Indonesian coal mining companies are concerned that the novel corona virus (Covid-19) spreads might worsen the performance of the industry which has been relatively depressed as of late.
Investor Relations Manager of Samindo Resources Tbk PT (IDX: MYOH), Ahmad Zaki Natsir said the existence of this outbreak worsened the condition of the coal industry which was currently not healthy. Moreover, the origin of this virus was originally from China, which is the largest coal consumer. “This is certainly the impact of Chinese consumption will go down,” Ahmad said recently.
According to him, even before the outbreak of the corona virus, the condition of the coal industry was already considered severe. Therefore, in order to overcome the increasingly depressed coal industry due to corona virus, Samindo Resources has prepared a number of strategies to be carried out namely to implement cost efficiency to maintain profitability.
“We ourselves also carry out cost efficiencies, such as price negotiations with our vendors, optimization of tools and increasing discipline,” Ahmad said.
Meanwhile, Director of Bumi Resources Tbk PT (IDX: BUMI), Dileep Srivastava said that the corona virus has yet to have an impact on the company. Coal export activities continue normally. However, the company carries out strict supervision on vessel inspection standards to ensure that the ship is free and clean of viruses.
“We will continue to assess the impact of the corona virus on the market in the next quarter so that the company can consider anticipatory measures if needed,” he said. Bumi Resources still maintains coal production in accordance with the plan stipulated in the Budget Work Plan for both their subsidiaries, PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia.
Head of Corporate Communication Division of Adaro Energy Tbk PT (IDX: ADRO), Febriati Nadira said her company had not felt the direct impact of the outbreak of the corona virus on Adaro’s coal exports. The company has many customers in various countries with a balanced market portfolio so that Adaro has the flexibility to shift volumes if needed.
“Of Adaro’s total sales volume, 71 percent of sales volume is to the Southeast Asian & East Asian markets outside of China, while the sales volume to China in 2019 is 12 percent,” he said. Adaro also continue to believe in the long-term fundamentals of the coal market, which has the support of the Southeast Asian and South Asian regions. This is in line with their efforts to pursue economic development and improve the electricity sector.
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