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Indonesia coal miner Bukit Asam targets higher exports amid high prices

Indonesia coal miner Bukit Asam targets higher exports amid high prices
A coal plant in Banten, Indonesia. (Photo: AFP/Ronald Siagian)

JAKARTA: Indonesia's state coal miner PT Bukit Asam aims to increase its export volume by 17 per cent from around 12 million tonnes last year to some 14.1 million tonnes this year, based on sales targets its chief executive shared with reporters on Monday (Oct 25).

Bukit Asam this year is setting aside 47 per cent of its targeted 30 million tonnes sales for exports, Bukit Asam chief executive Suryo Eko Hadianto said in a virtual briefing. Company data showed that exports made up 46 per cent of the 26.1 million tonnes sold last year.

"Bukit Asam is targeting an increase in the coal export portion to take advantage of the rising international price of coal," Suryo said.

Bukit Asam's January to September net income leapt to 4.8 trillion rupiah (US$339.94 million) from 1.7 trillion rupiah in the same period last year, reflecting a sharp rise in coal prices due to demand surging as economies began emerging from the effects of the pandemic.

The company's main export markets include China, India, Philippines and Vietnam, and it has also recently added a new destination, Bangladesh, director Fuad Fachroeddin said.

Meanwhile, Suryo added that he believed coal prices would stay high until next year supported by continued strong demand, including buying from countries that switched to coal as a fuel for their power plants as gas prices had soared even faster.

"The golden era of coal will continue until next year, that's our belief," he said, without giving out specific price outlook.

Source: Reuters/ng

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