PT Bukit Asam Tbk to diversify energy portfolio and restructure subsidiaries

PT Bukit Asam Tbk (PTBA) is implementing a major strategic shift through business diversification and corporate restructuring. The state-owned coal mining company aims to expand its portfolio into renewable energy and downstream processing to create new growth sources. PTBA targets that downstreaming and diversification will contribute approximately 20 percent of its total revenue within the next four years.

Key downstream projects include the development of Dimethyl Ether (DME) and Synthetic Natural Gas (SNG) in collaboration with the Pertamina Group. The coal-to-DME project, intended to reduce LPG import dependency, is expected to enter the construction phase next year. These projects are part of Indonesia's National Strategic Programs and are being coordinated by Danantara.

Simultaneously, PTBA plans to restructure its corporate hierarchy by reducing its number of subsidiaries by nearly half over the next three years, starting in mid-2025. This move aligns with broader government efforts led by Danantara to streamline state-owned enterprises (BUMN) to improve budget efficiency and accelerate resource downstreaming.