Flooring Guide by Cinvex JAKARTA – PT Bukit Asam Tbk. (PTBA), a leading Indonesian state-owned coal mining company, is currently evaluating the prospect of conducting a share buyback amidst the dynamic conditions prevailing in the stock market.
Arsal Ismail, President Director of PTBA, affirmed that such a corporate action remains a viable option. The company will carefully consider market movements and assess the balance of its financial performance before making a definitive decision.
“So far, the movement of our shares has been relatively stable, so a buyback is not yet planned. However, the option remains open under current conditions, especially as we observe the sentiment surrounding MSCI,” Ismail stated on Monday, April 6, 2026. He highlighted that fluctuations in the capital market are a natural occurrence, often influenced by various external dynamics.
Despite this inherent volatility, the energy sector, particularly coal, has found itself in a relatively advantageous position. The recent trend of rising coal prices has provided a significant boost, contributing additional profits to PTBA.
Nevertheless, the company is also meticulously calculating the potential increase in operational costs, particularly for fuel (BBM). This factor, if not managed effectively, could exert downward pressure on future profit margins.
Ismail elaborated that even amidst market uncertainties, PTBA’s performance has remained robust. In the past month, the appreciation in coal prices has effectively counterbalanced the rise in operational expenditures, including the potential surge in fuel costs.
He further added that despite pressures from the cost side, the current upward trend in coal prices continues to provide a positive environment for the company’s financial results. This scenario has enabled PTBA to record additional, albeit not substantial, profits.
“The increase in coal prices is still able to cover the rise in costs, allowing us to maintain a windfall, even if it’s not a large one,” he emphasized, underscoring the company’s ability to navigate cost challenges effectively.
Turning to its financial performance, PTBA reported a net profit of Rp2.93 trillion in 2025. This figure represents a 42.6% decrease compared to the previous year’s Rp5.1 trillion, primarily attributed to the softening of global coal prices. Despite this, the company posted an EBITDA of Rp6.08 trillion with a 14% margin throughout 2025. While the net profit faced pressure, PTBA demonstrated improved quarterly profitability, driven by optimized export portfolios and diligent cost efficiencies.
Operationally, PTBA maintained a solid performance. Coal production witnessed a 9% year-on-year growth, complemented by a 6% increase in sales. However, the average selling price (ASP) declined by 6% annually, mirroring the drop in global benchmark coal prices. Notably, the Newcastle Coal Index weakened by 22%, and the Indonesia Coal Index 3 fell by 16%.
According to its financial report, PTBA generated revenues totaling Rp42.65 trillion, a 6% increase from the previous year. Concurrently, the cost of revenues also rose by 5% to Rp36.39 trillion, commensurate with the expanded operational volume. Despite the increase in costs, efficiency gains were evident, with the stripping ratio improving to 6.07 times from the previous 6.23 times. Furthermore, coal transportation volume saw a 6% increase, from 38.2 million tons to 40.4 million tons.
With these robust operational results, PTBA remains committed to ensuring national energy resilience, particularly through its substantial supply to the domestic market, which accounts for more than half of its total sales. Looking ahead, the company plans to strategically combine cost efficiency initiatives with global market expansion to sustain its performance amidst the inherent volatility of commodity prices.
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