RMKE was established in June 2009 and its headquarters is in South Sumatra. The company undertakes a coal-trading business and provides coal logistics services for coal companies; with over 15 years of service. Its coal trading business is run through its subsidiary of PT Royaltama Multi Komoditi Nusantara (RMKN).

Road infrastructure projects

Apart from the 155 km road construction, the company will also use its allocated Capex for haul roads of 20-25 km and 40 km in 2023. The 20-25 km road will connect to Lahat and to Muara Enim, which are the bases for the mining operations, according to RMKE Financial Director Vincent Saputra.

Of the Capex disbursed in 2023, the company projects IDR 3.2 trillion in revenue, 75% of which will come from trade and 25% from logistics services. The company also intends to receive a net profit of IDR 558.6 billion. Meanwhile, from its IDR 1 trillion Capex until 2026, RMKE hopes to earn a revenue of IDR 36.3 trillion with a net profit of IDR 1.3 trillion.

According to Saputra, the company will be able to handle coal up to 20 million tons. Now, we can only handle 8-9 million tons.

RMKE is optimistic to earn a revenue stream of IDR 2.5 trillion with a net profit of IDR 375.4 billion until December 2022.

"We are currently serving 8 mines, but there are a dozen of mines that have not been able to leave [their commodities are hauled] until today. By constructing the [road] infrastructures, it will help the mines to transport [their commodities]," Saputra told Investor.id on November 30, 2022.

Risk in coal infrastructures 

However, there are problems relating to coal hauling especially transporting coal to the coal-fired steam power plant (PLTU). Most plants are located far form the coal mines. Each PLTU consumes around 170,000 tons of coal per year.

According to the Ministry of Industry, the national logistics industry are still facing problems due to various factors, such as the diversity of commodities, area size and geographical conditions as well as infrastructure conditions. These become the stumbling block for domestic logistics industry.

Meanwhile, a research by Rafniati Auliasari and Adi Djoko Guritno (2007) revealed that there were problems in the integrated supply chains (ISC) that caused production processes to stop temporarily. It is harmful to the supply chains and it affects the fluctuating price of coal.