Indika Energy Establishes New Subsidiary, PT Bima Invi Sinergi Alami (BISA)

Indika Energy Establishes New Subsidiary, PT Bima Invi Sinergi Alami (BISA)

28 Jan 2026, 05:40 AM
MIND ID’s IDR 60 Trillion Downstreaming Projects Expected to Create Thousands of Jobs
MIND ID’s IDR 60 Trillion Downstreaming Projects Expected to...
27 Jan 2026, 05:40 AM
PPA Implements Indonesia’s First Private Network for the Mining Sector
PPA Implements Indonesia’s First Private Network for the Min...
31 Jan 2026, 05:44 AM
Merdeka Gold Resources (EMAS) Moves Closer to Gold Production at the Pani Gold Mine
Merdeka Gold Resources (EMAS) Moves Closer to Gold Productio...
27 Jan 2026, 05:39 AM
ANTAM, IBC, and Huayou Partner to Strengthen Nickel Downstreaming and Build Indonesia’s Integrated...
ANTAM, IBC, and Huayou Partner to Strengthen Nickel Downstre...
30 Jan 2026, 06:29 AM
ITB Supports Decision to Exclude Universities from Mining Permits
ITB Supports Decision to Exclude Universities from Mining Permits
18 Feb 2025, 04:46 PM 3021

The Bandung Institute of Technology (ITB) expressed its support for the government and the House of Representatives' (DPR's) decision to exclude universities from holding mining management permits.ITB Chancellor, Prof. Tatacipta Dirgantara, stated that this decision aligns with the core principles of higher education: education, research, and community service (Tridharma)."ITB is committed to maintaining academic independence and the integrity of educational institutions. We believe that the decision not to grant mining management permits to universities is the right step," Dirgantara stated in Bandung on Tuesday.He emphasized that ITB remains dedicated to contributing to the advancement of the mining industry through its academic strengths in science and technology development while preserving its academic independence.Dirgantara explained that mining operations inherently involve high risks, substantial investments, long-term capital returns, and meticulous management.Moreover, he indicated that the direct involvement of universities in mine management could jeopardize academic independence and institutional integrity.He noted that universities do not typically hold direct mining concessions globally, as this could create perceptions of bias toward specific industries."ITB shares the view that universities should maintain their dignity by focusing on the Tridharma of Higher Education and preserving their academic independence," he added.Despite this stance, ITB acknowledges that universities can still play a vital role in Indonesia's mining sector.This contribution can manifest through producing skilled graduates for the industry, conducting pertinent research, offering expert services via university-owned entities, and benefiting from industry-provided mining locations for practical training and research.Strengthened collaboration between universities and the mining industry through mutually beneficial education and research partnerships is also seen as crucial.The government and DPR recently agreed to exclude universities from holding mining operating permits, a provision that was earlier under consideration in the draft amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba Bill).Instead, mining business permits (IUP) will be granted to third parties such as State-Owned Enterprises (BUMN), regional-owned enterprises (BUMD), and private entities.Universities are expected to benefit indirectly through research funding and scholarships offered by these third parties.This decision was finalized ahead of the plenary meeting for the first-level decision-making of the Minerba Bill on February 17.

BUMI Supports Sustainable Energy Transition with Efficiency and Innovation
BUMI Supports Sustainable Energy Transition with Efficiency and Innovation
18 Feb 2025, 04:43 PM 3983

PT Bumi Resources Tbk (BUMI), the largest coal producer in Indonesia, reaffirms its commitment to supporting the sustainable energy transition through operational efficiency and environmentally friendly innovations. Amid growing global energy demand, BUMI continues to play a role in maintaining electricity supply stability while implementing sustainability practices.BUMI's Vice President of Investor Relations & Chief Economist, Achmad Reza Widjaja, stated that the coal industry can develop sustainably through a combination of operational excellence, innovation, and social and environmental responsibility. "Coal will continue to be an important pillar in global development, as it is not just about energy but also about creating a brighter future for all," he said in his statement on Tuesday (18/2/2025).BUMI recorded coal production of 57.3 million tons during the January–September 2024 period, making it the largest contributor to national production. This production not only supports domestic energy security but also contributes to Indonesia's coal exports, which meet 40 percent of global demand. As part of its sustainability commitment, BUMI implements various environmental recovery programs and community empowerment initiatives around its operational areas. The company also continues to pursue operational efficiency and innovation to balance energy exploration with environmental preservation.With a strong position in both the Asian and global markets, BUMI strives to continue contributing to a more sustainable energy future. Coal remains an important part of the energy transformation, supporting the transition to cleaner energy sources while not neglecting the ever-growing energy demand.Coal Still the Most Economical Energy SourceCoal remains the most economical energy source compared to other alternatives, despite the ongoing push for the transition to new and renewable energy (NRE). Previously, the Chairman of the Indonesia Mining Association (IMA), Rachmat Makkasau, emphasized that coal continues to be the primary choice in the national energy mix due to its lower production costs and abundant availability. "Until now, coal is the cheapest energy compared to others. Moreover, the industry has implemented various methods to reduce emissions," said Rachmat at the Energy for Prosperity: The Economic Growth Impacts of Coal Mining seminar, organized by the Energy and Mining Editor Society (E2S) in Jakarta, Thursday (14/3/2024).Indonesia has coal reserves of 35 billion tons and resources reaching 134 billion tons. If optimally utilized for domestic needs, national coal can still be used for up to 500 years. Even with the current export scheme, its utilization is estimated to last for another 200 years. Rachmat emphasized the importance of implementing the Clean Coal Process to ensure more environmentally friendly coal usage. "If the Clean Coal Process is applied and emissions can be reduced, or even eliminated, then there should be no issue, right?" he said. He added that, in addition to ensuring national energy security, the coal industry continues to innovate in operational efficiency and environmental impact reduction. These efforts are part of a long-term strategy to ensure that coal remains relevant in meeting global energy needs while also supporting the transition to cleaner energy.

PTFI Improves Security-reduces Costs Through "Smart Mining" Technology
PTFI Improves Security-reduces Costs Through "Smart Mining" Technology
18 Feb 2025, 04:40 PM 3172

President Director of PT Freeport Indonesia (PTFI), Tony Wenas, stated that the implementation of the smart mining concept by PTFI has proven to enhance safety and productivity while reducing costs in mining operations.Tony explained that PTFI has currently implemented cloud computing-based technology with an adoption rate of 80 percent and uses more than 200 servers to support its operational systems."With smart mining, human presence in the blasting, hauling, and crushing processes is minimized, which improves safety. Additionally, with remote operation from a distance of 8 kilometers, productivity can increase," said Tony during the 'Data Driven Strategy in Mining and Mineral Resources' session at the Indonesia Data and Economic Conference (IDE) 2025, in Jakarta, on Tuesday.Tony further explained that the use of this technology has reduced operational time by up to two hours per day, resulting in cost efficiency.He gave an example that employees used to spend up to two hours commuting to and from the underground mine."With this technology, we can save two hours a day, and of course, from a cost perspective, it will be much lower," he added.In addition to improving time and cost efficiency, the technology applied also enables faster decision-making based on more accurate data.However, Tony emphasized that the final decision still lies in the hands of humans, while technology serves as a tool to assist in the analysis and processing of data."Decision-making is still carried out by humans, but the process becomes faster with more accurate data," he said.In the discussion, Tony also revealed that the implementation of smart mining technology at PT Freeport Indonesia was not a sudden decision, but rather a plan that has been in place since 2006.Smart mining is a concept that utilizes data-based technology to improve efficiency and productivity in mining operations. This technology includes the use of the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and big data analytics.Not only applied in mining operations, digital technology is also used in other aspects, such as the employee recruitment process, which now relies on AI-based systems to enhance efficiency and accuracy in selection.Tony emphasized that the development of digital technology in the mining industry is not just an option, but a necessity.He explained that mining companies face limitations in product innovation, so innovation must be focused on processes and operations."All systems are already digitalized, but there are still many potential breakthroughs that we can make in the future. We strive to be highly adaptive to needs and developments," he added.

Freeport's Digital Training Initiative Empowers Young Talent in Papua
Freeport's Digital Training Initiative Empowers Young Talent in Papua
17 Feb 2025, 08:41 AM 3183

PT Freeport Indonesia (PTFI) is actively supporting the development of the younger generation's skills in Mimika Regency by hosting a Digital Voice: Public Speaking & Podcast Creations training program, held in Timika from February 11-14, 2025.“This program is designed to equip participants with public speaking skills and the technical ability to create podcasts, which are becoming increasingly relevant in today's digital age,” said Katri Krisnati, Vice President of Corporate Communications for PTFI, in Timika on Thursday (February 13).The training was attended by 30 participants from Timika, representing a diverse range of professions, including civil servants, SMEs, influencers, students, housewives, private sector employees, and more. PTFI's partners such as SATP Public Relations, Maramowe Foundation, YPMAK Public Relations, and PFA Public Relations also joined the event.The program included both training materials and field practice at the Mimika Sports Complex (MSC). The field activity aimed to provide hands-on experience in podcast creation outside of a studio setting. At this facility, built by PTFI, participants learned to understand the real challenges of content production while also sharpening their creativity in producing high-quality podcasts.One participant, Franco Irahewa, shared his enthusiasm for the three-day program.“This is the first podcast training in Timika. I work as a public relations officer at the Taruna Papua Boarding School, and the activities I’ve participated in are very helpful for my role, helping to enhance my communication skills in creating quality content,” he said.Siti Ramadhana, a Communication Science student at the Muslim University of Indonesia, expressed her interest in the training.“The modules and practical training were very up-to-date, offering new insights and easy-to-implement knowledge here in Timika. As young people, we are excited and hope that activities like this will continue. One word for this program: wonderful!” said Siti.Katri emphasized that through this digital literacy initiative, PTFI hopes to open access to knowledge and skills for the youth of Mimika in personal branding, the workforce, and the creative industry. Participants are encouraged to maximize the internet productively and commercially.With more young people in Timika mastering digital skills, it is expected that they will contribute to spreading useful information and inspiring the wider community.“We hope that through this training, Papua's younger generation will become more confident in expressing their ideas and using communication channels positively,” said Katri.

Indonesia Still Dominates Nickel Market Despite Price Plunge in 2025
Indonesia Still Dominates Nickel Market Despite Price Plunge in 2025
17 Feb 2025, 08:38 AM 11452

Indonesia continues to be a major player in the global nickel industry despite a significant drop in commodity prices over the past two years. The country has maintained high production levels while facing challenges from environmental regulations and global market uncertainty.According to data from S&P Global, the price of nickel in 2025 reached USD 15,078 per metric ton, the lowest point since 2020. Throughout 2024, the average price was USD 15,328 per metric ton, down 7.7% from the previous year. The main factors driving this decline include the strengthening of the US dollar, US-China trade tensions, and a global supply surplus.As the world's largest nickel producer, Indonesia continues to increase its production. Data from the Indonesian Nickel Miners Association (APNI) indicates that national production is projected to reach 298.5 million wet metric tons in 2025, up from 272 million metric tons the previous year. This increase in production is contributing to the global supply surplus, which is expected to reach 156,000 metric tons this year.Despite the ongoing price decline, some Indonesian nickel producers remain optimistic about long-term demand, particularly from the electric vehicle (EV) industry. However, the industry's reliance on the Chinese market remains a key concern. Chinese companies currently control about 75% of nickel refining capacity in Indonesia, which increases the risk of supply chain instability.Additionally, tightening environmental protection policies are beginning to impact Indonesia's nickel industry. The government is considering implementing stricter regulations for companies that fail to meet sustainability standards. Some producers are even reportedly planning to import nickel ore from the Philippines to comply with the new regulations.Meanwhile, the economic impact of the US-China trade war is affecting nickel demand. The additional 10% tariff announced in January 2025 could pressure the nickel-based industrial sector, especially in China and other countries dependent on Indonesian nickel exports.On the other hand, while the nickel market faces short-term pressure, long-term projections still show potential for recovery. Market analysis suggests that the compound annual growth rate (CAGR) of nickel demand is expected to reach 5.1% through 2035, higher than the 4.6% growth in supply.With these projections, a supply deficit is expected to occur by 2030, potentially driving nickel prices higher in the future. This presents an opportunity for Indonesia to maintain its market leadership and encourage further investment in the nickel downstream industry.Nevertheless, Indonesia's nickel industry still faces significant challenges in balancing high production, stringent environmental regulations, and global geopolitical dynamics. The government and industry players need to find sustainable strategies to ensure price stability and long-term growth, as reported by Saptakee in an article on carboncredits.com.

Integrated Downstreaming the Future of Indonesia's Mineral Industry
Integrated Downstreaming the Future of Indonesia's Mineral Industry
16 Feb 2025, 08:40 AM 3680

In an effort to strengthen Indonesia's economic sovereignty and create added value for mineral and coal commodities, the state-owned mining holding company, MIND ID, continues to reinforce its commitment to becoming a driver of integrated downstream processing.Various strategic project initiatives have been launched to ensure that mineral resource management is conducted from upstream to downstream domestically, thereby creating a better supply chain.Heri Yusuf, Corporate Secretary of MIND ID, stated that MIND ID, through all its members, consistently carries out integrated downstream projects.It is hoped that Indonesia will benefit from each value-added process and become more sovereign in the global arena."By implementing integrated downstream programs, we strive to make a bigger impact on Indonesia's economy and further strengthen Indonesia's position in the global supply chain," said Heri on Saturday (16/2).Heri explained that one of the downstream projects undertaken by the MIND ID Group is the Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan, managed by PT Borneo Alumina Indonesia (BAI), a joint venture of MIND ID Group members, PT Indonesia Asahan Aluminium and PT Aneka Tambang Tbk.This project has an output capacity of 1 million tons of alumina per year for INALUM's aluminum production needs, which was previously sourced from the global market.In addition, the MIND ID Group, through PT Freeport Indonesia, has built a copper smelter and is developing a Precious Metal Refinery (PMR) in Gresik, East Java. This project plays an important role in integrating the copper processing supply chain, from copper ore and copper concentrate to finally becoming copper cathodes.Through this smelter, the MIND ID Group will also be able to process anode sludge into gold, silver bars, and other Platinum Group Metals (PGM) to meet the investment commodity needs of the Indonesian people.The commitment to implementing integrated downstream processing is also realized in the development of a nickel project in East Halmahera, which includes the construction of a Rotary Kiln-Electric Furnace (RKEF) smelter to produce nickel as well as a High-Pressure Acid Leach (HPAL) facility for electric vehicle battery raw materials. Both facilities not only strengthen Indonesia's position in the global electric vehicle industry but also create higher-tech and higher-value-added products domestically."Of course, we will continue to strengthen integration in every supply chain of managed mineral and coal commodities, so that we can contribute to improving economic performance and achieving 8% growth going forward," said Heri.

Indonesia in Talks with UAE to Develop Aluminium Industry
Indonesia in Talks with UAE to Develop Aluminium Industry
16 Feb 2025, 08:30 AM 3474

The Indonesian government is in talks with UAE’s Emirate Global Aluminium to develop its aluminium industry, as the Southeast Asian nation seeks to utilize its vast reserves of minerals.Indonesia has rich deposits of minerals like copper and bauxite — the main source of aluminium — and is the world’s largest source of nickel. Its government has been working to attract foreign investment to help develop its mineral processing industry.In a meeting with EGA CEO Abdulnasser Ibrahim Saif bin Kalban, Coordinating Minister for Economy Affairs Airlangga Hartarto discussed ways to move forward plans for the Dubai-based company to help aluminium production in Indonesia.“We need to make sure that cooperation in the aluminium sector will have a significant impact on the Indonesian economy, especially for jobs creation,” he said in a statement issued on Saturday.Hartarto was at the World Governments Summit in Dubai, where he also held talks with other UAE officials and business leaders.EGA and state-owned Indonesia Asahan Aluminium, or Inalum, have signed several strategic partnership agreements in the last few years, aimed at boosting Indonesia’s aluminium production capacity. This includes increasing that of Inalum’s North Sumatra smelter by up to 400,000 tons a year.The Emirati company, one of the world’s largest aluminium producers, also said it was planning to explore alternative sources of renewable energy in Indonesia to support its aluminium production plans.“With our capabilities and the advanced technology that we use, along with the natural resources potential in Indonesia — we will be able to produce the best alumina in high quantities,” Abdulnasser was quoted as saying.But Indonesia still needs to work out low-carbon options to generate enough electricity for green aluminium production, according to the Coordinating Ministry for Economic Affairs.Green aluminium, or low-carbon aluminium, is a sustainable metal produced using methods powered by renewable energy sources, essentially reducing the carbon footprint.

MIND ID Consistently Implements Integrated Downstreaming
MIND ID Consistently Implements Integrated Downstreaming
15 Feb 2025, 08:36 AM 3350

MIND ID continues to reaffirm its commitment to becoming a driving force for integrated downstreaming.This effort aims to strengthen Indonesia's economic sovereignty and create added value for mineral and coal commodities. MIND ID's Corporate Secretary, Heri Yusuf, revealed that several strategic project initiatives have been launched to ensure that mineral resource management is conducted from upstream to downstream within the country, thereby creating a better supply chain.Heri Yusuf further explained that the company, through all its members, consistently carries out integrated downstreaming projects.It is hoped that Indonesia will benefit from each process of value-added enhancement and become more sovereign on the global stage."Through the implementation of integrated downstreaming programs, we aim to make a greater impact on Indonesia's economy and further strengthen Indonesia's position in the global supply chain," Heri stated in his remarks on Sunday (February 16, 2025).Heri explained that one of the downstreaming projects being carried out by the MIND ID Group is the Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan, managed by PT Borneo Alumina Indonesia (BAI), a joint venture company of MIND ID Group Members, PT Indonesia Asahan Aluminium and PT Aneka Tambang Tbk.This project has an output capacity of 1 million tons of alumina per year for the production needs of aluminium at INALUM, which was previously sourced from the global market.In addition, the MIND ID Group, through PT Freeport Indonesia, has built a copper smelter and will develop a Precious Metal Refinery (PMR) in Gresik, East Java.This project plays an important role in the integration of the copper processing supply chain, starting from copper ore, copper concentrate, and ultimately producing copper cathodes.Through this smelter, the MIND ID Group will also be able to process anode slime into gold, silver bullion, and other Platinum Group Metals (PGMs) to meet the investment commodity needs of the Indonesian people.The commitment to integrated downstreaming is also manifested in the development of a nickel project in East Halmahera, which includes the construction of a Rotary Kiln-Electric Furnace (RKEF) smelter to produce nickel and a High-Pressure Acid Leach (HPAL) facility for electric vehicle battery raw materials.These two facilities not only strengthen Indonesia's position in the global electric vehicle industry but also create higher value-added, technology-driven products within the country."Of course, we will continue to strengthen integration in every supply chain of mineral and coal commodities that we manage, so that it can contribute to improving economic performance to achieve 8% growth in the future," Heri concluded.

Merdeka Copper Gold Reports Solid Operational Performance in Q4 2024
Merdeka Copper Gold Reports Solid Operational Performance in Q4 2024
13 Feb 2025, 08:39 AM 6952

PT Merdeka Copper Gold Tbk reported strong operational progress for the quarter, specifically as of December 31, 2024, marked by high production growth, cost efficiency, and strategic advancements. Merdeka's gold and copper mining operations closed the year with strong results.The Tujuh Bukit Gold Mine produced 35,824 ounces of gold during the quarter, with a cash cost of USD 975/oz, an all-in sustaining cost (AISC) of USD 1,260/oz, and an average sales price (ASP) of USD 2,672/oz.During the same period, 29,056 ounces of gold were sold, generating unaudited revenue of USD 83.4 million, including USD 6 million from by-product silver revenue. The Wetar Copper-Pyrite Mine produced 3,419 tons of copper during the quarter, with a cash cost of USD 1.63/lb, AISC of USD 2.83/lb, and ASP of USD 4.18/lb. During this period, 3,101 tons of copper were sold, generating unaudited revenue of USD 28.6 million.Gold production for FY2024 reached 115,867 ounces, in line with the guidance set, with a total cash cost of USD 1,017/oz, an all-in sustaining cost (AISC) of USD 1,337/oz, and an average sales price (ASP) of USD 2,371/oz.Copper production for FY2024 reached 13,902 tons, which is within the guidance range of 13,500 to 14,000 tons. Additionally, the Wetar Copper-Pyrite Mine exceeded its cash cost and AISC guidance for FY2024, with a cash cost of USD 2.63/lb and an AISC of USD 3.58/lb.For FY2025, Merdeka has set production guidance of between 100,000 and 110,000 ounces of gold and between 11,000 and 13,000 tons of copper.PT Merdeka Battery Materials Tbk (IDX: MBMA) recorded strong performance in nickel operations, primarily driven by the SCM (Sulawesi Cahaya Mineral) Mine. In this quarter, the SCM Mine set a production record of 3.4 million wet metric tons (wmt) of limonite and 3.0 million wmt of saprolite, reflecting a year-over-year (YoY) increase of 110% and 108%, respectively.During the same period, 2.01 million wet metric tons (wmt) of saprolite ore were delivered to MBMA's RKEF smelter, while 4.1 million wmt of limonite ore was sold to PT Huayue Nickel Cobalt, generating unaudited revenue of USD 73.2 million, with an average sales price (ASP) of USD 17.9/wmt.MBMA's refining facilities produced a total of 30,716 tons of nickel products, including 18,823 tons of nickel in nickel pig iron (NPI) and 11,893 tons of nickel in high-grade nickel matte (HGNM), generating unaudited revenues of USD 223.8 million and USD 158.8 million, respectively, with ASPs of USD 11,887/ton and USD 13,229/ton.Looking ahead, MBMA's sales guidance for FY2025 projects the delivery of 6.0 to 7.0 million wet metric tons (wmt) of saprolite ore and the sale of 12.5 to 15.0 million wmt of limonite ore. Additionally, nickel sales are expected to range between 80,000 and 87,000 tons of nickel in NPI (Nickel Pig Iron) and between 50,000 and 55,000 tons of nickel in HGNM (High-Grade Nickel Matte).The profitability of the HGNM plant is being closely monitored. If the expected profit margins are not met, MBMA may consider temporarily halting production at the plant and resuming once market prices improve. Merdeka continues to advance its growing projects, with construction activities at the Pani Gold Project reaching 33% completion by the end of the quarter.The project is scheduled to begin operations by the end of 2025, with the first gold production expected in early 2026. Meanwhile, the development of the Tujuh Bukit Copper Project continues, including surface resource drilling, exploration of potential open-pit mining targets near the surface, and technical studies.Merdeka is actively optimizing this project and plans to release an updated pre-feasibility study in the second quarter of 2025. The study will include estimates of significantly larger ore reserves and a higher underground mining production rate using the sub-level caving (SLC) method, with a throughput of 6 million tons per annum (Mtpa).Commissioning activities at the AIM (Acid, Iron, Metal) Plant are progressing well. The pyrite plant is fully operational, and the acid plant has been running since April 2024. In this quarter, the acid plant recorded its highest production, producing 164,985 tons of acid and 225,036 tons of steam. The construction of the chloride metal plant has been completed, and the commissioning process is currently underway.The copper cathode plant is in the final stages of construction, with partial commissioning starting this quarter. In December 2024, PT ESG New Energy Material (PT ESG) successfully produced its first batch of MHP (Mixed Hydroxide Precipitate), marking a significant milestone in MBMA's strategy for downstream battery material production."Gold, copper, and nickel operations at Merdeka are in line with our production guidance, generating unaudited quarterly and FY2024 revenues of USD 575.8 million and USD 2.2 billion, respectively, reflecting a year-over-year (YoY) increase of 7% and 31%. We continue to develop world-class projects, including the Pani Gold Project, which will become one of the largest primary gold mines in Indonesia, as well as the Tujuh Bukit Copper Project, one of the largest untapped copper deposits in the world. At MBMA, the commissioning of two HPAL facilities will further strengthen our position as a leader in the battery and electric vehicle value chain," said Albert Saputro, President Director of PT Merdeka Copper Gold Tbk.In terms of sustainability, Merdeka demonstrates its commitment to ESG (Environmental, Social, and Governance) principles by maintaining an A rating from MSCI (Morgan Stanley Capital International), making it the only Indonesian mining company to achieve an A rating in the MSCI Diversified Metals and Mining category.Additionally, Merdeka has received various awards for its Sustainability Report and ongoing sustainability practices, including the Silver Rank in the Asia Sustainability Report Rating (ASRRAT) 2024, an A+ rating in the "Sustainability Report Study of Public Companies in Indonesia 2023" organized by FIHRRST in collaboration with the Belgian Government, and the Sapphire rank in the Sustainable Business Integrity Index 2024 organized by Transparency International Indonesia (TII) and Tempo Data Science."Merdeka's strategic investments are expected to significantly improve our performance, especially with the commencement of operations at the two MBMA HPAL facilities and the commissioning of the Pani Gold Project by the end of 2025. Our world-class assets and proven commitment to sustainability, as well as ESG principles, further strengthen Merdeka Group's position as a leading mining company in Indonesia," concluded Albert.

Coal Exporters Brace for New Pricing Rule as Indonesia Moves to Enforce HBA
Coal Exporters Brace for New Pricing Rule as Indonesia Moves to Enforce HBA
12 Feb 2025, 08:34 AM 6296

The Energy and Mineral Resources Ministry is set to mandate the use of the country’s benchmark coal price (HBA) in export transactions, a move welcomed by the Indonesian Energy, Mineral, and Coal Suppliers Association (Aspebindo). The association also urged the government to establish a green coal price index, Indonesia Green Coal Index (IGCI), to reflect sustainability factors in pricing.Aspebindo Deputy Chairman Fathul Nugroho said adopting HBA as the reference price for exports would enhance Indonesia’s control over its coal pricing in the global market.“Using HBA will better reflect rising mining costs, including increasing stripping ratios, land acquisition expenses, and fuel prices,” Fathul said on Wednesday.Currently, coal exporters refer to the Indonesia Coal Index (ICI) in pricing transactions, while royalty payments are based on the government-issued HBA. The proposed policy would require international sales to align with HBA, reducing discrepancies between royalty payments and actual sales prices.Fathul added that HBA pricing remains competitive with ICI, minimizing risks for exporters. However, he suggested updating the HBA weekly instead of monthly to align with fluctuating production costs and global coal prices.In addition to endorsing the mandatory use of HBA, Aspebindo urged the government to introduce the Indonesia Green Coal Index (IGCI), incorporating sustainability factors such as carbon taxes into the pricing model.“A green benchmark price would account for royalties, carbon taxes, and average FOB prices of major mining companies. This would encourage environmentally responsible coal mining while ensuring the industry’s long-term sustainability,” Fathul added.Export Growth Amid Price DeclinesIndonesia’s coal export volume rose 5.67 percent year-on-year (YoY) in October 2024 to 51.6 million tons, driven by increased winter demand in the Northern Hemisphere. However, the total export value dropped 2.08 percent year on year to USD 3.29 billion due to declining global coal prices amid higher supply.China emerged as the largest driver of Indonesia’s coal export growth, with shipments surging 41.45 percent year on year in October 2024 to 26.42 million tons. The spike was fueled by increased power demand ahead of winter and heightened safety inspections at Chinese mines following a rise in coal mining accidents.Bank Mandiri’s economic research team expects Indonesia’s coal export growth to slow in 2024 due to rising global supply and efforts by major importers like China and India to curb imports. Nevertheless, global coal prices are projected to remain elevated in the coming years, supporting Indonesia’s coal industry.The average coal price for 2024 is forecast to decline to $117 per ton before slightly easing to USD 110 per ton in 2025.

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