Indonesia: Bumi Resources raises sales targets for CY’26

• BUMI’s full production quota reportedly approved by govt
• Lower production costs, slight price recovery expected in CY’26

Mysteel Global: Indonesia’s largest coal producer, PT Bumi Resources Tbk (BUMI), has set its coal sales target for 2026 at 76-78 million tonnes (mnt), up from its 2025 guidance of 73-75 mnt, the company said in its latest financial report released on 30 March.

The target is broadly in line with earlier expectations. BUMI director Maringan M. Ido Hotna Hutabarat had indicated early last December that total output would reach around 77-78 mnt, with subsidiary Kaltim Prima Coal (KPC) contributing about 53.5 mnt and Arutmin Indonesia adding 22-23 mnt.

BUMI, along with other major Indonesian producers such as Adaro and PT Bukit Asam has reportedly secured approval for its full production quota under the government’s work plan, albeit with stricter domestic market obligations (DMO). The required share of domestic supply has been raised from 25% to 30% of annual output, according to sources.

As Indonesia’s largest thermal coal exporter, BUMI primarily supplies key markets including China, India, and Southeast Asia, Mysteel Global learns.

In 2025, the company produced 74.8 mnt of coal, up marginally by 0.2% y-o-y, while sales slipped 2% to 74.6 mnt. The average selling price declined by 17% y-o-y to $59.7/tonne (t), the report noted.

For 2026, BUMI expects its average selling price to recover slightly to $60-62/t, while production cash costs are projected to decline to around $43-44/t, indicating potential margin improvement.

Financially, BUMI reported a net profit of $81 million in 2025, up 20.1% y-o-y. Total revenue rose 4.8% to $1.42 billion, of which coal accounted for $1.17 billion, or 82.5%, while the remaining $249.4 million came from its gold and silver operations.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.