Published: September 26, 2017 |

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Bukit Asam (PTBA) is focusing on seeking coal mines to be acquired in Kalimantan. The company considers that Kalimantan is an area with abundant coal reserves and has better logistics access than Sumatra.

Director of Bukit Asam, Arviyan Arifin confirmed that the company is looking for a mine outside of Sumatra Island. Bukit Asam does still have the resources and reserves of large coal in Sumatra.

“We are also looking beyond Sumatra because the logistics flow in Sumatra is difficult,” Arviyan Arifin said in Jakarta.

He continued, the mine targeted for acquisition of the company has large coal reserves. Meanwhile, the company is looking for a medium quality coal mine, about 4,200 kilo calories. Coal 4,200 kilo calories is the most widely used type in the steam power plant (PLTU) PT Perusahaan Listrik Negara (PLN).

Furthermore, the criteria of the targeted coal mines are those already in production (brownfield). It is not interested in the Greenfield mine because the risk is higher.

Arviyan Arifin said that the company will prepare funds from internal cash to acquire. If needed, Bukit Asam will seek bank loans to patch up the shortage of funds. Bukit Asam also increasingly seriously entering the business of renewable energy.

The company will develop solar power plants (PLTS), hydropower (PLTA) and biomass power plants.

“The strategy of the future is to transform into an energy company. Therefore, the company is not only working on coal-based coal-fired power plants, the company is also very interested in renewable energy power plants,” said Director of Bukit Asam, Arviyan Arifin.

“Bukit Asam is currently participating in a tender for three PLTS - PT Perusahaan Listrik Negara (PLN) in Sumatra Island. ‘Each PLTS has a capacity of around 30 megawatts (MW),” said Arviyan Arifin.

In addition to participating in the tender, the company is reviewing the development of PLTS in Bukit Asam’s former mining area. He stated that the company has a land area of 20,000 hectares (ha) which will be used for PLTS.

Bukit Asam team is still exploring the intricacies of PLTS business. One of the things that highlighted the company is the issue of technology, because the company must ensure the technology is used exactly with weather conditions in Indonesia.

The investment value of PLTS is believed to be much cheaper compared to PLTU. In addition to the value of cheaper investments, the need for funds to manage the PLTS is also cheaper, so PLTS is expected to produce cheap electricity for the community.

Meanwhile, the company is exploring the development of hydropower with its partners. Arviyan did not want to elaborate further related to the plan.

“The location of hydropower will be in Sumatra and Sulawesi,” said Arviyan Arifin.

Related to PLTU project, Arviyan said that the company is targeting to start construction of Sumsel 8 project with 2x620 MW capacity in Banko Tengah this year. Bukit Asam will complete the PPA amendment with PLN first. One of the PPA amendments is related to the transmission scheme changes. The plan, PLTU Sumsel 8 will be completed in 2021.

To stop by Bukit Asam’s website, CLICK HERE

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