State coal producer Bukit Asam (PTBA) booked profit attributable to owners of Rp2.8 trillion in the first half (H1) of 2023, dropped 54% year on year (y/y), as cost of revenue rose 45.5% y/y to Rp14.7 trillion, including the cost component for royalties, rail freight, and mining services. Introduction of new royalty rates for coal miners operating under IUP regime late last year clearly affected the company’s bottomline.

Energy producer Dian Swastatika Sentosa (DSSA), member of Sinarmas Group, booked profit attributable to owners of US$318 million in H1 of 2023, grew 26.7% y/y, as revenues rose 23% y/y to US$3.2 billion. On the other hand, Mitrabara Adiperdana (MBAP) suffered 75% fall in net profit due to substantial increase in coal royalty introduced since August 2022.

Shares of Bank JTrust Indonesia (BCIC) gained 6.25% to Rp136 on Monday (August 28), to market capitalization of Rp2,32 trillion as investors responded positively the bank’s rights issue program. The stock fell 28% so far this year, but rebounding from its lowest at Rp95 in June 15 alongwith the bank’s positive earnings in the first half (H1) of 2023.

Same old players. Almost all conventional energy players have ventured into renewable energy business. Sinarmas Group through PT Daya Sukses Makmur Selaras, an indirect subsidiary of Dian Swastatika Sentosa (DSSA) and PT Agra Surya Energi, partnered with Trina Solar to develop the first integrated solar cell and solar module manufacturing plant in Indonesia.

Aggressive development of land transportation infrastructure, particularly toll roads in Java and Sumatra plus possible expansion of high-speed train (HST) in Java Island, might change substantially the airline business in the coming years. Short-haul routes between big cities in Java Island, home to over 50% of population, might be the first to be affected. 

There were talks about possible merger between XL Axiata (EXCL) and SmartFren (FREN), currently third and fourth largest players in the telecommunication sector, few years ago at the back of merger of Indosat (ISAT) and Hutchison 3. The talks pushed their respective stock price to the last high at Rp3,170 and Rp150 each. Now EXCL is traded at Rp2,380, while FREN at Rp53.

United Tractors (UNTR)—a subsidiary of Astra International engaged in construction machinery supply, coal mining contracting, own coal business, power generation, and civil construction—has expanded into nickel-to-EV and renewable energy, but in the short-medium term the company’s traditional businesses—-machinery and mining contracting—-would remain main source of income. 

Golden Energy Mines (GEMS), one of coal mining companies owned by Sinar Mas Group, booked net profit of US$339.8 million in the first half (H1) of 2023, relatively flat compared to the corresponding period last year. Revenue grew 7.7% year on year (y/y) to US$1.4 billion, while operating profit declined 3.6% to US$431.4 million, due to higher expenses.

Coal miner Adaro Energy Indonesia (ADRO), co-owned by Edwin Soeryadjaya (Saratoga), TP Rachmat, Garibaldi ‘Boy’ Thohir, the family of the late Benny Subianto, remains the main source of cash for these families, whose ‘members’ Erick Thohir and Sandiaga Uno are tipped vice president candidate in 2024 election. 

Energy firm Pertamina Geothermal Energy (PGEO) said it has in August 20, 2023 signed a memorandum of understanding (MoU) with Africa Geothermal International No. 1 Limited (AGIL No. 1). While the global expansion is appreciated, investors await progress of domestic projects.