PT Bumi Resources Tbk ( BUMI ) ensures that margins are maintained amidst the implementation of the new progressive coal royalty.
Just so you know, the Government previously issued Government Regulation Number 15 of 2022 concerning Non-Tax State Revenue (PNBP). In this new provision, progressive coal royalties based on commodity prices are imposed on business actors holding Special Mining Business Permits (IUPK).
In this new regulation, IUPK is subject to a progressive royalty from 14% to 28% depending on the Reference Coal Price (HBA). In addition, this provision applies to generation I and generation I+ PKP2Bs that have changed their licenses to IUPK.
Meanwhile, this rule officially applies this year for companies that get IUPK approval before 2022. Meanwhile, for companies that get IUPK in 2022, this policy will only take effect in 2023.
Under these conditions, BUMI’s two subsidiaries, namely PT Arutmin Indonesia and PT Kaltim Prima Coal (KPC) will also be subject to this new policy. PT Arutmin Indonesia received an extension to become an IUPK on November 2, 2020. Meanwhile, PT KPC obtained a permit extension to become an IUPK on December 31, 2021.
“At the current condition of coal prices, the margin so far after (the application of) new royalties is still manageable,” said Director and Corporate Secretary of BUMI Dileep Srivastava to Kontan, Monday (1/8).
Dileep continued, his party was ready to follow the existing regulations regarding the imposition of this coal royalty. This year, BUMI’s management targets revenues to increase significantly compared to 2021.
Dileep explained that this performance improvement effort was overshadowed by the impact of the ongoing rainfall since December 2021. Meanwhile, for the first 6 months of this year, BUMI’s production is expected to reach the range of 35 million tons to 36 million tons.
“The guidance (target) for 2022 is 78 million tons to 83 million tons. It could be 10% higher if the weather is normal,” explained Dileep.
Just so you know, previously BUMI targeted production to reach 81 million to 86 million tons. Kontan noted, BUMI successfully posted a 32.6 percent increase in revenue in the first quarter of 2022 of US$ 1.37 billion compared to the same period last year of US$ 1.03 billion.
Meanwhile, profit attributable to owners was US$ 43.3 million compared to a loss of US$ 11.7 million in the first quarter of 2021.