PT Bumi Resources Tbk (BUMI) welcomed the proposed adjustment to coal royalty fees put forward by the Ministry of Energy and Mineral Resources (ESDM).Ahmad Reza Widjaja, Vice President of Investor Relations and Chief Economist of Bumi Resources, stated that as the holder of a special mining business license (IUPK), the company stands to benefit from the revision of the royalty tariff.The company is now seeing a positive outcome with the potential reduction in the royalty tariff, after previously being subjected to the highest progressive royalty rate of 28%. He assured that the new regulation proposed by the Ministry of ESDM will not burden the company's operations."In principle, it will not overly burden the company's operations. Including for us at BUMI, we will benefit from the proposed new tariff. BUMI, which has been paying the highest royalty tariff, will receive a significant adjustment," Reza said when contacted on Friday (March 14, 2025).According to him, the proposed revision of the coal royalty fee has been eagerly awaited, especially for companies holding the IUPK (Special Mining Business License) for the continuation of the Generation 1 Coal Contract of Work (PKP2B)."The proposal is good, this is what players in the field have been waiting for. It seems that the Palace also agrees. However, the Ministry of Finance has yet to give the green light," he said.Bumi Resources targets coal production of 80 million tons in 2025. The company’s coal production increased year-on-year, from 56.2 million tons during the nine-month period in 2023 to 57.3 million tons during the January-September 2024 period. By the end of 2024, the company’s coal production is targeted to reach between 76 and 78 million tons.Last week, the Ministry of Energy and Mineral Resources (ESDM) presented a proposal to adjust royalty tariffs for mining commodities. For coal, the royalty rate is proposed to increase by 1% for HBA ≥ USD 90, with a maximum tariff of 13.5%.The Ministry of ESDM detailed the proposed changes in the coal royalty rates based on the type of contract for the existing special mining business licenses (IUPK) 28%, as follows:Calorific value ≤ 4,200: For HBA < USD 70/ton, the proposed royalty rate remains unchanged at 5%. For HBA between USD 70 and USD 90, the royalty rate remains at 6%. For HBA ≥ USD 90, the royalty rate will increase from 8% to 9%.Calorific value > 4,200 – 5,200: For HBA < USD 70/ton, the proposed royalty rate remains unchanged at 7%. For HBA between USD 70 and USD 90, the royalty rate remains at 8.5%. For HBA ≥ USD 90, the royalty rate will increase from 10.5% to 11.5%.Calorific value ≥ 5,200: For HBA < USD 70/ton, the proposed royalty rate remains unchanged at 9.5%. For HBA between USD 70 and USD 90, the royalty rate remains at 11.5%. For HBA ≥ USD 90, the royalty rate remains at the maximum rate of 13.5%.

PT Freeport Indonesia (PTFI) has revealed that the construction of its latest underground mine at Grasberg, Papua, called Kucing Liar, will require a capital expenditure (capex) of approximately USD 500 million per year.PTFI's President Director, Tony Wenas, stated that the development is planned to take place over the next seven to eight years. This mine will become the fourth mine operated by PTFI in the Grasberg area, following the Grasberg Block Cave, Deep Mill Level Zone (DMLZ), and Big Gossan."The development of Kucing Liar will require a capex of around US$500 million per year. This will be for the next seven to eight years," said Tony during a hearing with the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday (March 13, 2025).Tony explained that the production from Kucing Liar will replace the declining output from the DMLZ. This will help maintain a stable ore production of 240,000 tons per day.The Kucing Liar mine is expected to begin production in 2027, with a production potential of up to 7 billion tons of copper and 6 million ounces of gold per year until 2041.Currently, Freeport operates three mines: the Grasberg Block Cave, which produces about 140,000 tons of ore per day; the DMLZ, with about 70,000 tons per day; and Big Gossan, producing 7,000 tons per day.Previously, Freeport Indonesia's Vice President of Underground Engineering, Anton Priatna, emphasized that the company is continuing development to increase copper and gold production through the Kucing Liar underground mine."Kucing Liar will start mining in 2028. It is targeted to reach 90,000 tons per day," Anton explained when interviewed in Tembagapura, quoted on Thursday (December 11, 2024).Through this mine, Anton said, Freeport aims to achieve a concentrate ore production target of 220,000 to 230,000 tons per day."By 2029, production will increase through the Kucing Liar underground mine to 240,000 tons per day," he added.

PT Vale Indonesia Tbk. (INCO) stated that 2025 will be a crucial year for the company as it must complete three strategic projects. INCO's President Director, Febriany Eddy, mentioned that the completion of these projects includes a downstream processing plant."Our focus is on 2025. The years 2025 and 2026 are the most critical for PT Vale because we need to complete three strategic projects, which include the development of new mining operations in three provinces: Central Sulawesi, Southeast Sulawesi, and South Sulawesi, including the downstream plant," he said during a meeting with Commission VI at the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday (March 13).She elaborated on the latest updates regarding the three projects. These projects involve the construction of HPAL (High Pressure Acid Leaching) plants for the processing and refining of nickel ore to extract nickel and cobalt.First, the project in Central Sulawesi has already been built, including several of its facilities. This project is designed to be a carbon-neutral or net-zero emissions plant."Two-thirds of the energy will come from waste heat recovery, a third from solar panels, and the last part will use biomass to replace high-carbon materials. So, the groundwork is already visible there," she explained.The mining aspect has reached 70%, with a target completion by the second quarter of this year. The plant itself is targeted to be completed by mid-2026.Next, the Pomalaa plant in Southeast Sulawesi is targeted to complete the mining project by the first quarter of 2026, with the plant also scheduled to be finished at the same time."The progress is quite promising. As you saw, the autoclave is already finished. We are now upgrading the port to bring the equipment into Indonesia as quickly as possible," she stated.This project is a collaboration with Ford Motor Company from the USA and Huayou Metal Cobalt.Finally, the Sorowako Limonite HPAL project in South Sulawesi is designed with carbon emissions starting at 7 tons per ton, with a capacity of 60,000 tons of nickel. The project is expected to be completed by 2027 and is currently in the environmental impact assessment (AMDAL) application stage."In summary, the Pomalaa and Morowali plants must be completed by 2026, while the Sorowako Limonite project will be finished in 2027. The total investment in new mining and plants, along with partners, is around USD 9 billion," she said.He added that these projects will create jobs for about 5,000 people, with the target to increase this number to 12,000 by the end of the year."This is an extraordinary focus for us because we are building three projects simultaneously," she concluded.

President Director of PT Bukit Asam Tbk. (PTBA), Arsal Ismail, targets the completion of the Tanjung Enim-Kramasan coal transportation development by Q3 2026. Arsal mentioned that the development of this coal transportation project is one of the company's priority programs this year. "This coal transportation will increase our production capacity to 20 million metric tons," said Arsal during a hearing with the House of Representatives' Commission VI in Jakarta on Thursday (March 13, 2025). Arsal hopes that through this transportation expansion, the company can increase its long-term coal production capacity."In its implementation, we are partnering with PT KAI and PT KALOG, and our target is to complete it no later than Q3/2026," he said. Previously, Mirae Asset Sekuritas analyst Rizkia Darmawan, in his research, explained that PTBA has allocated a capital expenditure (capex) of IDR 7 trillion, significantly higher than the five-year average capex of IDR 2.5 trillion.According to Darmawan, this capital expenditure (capex) will be focused on expanding the railway network and coal downstream projects. He stated that the downstream project involves converting coal into anode sheets for electric vehicles. With cash reserves estimated at IDR 5.7 trillion by the end of 2024, Darmawan forecasts that PTBA will face challenges in financing dividends and capex in 2025. These challenges can be overcome, provided PTBA's revenue exceeds expectations in Q4 2024, capex is scheduled gradually or optimized, or additional funding is secured through debt or retained earnings.

PT Hartadinata Abadi Tbk (HRTA), PT Emas Murni Abadi (EMA), and PT Gorontalo Minerals (GM) have signed an agreement regarding a collaboration on gold refining and buying and selling activities. The total precious metal that can be refined and purchased amounts to 5,711 kg per year (Term Sheet).HRTA's Corporate Secretary, Ong Deny, revealed that the purpose of this collaboration is to develop each party's business activities. "This collaboration is expected to strengthen our position in the precious metals market and boost operational performance," he said to the Indonesia Stock Exchange, quoted on Wednesday (March 12, 2025).Ong stated that this transaction is not a material transaction, and the reporting obligation for this transaction is in accordance with the provisions of Article 13 paragraph (1) of OJK Regulation No. 17/POJK.04/2020 dated April 20, 2020, concerning Material Transactions and Business Activity Changes.Regarding the relationship between the parties involved, he explained that there is an affiliate relationship between the company and EMA, as EMA is a subsidiary of the company. In this transaction, there is no conflict of interest because there is no difference between the company's economic interests and those of the company's directors, major shareholders, or controlling shareholders that could harm the company.On the other hand, there is no affiliate relationship or conflict of interest between the company and GM based on the prevailing capital market regulations. "This transaction is an exempt affiliate transaction, and the reporting obligation for this transaction is carried out in accordance with the provisions of Article 6 paragraph (1) letter b of OJK Regulation No. 42/POJK.04/2020 dated July 1, 2020, concerning Affiliate Transactions and Conflicts of Interest," he emphasized.

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, confirmed that the coal downstreaming project through gasification into dimethyl ether (DME) will not only be developed in South Sumatra but also in Kalimantan.According to him, this plan has been discussed with President Prabowo Subianto during a limited meeting on Monday (March 10, 2025), as a follow-up to last week’s discussion regarding the first stage of downstreaming, which will be funded by the Investment Management Agency (BPI Danantara).“We will also directly develop DME as a substitute for [LPG] imports. This will be done alongside downstreaming in the fisheries, forestry, and plantation sectors,” he said at the State Palace after the meeting on Monday evening.“The locations will be in Sumatra and Kalimantan. One of the options is like that. Once it’s finalized, I will announce it again.”Bahlil stated that the coal gasification project into DME will utilize technology transfer from the United States (US) and China. It is known that these are the only two countries that have proven capabilities in developing coal gasification technology into DME in the world.He added that the coal downstreaming project will be technically discussed in the near future, including evaluating the technology that will be used.The idea of gasifying coal into DME under President Joko Widodo's administration was initially entrusted to PT Bukit Asam (Persero) Tbk (PTBA), with investment support from Air Products & Chemicals Inc. (APCI) from the United States (US).The project was originally planned for 20 years at the Bukit Asam Coal-Based Industrial Estate (BACBIE) located at the coal mine mouth in Tanjung Enim, South Sumatra. BACBIE would be situated at the same location as the South Sumatra 8 Mine Mouth Power Plant (PLTU).With foreign investment from APCI, the project was initially expected to produce about 1.4 million tons of DME per year, utilizing 6 million tons of coal annually.However, in mid-2023, APCI withdrew from the project to focus on developing blue hydrogen projects in the US. This departure led to the suspension of the coal gasification project’s continuation until now.Wave of CriticismThe project has faced significant criticism from various parties, mainly because it was considered uneconomical if intended to substitute LPG imports, which cost around IDR 7 trillion per year.From the mining business sector, the Executive Director of the Indonesian Mining Association (IMA), Hendra Sinadia, had previously stated that coal gasification into DME is a very expensive project."To convert coal into gas, for example into DME, there is a technology for it. We don't have that technology. Even in the world, the technology is limited, which is why it’s expensive," Hendra said when interviewed recently.“This should be a consideration for the government. If coal processing is required for companies, it will not be economical.”Hendra believes that if the government forces coal gasification into DME as a mandatory program for coal companies, there is a possibility that the substitute product will end up being more expensive than LPG.As a result, this could be counterproductive to the government's goal of developing DME to reduce LPG import costs and subsidies."If they sell DME, which is supposed to replace LPG, how will the price of DME be set? It won’t be easy if the price isn’t economical. Why would anyone buy DME? They’d rather buy LPG. Why would anyone invest in it if the price isn’t attractive?" Hendra said.Furthermore, the President's Special Advisor on Energy, Purnomo Yusgiantoro, stated that the netback of DME, as the final product of coal downstreaming, cannot compete with LPG, which is imported and subsidized by the government.It’s important to note that netback value refers to the highest price that consumers or buyers are willing to pay for a particular energy source.This issue led to APCI's withdrawal from the coal downstreaming project into DME by Bukit Asam, which left the LPG substitution mega-project stalled."There was a study as to why APCI pulled out from South Sumatra. They calculated the netback and found it couldn’t compete [with imported LPG]. Unless the coal price is US$15/ton. If it's US$15, then it's compatible with the price of LPG," Purnomo said during the Energy Transition Policy Review and Economic Growth Targets for the New Government event at the end of October.Purnomo emphasized that the comparison between LPG and DME—supposedly a replacement for LPG—was not at the same level or "apples to apples."National Economic LossFrom the economist’s perspective, the Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira Adhinegara, claimed—based on his institution's research—that the country could lose royal income amounting to Rp33.8 trillion per year if the coal gasification into DME project is pushed forward."What will be the result? The state stands to lose Rp33.8 trillion in royalty income per year. Why? Because coal downstreaming is given a 0% royalty incentive under the Omnibus Law [Cipta Kerja]," he said last weekend.Bhima believes that if Indonesia continues to push for the coal DME project, which is economically expensive and requires substantial investment, in the end, the government will likely have to provide fiscal incentives for companies investing in this project."The incentive would be a 0% royalty. That means a loss of Rp33.8 trillion per year in estimated revenue," he concluded.He also emphasized that coal downstreaming should not burden the state's finances with additional gas subsidy costs for the gasification process into DME.“The projects being funded should not result in additional burdens on the state budget, such as in the form of gas subsidies for the coal gasification [DME] project,” he said.In addition, he pointed out that the nature of coal mining in Indonesia, which is dominated by open-pit mining, is not suitable for gasification projects, which are considered more appropriate for closed-pit or underground mining.Meanwhile, Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno also urged the government to reconsider the prioritization of the coal downstreaming project, particularly coal gasification into DME, as the project faced challenges due to its perceived lack of economic feasibility in the previous administration.“Going forward, policymakers need to conduct further studies to ensure that the economics of DME products are cheaper than LPG. This review is essential to ensure that the coal downstreaming policy can reduce imports and strengthen national energy resilience,” said Eddy in his statement, quoted on Monday (March 10, 2025).In line with Purnomo's view, Eddy mentioned that if LPG imports are still cheaper than DME production, the government should consider increasing domestic LPG production capacity rather than building DME production facilities.“At least, this would significantly reduce LPG imports, which would help preserve foreign exchange,” said the Member of Commission XII of the DPR.Eddy explained that during his tenure as the head of Commission VII (which is a partner of the Ministry of Energy and Mineral Resources) from 2019 to 2024, coal downstreaming into DME faced a major challenge: the economic feasibility of the final product.The raw material used for DME production is coal with good calorific value, which leads to high production costs.“Because the coal feedstock used has a calorific value of 4,000–4,200 kcal, the raw material costs are relatively high. Therefore, when going through the production process into DME, the final price becomes expensive and even, in our calculations, it could be more expensive than importing LPG,” he explained.“The goal of producing DME is actually to substitute LPG use.”Eddy stressed that the economic challenges at the time caused the coal downstreaming policy to stall, ultimately leading two state-owned enterprises and one private company to withdraw from the project.“These economic challenges led two of our state-owned enterprises and one private national coal company to cancel their investment in the project with Air Products from the US, which is an expert in the coal downstreaming process,” said Eddy.

PT Sinar Terang Mandiri Tbk (MINE) became the 9th company to officially list its shares through an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX) on Monday (March 10, 2025). MINE opened at IDR 270, with a market capitalization reaching IDR 1.103 trillion. MINE's stock price surged by up to 25% from the initial price of IDR 216. According to Ivo Wangarry, the President Director of PT Sinar Terang Mandiri Tbk, the funds raised from the IPO will be used for the development of nickel mining operations. "The funds from this IPO will mostly be allocated for capital expenditures, particularly for the purchase of heavy equipment. This will help us capture greater opportunities in the nickel mining sector," said Ivo in his presentation at the IDX building in Jakarta on Monday (March 10, 2025).In addition to capital expenditures for heavy equipment, Ivo mentioned that the company will also be expanding into several mining projects in the future.In 2025, the company is running two mining projects: one in Halmahera, North Maluku, operated by PT Weda Bay Nickel, and another in Morowali, Central Sulawesi, through PT Hengjaya Mineralindo.According to the prospectus on the e-ipo.co.id website, MINE reported a year-on-year (YoY) revenue growth of 40.8% as of August 31, 2024, reaching IDR 1.36 trillion, compared to IDR 968.05 billion the previous year, on August 31, 2023. Meanwhile, the company’s net profit saw an increase of 278.3%, reaching IDR 165.65 billion, up from IDR 59.52 billion in the previous period.As of 10:30 AM WIB, MINE's stock continued to move, with transaction frequency reaching 1,938 times, a trading volume of 781,200 shares, and a transaction value of IDR 210.9 billion. Ivo claimed that MINE's IPO was oversubscribed by up to 25 times.

PT TBS Energi Utama Tbk (TOBA) has sold 90 percent of its coal mining business subsidiary shares.TOBA has indirectly divested PT Toba Bara Energi (TBAE), a subsidiary of PT Minahasa Cahaya Lestari (MCL), to PT Kalibiru Sulawesi Abadi (KSA).KSA is a company affiliated with Hilmi Panigoro and Benny Setiawan, who purchased two power plant assets from TOBA."We hereby announce that the MCL transaction has been completed based on the Share Transfer Deed dated March 5, 2025, which has been signed by TBAE as the Seller and KSA as the Buyer," wrote Alvin Firman Sunanda, Director of TBS Energi Utama, in a public disclosure on the Indonesia Stock Exchange (IDX) on Friday (March 7, 2025).The divestment of the subsidiary was approved by TOBA's shareholders during the Independent Shareholders General Meeting held on November 14, 2024.TOBA's management confirmed that this share transfer transaction will not negatively impact the company's operations, legal status, financial condition, or business continuity.On Friday (March 7, 2025), TOBA's shares rose 1.14 percent to a price of IDR 354, with a transaction value reaching IDR 3.39 billion.TOBA's trading volume reached 9.57 million shares, with 1,600 transactions. Over the past month, the shares of the company owned by Luhut Binsar Pandjaitan have decreased by 6.35 percent, and have corrected by 23.71 percent over the past three months. 

PT Golden Energy Mines Tbk. (GEMS) achieved coal production of 50.7 million tons in 2024.According to its official statement, GEMS recorded coal production of 50.7 million tons in 2024, an increase of 10% from 2023, which was 46.1 million tons. Meanwhile, the overburden removal (OB) or soil stripping by GEMS reached 265.2 million bank cubic meters (bcm), a decrease from 2023, which was 275.8 million bcm.For sales, GEMS recorded coal sales of 51.9 million tons throughout the last year. This sales figure represents an 11% increase compared to 2023, which was 46.9 million tons.GEMS' coal sales were dominated by exports, accounting for 63% of total sales in 2024. Of the export sales, 45% went to China, 11% to India, and 7% to other countries. Meanwhile, domestic sales accounted for 37% of the company's total sales, amounting to 19.1 million tons.Additionally, GEMS reported a net profit of USD 473.8 million, equivalent to IDR 7.65 trillion (using the Jisdor exchange rate of IDR 16,157 per USD as of December 31, 2024) in 2024.This net profit represents an 8.6% decline compared to 2023, where GEMS' net profit was recorded at USD 518.38 million.The decrease in net profit was primarily due to a decline in GEMS' operating revenue, which dropped to USD 2.7 billion (equivalent to IDR 43.71 trillion), a 6.77% decrease from 2023, which stood at USD 2.9 billion.

PT Kreasi Jasa Persada has increased its shareholding in PT Petrosea Tbk. (PTRO). PT Kreasi Jasa Persada purchased 39,718,000 common shares of PTRO at a purchase price of IDR 3,030.66 per share through two transaction stages on March 4, 2025, and March 5, 2025. This information was conveyed by the company in its press release in Jakarta yesterday.CUAN's CEO, Michael, explained that the purchase of PTRO shares is aimed at business development and increasing the company's assets. "This will provide greater value to the company's stakeholders in the future," he said.Thus, the total investment made by the controlling entity of PTRO amounts to approximately IDR 120.37 billion. After the effective transaction, the number of shares held by CUAN’s business entity, which also controls PTRO, increases to 4.22 billion shares, or 41.91% of the voting rights. "This purchase is in line with the company's business development plan," Michael added.Previously, PTRO secured a mining services contract worth approximately IDR 4.03 trillion. PTRO’s Corporate Secretary, Anto Broto, stated that the company had signed a mining services agreement with PT Bara Prima Mandiri and PT Niaga Jasa Dunia on February 26, 2025. Under this agreement, PTRO acts as the mining services contractor, BPM holds the mining business operation permit (IUP-OP), and NJD is the company designated by BPM to operate the mine. "This agreement will be effective from the term sheet's effective date, November 5, 2024, until December 31, 2032," said Anto.Anto explained that this new contract is part of the company’s efforts to increase revenue and provide a better return on investment to shareholders. As is known, the estimated overburden production from this project will reach 135.46 million BCM, and coal production is expected to be 7.53 million tons. "This will positively impact the company’s sustainability, as well as improve the company’s financial and operational performance," he added.Throughout 2024, PT Petrosea Tbk. recorded a decline in net profit. The net profit attributable to the parent entity owners was USD 9.69 million, which represents a 20.74% YoY decrease from USD 12.2 million in 2023. PTRO posted revenues of USD 690.81 million, a 19.59% YoY increase from USD 577.61 million in 2023. PTRO’s revenues came from construction and engineering (USD 299.17 million), mining (USD 290.15 million), services (USD 34.62 million), others (USD 2.68 million), and coal sales (USD 64.17 million).Based on its clients, the largest sources of PTRO’s revenue in 2024 were PT Freeport Indonesia (USD 166.09 million), PT Kideco Jaya Agung (USD 125.97 million), and BP Berau Ltd. (USD 69.39 million). At the same time, PTRO’s direct operating expenses increased from USD 495.51 million in 2023 to USD 600.52 million in 2024. Additionally, PTRO incurred selling and administrative expenses of USD 51.62 million, interest and financial expenses of USD 25.89 million, and final tax expenses of USD 9.71 million.