Published on April 7, 2026, by Bisnis.com
By Anitana Widya Puspa
PT Bukit Asam (PTBA) is seeking partners for the coal-fired power plant in Mempawah, West Kalimantan, which will start construction in 2027 to support Inalum’s aluminum smelter.
Bisnis.com, JAKARTA — PT Bukit Asam Tbk. (PTBA) is seeking partners to build its coal-fired power plant in Mempawah, West Kalimantan, as it plans to start construction in 2027.
PTBA Downstreaming and Diversification Director Turino Yulianto said the project is targeted to enter the construction stage in early 2027. The power plant will play a significant role as the main source of power for PT Indonesia Asahan Aluminium’s (Inalum) aluminum smelter.
The company is exploring a strategic partnership with several candidates from China, South Korea, and Japan for their technological and financial support.
“We are still in the process of finding partners for this project. In early 2027, the physical construction will begin,” he said on Monday (6/4/2026).
The Mempawah Power Plant will be part of PTBA’s efforts in locking the coal market for a long time.
The power plant with a capacity of 1.25 gigawatt (GW) is designed to support aluminum smelter operation with a capacity of 600,000 ton per year. PTBA is making sure the sustainability of low calorie coal absorption.
“Coal demand is expected to reach around 6.9 million ton a year and we are securing [the demand] for 30 years,” he said.
Meanwhile, PTBA Finance and RIsk Management Director Una Lindasari said the strategic project expansion will impact the company’s financial policies, including dividend distribution.
“We must balance investment needs and dividends. This year, several projects have begun operations, particularly the construction of a power plant in Mempawah, so cash flow conditions are a primary consideration,” she said.
In terms of financial performance, PTBA posted a net profit of Rp2.93 trillion in 2025, down 42.6% compared to the previous year’s Rp5.1 trillion.
This decline occurred amid weakening global coal prices. The company recorded EBITDA of Rp6.08 trillion with a 14% margin throughout 2025. Despite depressed profits, PTBA recorded quarterly improvements in profitability driven by export portfolio optimization and cost efficiencies.
From an operational perspective, the company’s performance remained solid. Coal production grew 9% annually, followed by a 6% increase in sales. However, the average selling price (ASP) fell 6% year-on-year due to the decline in global benchmark coal prices. The Newcastle Coal Index weakened by 22%, while the Indonesia Coal Index 3 fell 16%.
PTBA President Director Arsal Ismail stated that throughout 2025, the company recorded revenue of Rp42.65 trillion, a 6% increase compared to the previous year. However, the cost of revenue also increased 5% to Rp36.39 trillion, in line with increased operational volume.
Nevertheless, efficiency showed in a decrease in the stripping ratio to 6.07 times from 6.23 times previously. Furthermore, coal transport volume also increased 6% from 38.2 million tons to 40.4 million tons.
With this performance, PTBA will continue to maintain national energy security, primarily through supply to the domestic market, which accounts for more than half of total sales.
“Going forward, the company will also combine cost efficiency strategies with global market expansion to maintain performance amidst commodity price volatility,” he said.