State-owned mining company PT Bukit Asam (PTBA) has announced a significant increase in its Capital Expenditure (CAPEX) for 2025, allocating Rp7.2 trillion (US$441.7 billion) − more than triple the realized CAPEX of around Rp2.3 trillion in 2024. 

As of the first quarter of this year, the company has already utilized approximately Rp1 trillion of the planned budget.

"If we look at the realization for the first quarter, it’s already showing good progress," Bukit Asam Corporate Secretary Niko Chandra told a press conference following the company’s annual general shareholders’ meeting in Jakarta on Thursday, June 12, 2025.

The spike in capex is driven by the company's efforts to develop its logistics infrastructure, particularly through the enhancement of the Kramasan Railway transport corridor − part of Bukit Asam’s broader “unlocking logistics” initiative.

Despite the ongoing volatility in global coal prices, Bukit Asam President Director Arsal Ismail confirmed that the company remains committed to its production target of 50 million metric tons of coal for 2025, consistent with its Work Plan and Budget (RKAB).

"As of June, we have no plans to revise our production or sales targets. Everything is still on track," Arsal said.

The sales volume target also remains at 50 million tons. Bukit Asam’s strategy focuses on maintaining cost efficiency while expanding export markets to offset the uncertain pricing environment.

"We are fully committed to what we have already planned," he added.

Arsal acknowledged that current coal prices have dropped significantly compared to last year, falling below US$100 per ton based on the ICI index. He attributed the decline in part to the ongoing trade tensions between the United States and China.

“If the trade war continues, it will affect China's economic growth and, consequently, the coal sector globally,” he warned.

To mitigate risk, Bukit Asam has been diversifying its export markets beyond China and India, reaching new buyers in Vietnam, Thailand, South Korea, and Japan.

"We are diversifying to ensure our products continue to find demand in the global market," said Arsal.

In response to price pressure, the company is also refining its internal strategies by implementing cost-saving measures.

“We’re focusing on how price fluctuations affect our production activities. With the current downward trend, we must emphasize cost efficiency and implement cost diversification,” he said.

Although current coal prices are still below expectations set earlier this year, Arsal remains hopeful that improvements in global economic conditions and the resolution of trade disputes will support a recovery in prices.

"When the trade war ends and economic growth picks up, we expect coal prices to rebound, ideally returning to last year’s levels," he concluded.