According to Victor B. Tanuadji, President Director of PT SLR/PT SDJ, PT Titan Infra Sejahtera (TIS) continued to experience growth in 2024. As an illustration, the company recorded an EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) of USD 100 million last year.
“This year, we are optimistic that the figure will increase,” added Suryo Suwignjo, Operations Director of PT Titan Infra Energy, the holding company of TIS.
Suryo further explained that TIS’s revenue is directly related to the volume of its main commodity, coal, transported via SLR hauling roads and shipped through SDJ.
Increase in Transported Coal Volume
For instance, this year, TIS transported and shipped 21 million tons of coal, a 15% increase from the 18 million tons in 2023. Next year, the volume is expected to reach 27 million tons.
Collaboration with PT Bukit Asam Tbk
Interestingly, Victor added that since this year, PT Bukit Asam Tbk has started sending its coal production through TIS’s coal transport routes and ports. This is certainly a positive development for the company.
Victor believes that the volume of Bukit Asam’s coal transported via TIS’s routes will continue to grow year after year, especially as coal prices remain relatively stable at USD 125 per ton.
Infrastructure Capacity Expansion at PT Titan Infra Sejahtera
To anticipate potential bottlenecks in traffic flow caused by the surge in coal transport and shipments, TIS has increased the number of ports from two to three, equipped with five conveyors. Next year, the company plans to add one more conveyor.
Victor is optimistic about the company’s bright future. He explained that Indonesia, as one of the world’s leading producers and exporters of thermal coal, currently relies heavily on coal mines in Kalimantan.
The problem is that the stripping cost of coal in Kalimantan is becoming increasingly expensive due to the aging mines.
With rising excavation costs, prices become less competitive. “This is the opportunity that shapes our future,” Victor said enthusiastically.
South Sumatra: The Future of the Coal Industry
Victor’s optimism is not unfounded. The facts show that Sumatra is currently the second-largest coal-producing region in Indonesia, with South Sumatra—where TIS operates—being the largest contributor to Sumatra’s coal production.
South Sumatra has recorded coal reserves of 9.3 billion tons, accounting for 25% of the national coal reserves, which total 37.6 billion tons.
The concentration of coal mining in South Sumatra is located in three regencies: Muara Enim, Lahat, and Pali.
In Muara Enim alone, the government has issued at least 29 mining business permits.
This year, the South Sumatra Provincial Energy and Mineral Resources Agency (ESDM) has set a coal production target of 131 million tons.
These figures represent the future of TIS. As coal reserves in Kalimantan begin to deplete and production costs continue to rise, South Sumatra’s coal will inevitably attract buyers.
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