ILLUSTRATION. Heavy equipment or dump trucks carrying coal at the PT Adaro Indonesia mine are mined by Tutupan Tabalong, South Kalimantan. Pho KONTANAchmad Fauzie / 19/06/2008
Reporter: Akhmad Suryahadi | Editor: Tendi Mahadi
KONTAN.CO.ID – JAKARTA. After struggling due to the pandemic, the country’s coal industry is now getting fresh air. Positive news comes from China, where the Bamboo Curtain country will buy thermal coal worth US $ 1.467 billion from Indonesia next year.
Quoting the news Reuters, Wednesday (25/11), a trade agreement was signed between the Indonesian Coal Mining Association (APBI) and China Coal Transportation and Distribution on Wednesday (25/11). APBI said, it is hoped that there will be an increase in coal exports to China by 200 million tons in the coming year. This number will be reviewed annually.
Kiwoom Sekuritas Indonesia analyst Sukarno Alatas assessed that this purchase plan would have a positive impact on domestic coal mining issuers. To be sure, with increasing demand it will increase sales volume and total revenue will also increase.
Also Read: China buys coal from Indonesia, shares of coal issuers are increasingly burning
“The performance will be much better than this year because it was stopped due to Covid-19. The performance of the majority of coal issuers will be better next year, ”said Sukarno to Kontan.co.id, Thursday (26/11).
Likewise, the Head of Research at NH Korindo Sekuritas Indonesia, Anggaraksa Arismunandar, said that the news that China’s plan to purchase Indonesian coal was indeed a breath of fresh air for issuers in this sector. Although the export target for the first year is reported to be 200 million tonnes, it should be noted that this target will be reviewed annually.
“In our record, issuers that have a portion of sales to China include PT Adaro Energy Tbk (ADRO), PT Indo Tambangraya Megah Tbk (ITMG), and PT Harum Energy Tbk (HRUM), “He explained to Kontan.co.id, Thursday (26/11).
In response to this, Head of Corporate Communication Division Adaro Energy Febriati Nadira said ADRO will focus on maintaining healthy margins and continuity of supply to customers.
“We will also keep abreast of market developments by continuing to carry out operations as planned in the company’s mines,” said Febriati to Kontan.co.id, Thursday (26/11).
Also Read: China scooped coal from Indonesia, Bumi Resources: So a breath of fresh air for us
ADRO coal sales in the first nine months of 2020 amounted to 40.76 million tonnes, with 49% of sales to the Southeast Asian market, where Indonesia and Malaysia took the largest portion.
Just so you know, according to Refinitiv data, China’s coal imports from Indonesia decreased 24.5% in the first 10 months of 2020 to 86.88 million tons, compared to 115.03 million in the same period last year.
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