dileep Srivastava, in a statement received in Jakarta on Friday.

Currently, most power plants worldwide still rely on coal as the cheapest fuel, particularly in the Asian region. Similarly, in Indonesia, the production of affordable electricity still requires coal as the primary energy source.

Dileep stated that through its subsidiaries, BUMI supplied approximately 21 to 22 million metric tons of coal for domestic needs in 2023, which accounted for about 28 percent of the company’s total production of 77.8 million metric tons for that year.

With these figures, BUMI contributes roughly one-sixth of PLN's coal requirements to power the nation's electricity. In the S1 2024, BUMI produced 37.7 million metric tons of coal, marking a 7 percent increase compared to the previous year’s 35.4 million metric tons.

It is worth noting that BUMI owns coal mining subsidiaries, including PT Kaltim Prima Coal (KPC) in East Kalimantan, PT Arutmin Indonesia in South Kalimantan, and PT Pendopo Energi Batubara in South Sumatra.

"As part of BUMI's contribution to the nation, we are committed to consistently maintaining and fulfilling domestic supply. In addition to other contributions such as taxes and royalties to state revenues, CSR (corporate social responsibility) activities in socio-economic empowerment of communities, and tangible steps for environmental sustainability continue to be our focus," Dileep explained.

Data from the Ministry of Energy and Mineral Resources (ESDM) shows that BUMI's two subsidiaries, PT Kaltim Prima Coal and PT Arutmin Indonesia, were among the top five companies with the largest DMO obligations supplying coal to PLN's power plants in 2023.