Indonesian coal miners on shaky ground as global demand falters, rules tighten
Analysts say country may need to fast-track its diversification strategy and look to other Asian markets
[JAKARTA] Indonesian coal miners are hurting from falling prices and softening demand from giant consumers India and China. This is even as a global supply glut and stricter regulations at home are further denting margins, adding salt to the wound.
Profits go south
The steep decline in coal prices has thrown a spanner in the works for Bukit Asam, a major state-owned mining company. Its first-quarter profit plunged 50.5 per cent year on year to 391.5 billion rupiah (S$30.7 million), highlighting the tough market headwinds that it is battling.
Similarly, listed coal producer Alamtri Resources Indonesia saw its profit shrink dramatically to 1.3 trillion rupiah, down nearly 80 per cent compared with the same period last year. China accounts for 30 per cent of each company’s export market share.
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