Jakarta. Bumi Resources (BUMI), the largest coal mining company in Indonesia and a joint venture between the Bakrie Group and the Salim Group, announces its various expansion plans in the coming years.

A key focus is to venture into the downstream coal sector, aligning with Indonesia's governmental objectives for decarbonization. Additionally, this venture is required for extending the mining business permits (IUPK) in both BUMI subsidiaries—Kaltim Prima Coal (KPC) and Arutmin Indonesia (Arutmin).

"The company is very open to exploring strategic partnerships in financing these downstream projects," Dileep Srivastava, Director, and Corporate Secretary of BUMI told Investor Daily recently.

"We are also seeking the latest technology, potential buyers, ESG-supportive funding, and policies that support the company to obtain attractive incentives from the government for the creation of sustainable energy," he added.

BUMI's Finance Director, Andrew Beckham, said that the company still has significant coal reserves in KPC and Arutmin, with a planned capital expenditure of $40 million (Rp 625.55 billion) to $80 million for 2024. 

The corporation foresees the potential for coal prices to rise in 2024, driven by global geopolitical uncertainties and the heightened demand for coal in electricity generation during the winter season.

Taking advantage of favorable weather conditions in mining regions, BUMI achieved a total production of 56.2 million tons by the end of September 2023. This marks a 5 percent increase compared to the same period last year, which recorded a production of 53.7 million tons. Coal production volume for 2024 is projected to reach 80 million tons.