IMA-Daily Update Page 1

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The race between PP Minerba and the PKP2B contract extension Arutmin, which one comes first? Adu Cepat PP Minerba dan Perpanjangan kontrak PKP2B Arutmin, mana lebih dulu? Antam pursues sales target of nickel ore to domestic smelters Antam Kejar Target Penjualan Bijih Nikel ke Smelter Domestik Until July 2020, Domestic Coal Absorption Reaches 73 Million Tons Hingga Juli 2020 Serapan Batu Bara Domestik Baru 73 Juta Ton PTBA Coal Sales Reaches 12.5 Million Tons in Semester I-2020 Penjualan Batu Bara PTBA Tembus 12,5 Juta Ton di Semester I- 2020 Vale projects $120 million in 2020 capital expenditure Aiming for Positive Performance This Year, Antam (ANTM) Formulates Strategies Incar Kinerja Positif Tahun Ini, Antam (ANTM) Utak-atik Strategi Due to Corona, PTBA Explores New Export Markets to 3 Countries Imbas Corona, PTBA Jajaki Pasar Ekspor Baru ke 3 Negara Projected coal production until 2024, continues to rise and will reach 628 million tons Proyeksi produksi batubara hingga 2024, terus naik dan akan tembus 628 juta ton Freeport asked to relax the smelter construction Freeport Minta Kelonggaran Pembangunan Smelter Three PKP2B Companies Apply For Extensions to IUPKs Tiga Perusahaan PKP2B Ajukan Perpanjangan Jadi IUPK ITMG Successfully Receives 87 Percent Coal Sales Contracts ITMG Berhasil Dapatkan Kontrak Penjualan Batubara

Kontan CNBC Indonesia Dunia Energi Media Indonesia The Jakarta Post Bisnis CNBC Indonesia Kontan CNN Indonesia Bisnis Dunia Tambang

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Sebesar 87 Persen Recommendation: INCO's bright prospects fueled by the increase in nickel prices and divestment Rekomendasi: Prospek INCO cerah tersulut kenaikan harga nikel dan divestasi On Fire, Coal Prices Rise Again Sedang On Fire, Harga Batu Bara Naik Lagi Freeport to ease lockdown in bid to end protest at Grasberg BHP CEO eyes JVs for future-facing commodities Nevada Copper restarts production at its underground Pumpkin Hollow project Mongolia's coal exports to China growing Chinese company takes over Canadian-owned Aurora Gold Mines

Kontan CNBC Indonesia Mining.com Australian Mining Metal Mining News Akipress Jamaica Observer

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IMA-Daily Update Page 3

The race between PP Minerba and the PKP2B contract extension

Arutmin, which one comes first? Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

THE GOVERNMENT , particularly the Ministry of Energy and Mineral Resources (MEMR), is racing against time. There are two urgent tasks, namely processing the extension of PT Arutmin Indonesia's contract and finalizing the derivative regulations of the new Minerba Law.

As is known, PT Arutmin Indonesia's Coal Mining Concession Work Agre ement (PKP2B) contract will expire on November 1, 2020. Arutmin has also applied for a license extension and a change in status from PKP2B to Special Mining Business Permit (IUPK) to continue operations.

At the same time, the government is also preparing three Draft Government Regu-lations (RPP) as implementing regulations for Law no. 3 of 2020 (Minerba Law).

The Director General of Mineral and Coal at the Ministry of EMR Ridwan Djamaluddin said that his party tried to issue a PP first, then decide to extend the permit for Arutmin Indonesia. At least, what should be finalized first is the PP which regulates the implementation of mineral and coal mining business activities.

"We are trying hard so that the PP is published first," said Ridwan when he was met after attending a hearing with Commission VII DPR RI, Thursday (27/8).

He said that currently his party was speeding up the evaluation of the extension request submitted by Arutmin. According to him,...

Adu Cepat PP Minerba dan Perpanjangan kontrak PKP2B

Arutmin, mana lebih dulu? Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

PEMERINTAH, khususnya Kementerian Energi dan Sumber Daya Mineral (ESDM) tengah berpacu dengan waktu. Ada dua pekerjaan yang mendesak, yakni memproses perpanjangan kontrak PT Arutmin Indonesia dan merampungkan aturan turunan Undang-Undang Minerba yang baru.

Seperti diketahui, kontrak Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B) PT Arutmin Indonesia akan berakhir pada 1 November 2020. Arutmin pun sudah meng-ajukan permohonan perpanjangan izin dan perubahan status dari PKP2B menjadi Izin Usaha Pertambangan Khusus (IUPK) kelan-jutan operasi.

Pada saat yang bersamaan, pemerintah juga sedang menyusun tiga Rancangan Peraturan Pemerintah (RPP) sebagai aturan pelaksanaan dari UU No. 3 Tahun 2020 (UU Minerba).

Direktur Jenderal Minerba Kementerian ESDM Ridwan Djamaluddin mengatakan, pihaknya berupaya untuk terlebih dulu menerbitkan PP, baru kemudian memutuskan perpanjangan izin bagi Arutmin Indonesia. Paling tidak, yang terlebih dulu dirampungkan adalah PP yang mengatur tentang pelaksanaan kegiatan usaha pertambangan minerba.

"Kita berusaha keras supaya PP-nya keluar dulu," kata Ridwan saat ditemui selepas menghadiri Rapat Dengar Pendapat dengan Komisi VII DPR RI, Kamis (27/8).

Dia bilang, saat ini pihaknya sedang mengebut evaluasi permohonan perpan-jangan yang diajukan Arutmin. Menurutnya,...

IMA-Daily Update Page 4

According to him, the evaluation conducted by the Directorate General of Mineral and Coal at the Ministry of EMR also considered input from related stakeholders, including the Indonesian Parliament.

"We are trying, as soon as possible, in September or October (Arutmin's decision to extend). But earlier there were directions to consider the input here (DPR). From our side, we will continue to do the best we can," Ridwan said.

Just so you know, PT Arutmin Indonesia (AI) has submitted a request for an extension through the letter of the President Director of PT AI Number 1036/AI/X/2019 dated 24 October 2019.

Currently, the request for AI extension has been processed by the Directorate General of Mineral and Coal, Ministry of EMR. The progress is, an evaluation of the application documents and company performance has been carried out. In Ridwan Djamaluddin's presentation when RDP was mentioned, based on the results of PT AI's performance evaluation, it was considered good. Currently the Directorate General of Mineral and Coal is conducting an evaluation process of the Whole Area Development Plan (RPSW).

Referring to Article 169 of Law Number 3 of 2020 (Minerba Law), Ridwan explained that the Contract of Work (KK) and PKP2B are guaranteed to be extended to become IUPK as a continuation of contract/agree-ment operations.

He said, contracts/agreements that have not received an extension are guaranteed to get two extensions in the form of IUPK as a continuation of contract operations/ agreements for a maximum period of 10 years by considering efforts to increase state revenue.

Menurutnya, evaluasi yang dilakukan Ditjen Minerba Kementerian ESDM juga mempertimbangkan masukan dari stake-holders terkait, termasuk DPR RI.

"Sedang kita upayakan, secepatnya, September atau Oktober (keputusan perpanjangan Arutmin). Tapi kan tadi ada arahan juga untuk mempertimbangkan masukan di sini (DPR). Dari sisi kami akan kerjakan terus sampai semaksimal mungkin," ujar Ridwan.

Asal tahu saja, PT Arutmin Indonesia (AI) sudah mengajukan permohonan perpan-jangan melalui Surat Presiden Direktur PT AI Nomor 1036/AI/X/2019 tanggal 24 Oktober 2019.

Saat ini, permohonan perpanjangan AI sudah diproses oleh Ditjen Minerba Kementerian ESDM. Progresnya, sudah dilakukan evaluasi atas dokumen per-mohonan dan kinerja perusahaan. Dalam paparan Ridwan Djamaluddin saat RDP disebutkan, berdasarkan hasil evaluasi kinerja PT AI dinilai baik. Saat ini Ditjen Minerba sedang melakukan proses evaluasi Rencana Pengembangan Seluruh Wilayah (RPSW).

Merujuk pada Pasal 169 Undang-Undang Nomor 3 Tahun 2020 (UU Minerba), Ridwan memaparkan bahwa Kontrak Karya (KK) maupun PKP2B diberikan jaminan perpanjangan menjadi IUPK sebagai kelanjutan operasi kontrak/ perjanjian.

Kata dia, kontrak/perjanjian yang belum memperoleh perpanjangan dijamin men-dapatkan dua kali perpanjangan dalam bentuk IUPK sebagai kelanjutan operasi kontrak/perjanjian masing-masing untuk jangka waktu paling lama 10 tahun dengan mempertimbangkan upaya peningkatan penerimaan negara.

IMA-Daily Update Page 5

"Efforts to increase state revenue are carried out through tax and PNBP revenues, and the area of the IUPK is in accordance with the RPSW approved by the Minister," Ridwan said.

In addition to these conditions, he continued, PKP2B that wish to continue into IUPK must carry out the development and/or utilization of coal in the country. Meanwhile, the Minister of EMR in granting IUPK as a continuation of operations considers a number of things. Namely the sustainability of operations, optimization of potential reserves in the context of conservation, as well as national interests.

"The Minister can reject the application for IUPK extension if the KK and PKP2B do not show good mining exploitation perfor-mance," Ridwan continued.

Meanwhile, currently there are 3 RPPs as regulations for the implementation of the Minerba Law which are currently being discussed by the government. First, the RPP regarding the implementation of mineral and coal mining business activities. Second, the RPP concerning mining areas, and third, the RPP concerning guidance and supervision as well as reclamation and post-mining in the implementation of mining business management.

Ridwan explained, the first RPP, is being discussed among related Ministries, including with the Coordinating Ministry for Marves, Ministry of Law and Human Rights, Ministry of State Secretariat, Ministry of Industry, Ministry of SOE, Ministry of Home Affairs, Ministry of Finance and BKPM. Meanwhile, the other two RPPs are sti ll being discussed internally at the EMR Ministry.

But on the other hand, the DPR RI wants to be involved in the preparation of this PP.

"Upaya peningkatan penerimaan negara

dilakukan melalui penerimaan pajak dan

PNBP, dan luas wilayah IUPK sesuai RPSW

yang disetujui Menteri," ujar Ridwan.

Selain syarat tersebut, lanjutnya, PKP2B

yang ingin berlanjut menjadi IUPK wajib

melaksanakan pengembangan dan/atau

pemanfaatan batubara di dalam negeri.

Sementara itu, Menteri ESDM dalam mem-

berikan IUPK sebagai kelanjutan operasi

mempertimbangkan sejumlah hal. Yakni

keberlanjutan operasi, optimalisasi potensi

cadangan dalam rangka konservasi, serta

kepentingan nasional.

"Menteri dapat menolak permohonan

perpanjangan IUPK apabila KK dan PKP2B

tidak menunjukkan kinerja pengusahaan

pertambangan yang baik," sambung

Ridwan.

Sementara itu, saat ini ada 3 RPP sebagai aturan pelaksanaan UU Minerba yang sedang dibahas pemerintah. Pertama, RPP tentang pelaksanaan kegiatan usaha pertambangan minerba. Kedua, RPP tentang wilayah pertambangan, dan ketiga, RPP tentang pembinaan dan pengawasan serta reklamasi dan pascatambang dalam penyelenggaraan pengelolaan usaha pertambangan.

Ridwan memaparkan, RPP pertama, sedang dilakukan pembahasan antar Kementerian terkait, antara lain dengan Kemenko Marves, Kemenkumham, Kemensetneg, Kemenperin, Kementerian BUMN, Kemendagri, Kemenkeu dan BKPM. Sedangkan dua RPP lainnya masih dalam pembahasan internal di Kementerian ESDM.

Namun di sisi lain, DPR RI ingin ikut di-libatkan dalam penyusunan PP ini.

IMA-Daily Update Page 6

"Commission VII DPR RI through the Director General of Minerba urges the Minister of EMR of the Republic of Indonesia so that before submitting all RPP derivatives of Law No.3 of 2020, discussions will be held between related Ministries/Institutions so that they will be presented to Commission VII DPR RI," said Deputy Chairman of Commission VII DPR RI, Eddy Soeparno read out the conclusion of the meeting.

Apart from that, Commission VII also urged the Director General of Mineral and Coal to evaluate the extension of the KK/PKP2B, the problem of area size, the obligation to reclamation and the realization of the smelter construction must be one of the bases in providing certainty for the extension of IUP, KK and PKP2B.

"Komisi VII DPR RI melalui Dirjen Minerba

mendesak Menteri ESDM RI agar sebelum

pengajuan seluruh RPP turunan UU No. 3

tahun 2020 dilakukan pembahasan antara

Kementerian/Lembaga terkait agar ter-

lebih dulu dipaparkan kepada Komisi VII

DPR RI," ungkap Wakil Ketua Komisi VII

DPR RI Eddy Soeparno membacakan

kesimpulan rapat.

Selain itu, Komisi VII juga mendesak Dirjen

Minerba agar dalam melakukan evaluasi

perpanjanagn KK/PKP2B, masalah luas

wilayah, kewajiban reklamasi dan realisasi

pembangunan smelter harus menjadi salah

satu dasar dalam memberikan kepastian

perpanjangan IUP, KK dan PKP2B.

Antam pursues sales target of nickel ore to domestic smelters

Monica Wareza, CNBC Indonesia

PT ANEKA Tambang Tbk (ANTM) this

year will prioritize the sale of nickel ore to domestic processing and refining plants (smelters) with reference to the metal mineral benchmark price (HPM) set by the government.

The company targets nickel ore sales to domestic smelters to reach 1 million wet metric ton (wmt), including the amount that will be produced at its own smelter and sold to other local companies.

"We are still pursuing a local sales target, plus minus 1 million (wmt). We will try to catch up with a nickel ore sales target this year. Because at the beginning of the year...

Antam Kejar Target Penjualan Bijih Nikel ke Smelter Domestik

Monica Wareza, CNBC Indonesia

PT ANEKA Tambang Tbk (ANTM) tahun ini akan memprioritaskan penjualan bijih nikel ke pabrik pengolahan dan pemurnian (smelter) di dalam negeri dengan mengacu pada harga patokan mineral (HPM) logam yang ditetapkan pemerintah.

Perusahaan menargetkan penjualan bijih nikel ke pabrik smelter di dalam negeri ini akan mencapai 1 juta wet metric ton (wmt), termasuk jumlah yang akan diproduksi di smelter sendiri dan dijual pada perusahaan lokal lainnya.

"Ada target penjualan lokal masih kami kejar, plus minus 1 juta (wmt) target pen-jualan bijih nikel akan coba kami kejar tahun ini. Karena di awal tahun...

IMA-Daily Update Page 7

Because at the beginning of the year we have not targeted it, but with the existing conditions we are trying to sell it locally with a reference price from the govern-ment. We are trying to produce and sell, not only for ourselves but also for local (other smelter companies)," said Aprilandi Hidayat Setia, Commerce Director of Aneka Tambang in a virtual press conference, Thursday (27/8/2020).

Meanwhile, for ferronickel, the company targets to produce as much as 27 thousand tons of nickel in ferronickel this year.

As for the first semester of 2020, the company has produced 1.37 million wmt of nickel ore, while last year nickel ore production reached 8.69 million wmt.

In terms of sales, in the January-June 2020 period, the company sold 167 thousand wmt, all of which could only be marketed in the second quarter of 2020. Throughout 2019, sales of nickel ore reached 7.62 million wmt.

For ferronickel, during the first six months of this year, it has produced 12,762 tons of nickel in ferronickel and sold 13,045 tons of nickel in ferronickel.

As a comparison, last year ferronickel production reached 25,713 tons of nickel in ferronickel and sales reached 26,212 tons of nickel in ferronickel.

The construction of a ferronickel smelter in East Halmahera is currently still in the construction phase. It is planned that this smelter will have a line capacity of 1: 13,500 TNi (tonnes of nickel) per year from phase I with a capacity of 27,000 TNi per year.

This development is estimated to cost Rp 3.5 trillion for line 1. This cost excludes the cost of generating electricity.

Karena di awal tahun belum ditargetkan, tapi dengan kondisi yang ada kami coba jual di lokal dengan harga acuan dari peme-rintah. Kami coba produksi dan penjualan, bukan cuma buat kami sendiri tapi juga lokal (perusahaan smelter lainnya)," kata Aprilandi Hidayat Setia, Direktur Commerce Aneka Tambang dalam konferensi pers virtual, Kamis (27/8/2020).

Sementara itu, untuk feronikel, perusahaan menargetkan bisa memproduksi sebanyak 27 ribu ton nikel dalam feronikel pada tahun ini.

Adapun hingga semester I-2020 perusahaan telah memproduksi bijih nikel sebanyak 1,37 juta wmt, sedangkan sepanjang tahun lalu produksi bijih nikel mencapai 8,69 juta wmt.

Dari segi penjualan, pada periode Januari-Juni 2020 perusahaan telah melakukan penjualan 167 ribu wmt yang seluruhnya baru bisa dipasarkan pada triwulan kedua 2020. Sepanjang 2019 penjualan bijih nikel mencapai 7,62 juta wmt.

Untuk feronikel, sepanjang enam bulan pertama tahun ini telah memproduksi 12.762 ton nikel dalam feronikel dan melakukan penjualan sebanyak 13.045 ton nikel dalam feronikel.

Sebagai perbandingan, tahun lalu produksi feronikel mencapai 25.713 ton nikel dalam feronikel dan penjualan mencapai 26.212 ton nikel dalam feronikel.

Adapun pembangunan smelter feronikel di Halmahera Timur saat ini masih berada dalam penyelesaian tahap konstruksi. Rencananya smelter ini nantinya akan memiliki kapasitas line 1:13.500 TNi (ton nikel) per tahun dari tahap I dengan kapasitas 27.000 TNi per tahunnya.

Pembangunan ini diperkirakan akan me-makan dana senilai Rp 3,5 triliun untuk line 1. Biaya ini di luar biaya pembangkit listrik.

IMA-Daily Update Page 8

As is known, the Ministry of Energy and Mineral Resources (MEMR) issued Ministerial Regulation (Permen) Number 11 of 2020 concerning the Third Amendment to Regulation of the Minister of EMR Number 07 of 2017 concerning Procedures for Determining Benchmark Prices for Metal Mineral and Coal Sales.

In this regulation, holders of Mining Business Permits (IUP) for metal mineral production operations and Special Mining Business Permits (IUPK) that produce nickel ore are required to adhere to the Mineral Reference Price (HPM).

The Ministerial Regulation, which was signed on April 13, 2020 and then promulgated on April 14, 2020, states that what is meant by HPM is the lower limit price in calculating the obligation to pay production fees by holders of Metal Mineral Production Operation IUP and Metal Mineral Production Operation IUPK.

Article 3 Paragraph 3 states that if the transaction is lower than HPM, it can still be done with a maximum limit of 3%. "If the transaction price is higher than HPM Logam in the quotation period according to the Reference Metal Mineral Price or there is a bonus for certain minerals, the sale must follow the transaction price above the HPM Logam," wrote the regulation in the Permen. (wia)

Seperti diketahui, Kementerian Energi dan Sumber Daya Mineral (ESDM) mengeluarkan Peraturan Menteri (Permen) ESDM Nomor 11 tahun 2020 tentang Perubahan Ketiga Atas Peraturan Menteri Energi dan Sumber Daya Mineral Nomer 07 tahun 2017 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batu bara.

Dalam aturan ini pemegang Izin Usaha Pertambangan (IUP) operasi produksi mineral logam dan Izin Usaha Pertam-bangan Khusus (IUPK) yang memproduksi bijih nikel wajib berpatokan pada Harga Patokan Mineral (HPM).

Permen yang ditandatangani tanggal 13 April 2020 lalu diundangkan pada 14 April 2020 menyebutkan, yang dimaksud dengan HPM adalah harga batas bawah dalam penghitungan kewajiban pembayaran iuran produksi oleh pemegang IUP Operasi Produksi Mineral Logam dan IUPK Operasi Produksi Mineral Logam.

Dalam Pasal 3 Ayat 3 disebutkan apabila dalam pelaksanaannya transaksi lebih rendah dari HPM tetap bisa dilakukan dengan batas maksimal 3%. "Apabila harga transaksi lebih tinggi dari HPM Logam pada periode kutipan sesuai Harga Mineral Logam Acuan atau terdapat bonus atas mineral tertentu, penjualan wajib mengikuti harga transaksi di atas HPM Logam," tulis aturan dalam Permen. (wia)

Until July 2020, Domestic Coal Absorption Reaches 73 Million Tons

Rio Indrawan

THE MINISTRY of Energy and Mineral Resources (MEMR) recorded that the realization of domestic coal absorption until the first month of semester II 2020 did not reach 50%. In the data,...

Hingga Juli 2020 Serapan Batu Bara Domestik Baru 73 Juta Ton

Rio Indrawan

KEMENTERIAN Energi dan Sumber Daya Mineral (ESDM) mencatatkan realisasi serapan batu bara dalam negeri hingga bulan pertama di semester II 2020 tidak mencapai 50%. Dalam data...

IMA-Daily Update Page 9

In the data, it is revealed that up to July the national coal absorption has only reached 73 million tons or only 47% of the target set at 155 million tons. Meanwhile, the realization of production up to July reached 323 million tons with coal exports reaching 238 million tons.

Ridwan Djamaluddin, Director General of Mineral and Coal at the Ministry of EMR, said that PT PLN (Persero) will still dominate coal use for power plants this year.

"109 million tonnes is PLN, then for refining processing 16.52 million tonnes, and fertilizer use 1.73 million tonnes. Then cement 14.54 million tons, textiles 6.54 million tons and paper needs 6.64 million tons," said Ridwan during a hearing with Commission VII DPR, Thursday (27/8).

For other coal Domestic Market Obligation (DMO) users, based on the data the growth is not significant. It is different if coal is for PLN where up to 2024 the increase is quite significant.

Next year, coal demand for PLN's power plants will reach 121 million tons, increasing again to 129 million tons in 2022, then 135 million tons in 2023 and in 2024 to 137 million tons.

"For next year, the total domestic demand for coal will reach 168.13 million tons," said Ridwan.

For this year's national coal production projection, it is targeted to reach 550 million tons, increase in 2021 to 609 million tons, of which 441 million tons will be exported for domestic purposes.

The government is targeting the increase in production not to be accompanied by an increase in exports because later it is projected that domestic use will continue to increase. Until 2024, coal exports will be held at the level of 441 million tons.

Dalam data terungkap realisasi hingga Juli serapan batu bara nasional baru mencapai 73 juta ton atau baru 47% dari target yang dipatok sebesar 155 juta ton. Sementara realisasi produksi sampai dengan Juli men-capai 323 juta ton dengan ekspor batu bara mencapai 238 juta ton.

Ridwan Djamaluddin, Direktur Jenderal Mineral dan Batu Bara Kementerian ESDM, mengatakan penggunaan batu bara untuk tahun ini tetap didominasi oleh PT PLN (Persero) untuk keperluan pembangkit listrik.

“109 juta ton itu PLN, lalu untuk pengolahan pemurnian 16,52 juta ton, dan pupuk penggunaannya 1,73 juta ton. Lalu semen 14,54 juta ton, tekstil 6,54 juta ton dan kertas kebutuhannya 6,64 juta ton,” kata Ridwan disela rapat dengar pendapat dengan Komisi VII DPR, Kamis (27/8).

Untuk pengguna Domestic Market Obligation (DMO) batu bara lainnya bedasarkan data yang ada pertumbuhannya memang tidak signifikan. Lain hal jika batu bara untuk PLN dimana hingga 2024 peningkatannya cukup signifikan.

Tahun depan kebutuhan batu bara untuk pembangkit listrik PLN mencapai 121 juta ton, meningkat lagi jadi 129 juta ton di tahun 2022, lalu menjadi 135 juta ton tahun 2023 dan tahun 2024 menjadi 137 juta ton.

“Untuk tahun depan sendiri total kebutuhan batu bara untuk dalam negeri mencapai 168,13 juta ton,” ujar Ridwan.

Untuk proyeksi produksi batu bara secara nasional tahun ini ditargetkan mencapai 550 juta ton meningkat pada 2021 menjadu 609 juta ton dimana 441 juta ton untuk ekspor sisanya untuk domestik.

Pemerintah menargetkan peningkatan produksi tersebut tidak diiringi dengan peningkatan ekspor karena nantinya di-proyeksi penggunaan dalam negeri akan terus meningkat. Hingga 2024 ekspor batu bara akan ditahan di level 441 juta ton.

IMA-Daily Update Page 10

For domestic use, it will increase after next year it is positioned at 168 million tons, domestic coal consumption is projected to reach 177 million tons in 2022 and then increase to 184 million tons in 2023 and in 2024 to 187 million tons.

Ridwan said the production projection is calculated based on the company's production capacity, domestic and export market needs, and economic growth. Then the export projection is calculated based on the needs of the export market.

"The domestic projection is calculated based on the increasing demand for coal in various domestic industrial sectors such as PLTU, cement industry, and smelters," Ridwan said.

Ramson Siagian, Deputy Chairperson of Commission VII DPR, emphasized that with large production until 2024 the govern-ment must ensure the availability of coal reserves. In addition, the export portion must be properly guarded so that it does not continue to creep up.

"Indeed, how much is the availability of reserves now. This is a huge production, 689 million tons. If it continues to be dredged, what will our generation be," he said.

Total Reserves

Sujatmiko, Director of Coal Business Development at the Ministry of EMR, said that based on data from the Geological Agency, the amount of coal reserves that are ready to be produced is still sufficient to accommodate the amount of production at the level of 600 million tons which can last for more than 60 years.

"It has become our coal reserves now at 37 billion tons. If the resources are 149 billion tons. It was enough for about 62 years," said Sujatmiko.

Untuk domestik penggunaannya akan ber-tambah setelah tahun depan diposisi 168 juta ton, konsumsi batu bara dalam negeri diproyeksi mencapai 177 juta ton pada tahun 2022 lalu naik menjadi 184 juta ton di tahun 2023 dan tahun 2024 menjadi 187 juta ton.

Ridwan mengatakan proyeksi produksi dihitung berdasarkan kapasitas produksi perusahaan, kebutuhan pasar dalam negeri dan ekspor, serta pertumbuhan ekonomi. Lalu proyeksi ekspor dihitung berdasarkan kebutuhan pasar ekspor.

“Proyeksi domestik dihitung berdasarkan peningkatan kebutuhan batubara pada berbagai sektor industri dalam negeri seperti PLTU, industri semen, dan smelter,” kata Ridwan.

Ramson Siagian, Wakil Ketua Komisi VII DPR, menegaskan dengan produksi yang besar hingga 2024 pemerintah harus memastikan ketersediaan cadangan batu bara. Selain itu porsi ekspor harus benar-benar dijaga untuk tidak terus merangkak naik.

“Memang berapa ketersediaan cadangan sekarang. Ini kan produksi besar sekali, 689 juta ton, kalau terus dikeruk habis dapat apa generasi kita nanti,” kata dia.

Jumlah Cadangan

Sujatmiko, Direktur Pembinaan Peng-usahaan Batu bara Kementerian ESDM, mengatakan berdasarkan data Badan Geologi jumlah cadangan batu bara yang sudah siap diproduksi masih cukup untuk mengkomodir jumlah produksi di level 600an juta ton yang bisa bertahan hingga lebih dari 60 tahun.

“Sudah menjadi cadangan batu bara kita sekarang 37 miliar ton. Kalau sumber daya 149 miliar ton. Tadi cukup sekitar 62 tahun,” kata Sujatmiko.

IMA-Daily Update Page 11

Based on data from the Geological Agency from coal resource data, the details for low calorie quality coal are 53.6 billion tons, medium calorie quality is 79.89 billion tons, high calorie 12.96 billion tons, and very high calorie 2.48 billion tons.

Kalimantan is the richest coal-rich region with 92.5 billion tonnes of resources and 24.7 billion tonnes of reserves. Then Sumatra coal resources reached 56.1 billion tons and reserves of 12.8 billion tons.

Meanwhile, for the island of Sulawesi, coal resources reached 74.25 million tons and reserves of 2.96 million tons. Java coal resources reached 62.45 million tons and reserves of 0.23 million tons. Papua and Maluku have coal resources of 135.84 million and 8.22 million tons, respectively.

Then for coal reserves consist of reserves estimated at 17.06 billion tons and proven reserves of 20.5 billion tons. The details are 14.4 billion tonnes of low calorie quality coal, 20.3 billion tonnes of medium calorie quality, 2.3 billion tonnes of high calorie, and 0.42 billion tonnes of very high calories. (RI)

Berdasarkan data Badan Geologi dari data sumber daya batu bara rinciannya untuk batu bara kualitas kalori rendah 53,6 miliar ton, kualitas kalori sedang 79,89 miliar ton, kalori tinggi 12,96 miliar ton, dan kalori sangat tinggi 2,48 miliar ton.

Kalimantan menjadi wilayah paling kaya batu bara dengan sumber daya sebesar 92,5 miliar ton dan cadangan sebesar 24,7 miliar ton. Kemudian Sumatra sumber daya batu bara mencapai 56,1 miliar ton dan cadangan sebesar 12,8 miliar ton.

Sementara untuk pulau Sulawesi sumber daya batu bara mencapai 74,25 juta ton dan cadangan 2,96 juta ton. Jawa sumber daya batu bara mencapai 62,45 juta ton dan cadangan sebesar 0,23 juta ton. Papua dan Maluku sumber daya batu bara masing-masing ada sumber daya batu bara sebesar 135,84 juta dan 8,22 juta ton.

Kemudian untuk cadangan batu bara terdiri dari cadangan terkira sebesar 17,06 miliar ton dan cadangan terbukti 20,5 miliar ton. Rinciannya batu bara kualitas kalori rendah 14,4 miliar ton, kualitas kalori sedang 20,3 miliar ton, kalori tinggi 2,3 miliar ton, dan kalori sangat tinggi 0,42 miliar ton. (RI)

PTBA Coal Sales Reaches 12.5 Million Tons in Semester I-2020

PT BUKIT Asam Tbk (“PTBA”) is still able to maintain the company's performance amid the Covid-19 pandemic and the continuing decline in coal prices in the first half of this year.

In a press statement on Friday (28/8), Apollonius Andwie C, Corporate Secretary of PT Bukit Asam Tbk, said that...

Penjualan Batu Bara PTBA Tembus 12,5 Juta Ton di Semester I- 2020

PT BUKIT Asam Tbk (“PTBA”) tetap mampu menjaga kinerja perusahaan di tengah pandemi Covid-19 dan terus turun-nya harga batu bara di semester pertama tahun ini.

Dalam keterangan pers, Jumat (28/8), Apollonius Andwie C, Sekretaris Per-usahaan PT Bukit Asam Tbk, mengatakan...

IMA-Daily Update Page 12

said that the company recorded a growth in export sales in the second quarter of 2020 compared to the previous quarter. So, for exports until June 2020 it reaches 5.2 million tons.

PTBA's coal exports reached 41.4% of total sales which reached 12.5 million tonnes by June 2020. Meanwhile, domestic coal sales are still the company's priority with a share of 58.6% or around 7.3 million tonnes.

"From the production side, PTBA was able to produce 11.9 million tons by June 2020 accompanied by the performance of coal transportation which also showed a positive performance. During the first semester of this year, it was recorded that coal transportation capacity reached 11.7 million tons," explained Apollonius.

"The company's maintained operational performance until the first semester of 2020 is none other than the result of the continuous application of operational excellence and market expansion which is the company's strategy in running its business this year," he said.

The impact of the Covid-19 pandemic entering the second quarter has indeed affected company performance. Especially in the face of price volatility and weakening demand for coal supplies due to this pandemic.

PTBA ensures that mining operations are still running in a disciplined manner following the health protocols set by the government, and continue to actively participate in fighting the Covid -19 outbreak that is currently hitting this country.

As of July 2020, according to Apollonius, PTBA has recorded more than 14.59 billion Rupiah in donations consisting of medical device assistance, direct assistance to...

mengatakan perusahaan mencatat adanya pertumbuhan penjualan ekspor di kuartal II-2020 dibandingkan dengan kuartal sebelumnya. Sehingga, untuk ekspor sampai Juni 2020 mencapai 5,2 juta ton.

Ekspor batu bara PTBA mencapai 41,4% dari penjualan keseluruhan yang mencapai 12,5 juta ton hingga Juni 2020. Sementara untuk penjualan batu bara domestik masih menjadi prioritas perusahaan dengan porsi sebanyak 58,6% atau sekitar 7,3 juta ton.

"Dari sisi produksi, PTBA mampu meng-hasilkan 11,9 juta ton hingga Juni 2020 diiringi dengan kinerja angkutan batu bara yang juga menunjukkan performa positif. Selama semester pertama tahun ini, ter-catat kapasitas angkutan batu bara men-capai 11,7 juta ton," jelas Apollonius.

"Masih terjaganya kinerja operasional perusahaan hingga semester I-2020 tak lain merupakan hasil dari penerapan operational excellence yang berkelanjutan dan perluasan pasar yang menjadi strategi perusahaan dalam menjalankan bisnis di tahun ini," tuturnya.

Dampak pandemi Covid-19 memasuki kuartal II memang berpengaruh terhadap kinerja perusahaan. Terutama dalam menghadapi volati litas harga dan melemahnya permintaan pasokan batu bara akibat pandemi ini.

PTBA memastikan operasional tambang sampai saat ini masih berjalan dengan disiplin mengikuti protokol kesehatan yang ditetapkan pemerintah, serta senantiasa berpartisipasi aktif dalam memerangi wabah Covid-19 yang tengah melanda negeri ini.

Hingga Juli 2020, menurut Apollonius, PTBA tercatat telah mengucurkan donasi sebanyak lebih dari 14,59 miliar Rupiah yang terdiri dari bantuan alat kesehatan, bantuan langsung ke...

IMA-Daily Update Page 13

direct assistance to the community and community, facilities and infrastructure to support health protocols, dissemination of prevention of the spread of Covid-19, and other.

Assistance to the community is provided not only for residents around the PTBA mining area in Muara Enim Regency, Lahat Regency, and Prabumulih City. But also for residents in other provinces in Sumatra through the Incidental Ministry of State-Owned Enterprises (SOEs) Assignment.

Until now, PTBA has been actively providing socialization to employees and the public to prevent the spread of Covid-19. Starting from getting used to washing hands, using masks, maintaining distance, etiquette when coughing/sneezing, and others.

"This socialization effort is also accompanied by the distribution of masks, which up to July 2020 reached 293,696 masks according to the Ministry of Health's standards. Masks are made by local business actors as an effort to empower the economy of the environment around the company," said Apollonius. (OL-09)

bantuan langsung ke masyarakat maupun komunitas, sarana dan prasarana untuk mendukung protokol kesehatan, sosialisasi pencegahan penyebaran Covid-19, dan lainnya.

Bantuan kepada masyarakat diberikan tidak hanya untuk warga sekitar area pertam-bangan PTBA yang berada di Kabupaten Muara Enim, Kabupaten Lahat, dan Kota Prabumulih. Namun juga untuk warga yang berada di provinsi lainnya di Sumatra melalui Penugasan Kementerian Badan Usaha Milik Negara (BUMN) Bina Ling-kungan Insidentil.

Secara aktif sampai saat ini, PTBA terus memberikan sosialisasi kepada pegawai dan masyarakat untuk mencegah penyebaran Covid-19. Mulai dari membiasakan cuci tangan, menggunakan masker, menjaga jarak, etika saat batuk/bersin, dan lainnya.

"Upaya sosialisasi ini juga disertai dengan pembagian masker yang hingga Juli 2020 mencapai 293.696 masker yang sesuai standar Kementerian Kesehatan. Masker dibuat oleh para pelaku usaha lokal, sebagai upaya pemberdayaan ekonomi lingkungan sekitar perusahaan," papar Apollonius. (OL-09)

Vale projects $120 million in 2020 capital expenditure Norman Harsono | The Jakarta Post

TOP nickel matte producer PT Vale Indonesia expects to spend about US$120 million on capital this year, lower than initially expected, primarily because of a project delay.

Vale had sought to spend less than $166.6 million this year on capital but further lowered its projection after delaying a plan to rebuild part of its Sorowako nickel smelter in Sulawesi, the country’s nickel mining heartland.

The company moved the start of five-month project from the fourth quarter of this year to the second quarter of next year as a result of logistical delays during the pandemic.'

“This will, of course, affect our production next year,” said Vale chief financial officer Bernardus Irmanto at an online public meeting on Wednesday.

IMA-Daily Update Page 14

Vale, which is traded on the Indonesian Stock Exchange (IDX) under the symbol INCO, disbursed $77.3 million from January to June.

As a result of the delay, Vale expects to produce more nickel matte this year than initially expected. The new production target is 73,700 tons, up 4 percent from earlier this year, when the plan to rebuild the smelter was still on track.

Vale saw its net profit rise to $53.12 million in the first half of the year, turning around a $26.17 million loss from the same period last year, the company’s financial report shows.

Bernadus added that Vale was continuing talks with regulators, lenders and partners to begin developing multimillion dollar smelters in Pomalaa, Southeast Sulawesi, and in Bahadopi, Central Sulawesi. He expected Pomalaa’s Final Investment Decision (FID) by the first half of next year.

“Their progress is more or less the same,” he said, noting that Bahadopi was “slightly behind Pomalaa in terms of permits”.

Aiming for Positive Performance This Year, Antam (ANTM)

Formulates Strategies Finna U. Ulfah

MINERAL mining issuer, PT Aneka

Tambang Tbk., Is tweaking its strategy to score a positive performance this year amidst the sentiment of the Covid-19 pandemic.

Commercial Director of Aneka Tambang Apriliandi Hidayat Setia said that the company's focus this year is focused on the company's three core commodities, namely ferronickel, gold and bauxite, each of which has a different strategy.

For ferronickel, the issuer coded as ANTM shares will change the composition of the export market, which was initially focused on India by 30 percent, but has now been transferred to China. This is in line with the Panda Country's economic growth, which appears to have a faster recovery process compared to India.

Incar Kinerja Positif Tahun Ini, Antam (ANTM) Utak-atik

Strategi Finna U. Ulfah

EMITEN pertambangan mineral, PT Aneka

Tambang Tbk., mengutak-atik strategi untuk mencetak kinerja positif pada tahun ini di tengah sentimen pandemi Covid-19.

Direktur Niaga Aneka Tambang Apriliandi Hidayat Setia mengatakan bahwa fokus perseroan pada tahun ini tertuju pada tiga

komoditas inti perseroan, yaitu feronikel, emas, dan bauksit, yang masing-masing memiliki strategi yang berbeda.

Untuk feronikel, emiten berkode saham ANTM itu akan mengubah komposisi pasar ekspor yang semula sebesar 30 persen difokuskan kepada India, kini dialihkan ke China. Hal itu seiring dengan pertumbuhan ekonomi Negeri Panda itu tampak lebih cepat proses pemulihannya dibandingkan dengan India.

IMA-Daily Update Page 15

"We want to focus there again, and prices have started to go upward, so we are sure that we will support our ferronickel business line," said April during a press conference for Pubex Live 2020, Thursday (27/8/2020).

In addition, even though the nickel ore export ban policy was implemented since the beginning of this year, the company will continue to take advantage of domestic market demand and not only be absorbed by the company's factories.

For the bauxite commodity, the company will also continue to boost exports according to the quota.

Meanwhile, for gold, the company will focus more on the domestic market this year to support the achievement of ANTM's gold sales target this year of around 18 tons.

April explained that the company saw a great opportunity in the domestic market in line with the increase in global gold prices to an all-time high, which made the public begin to be educated to see gold as a safe haven asset and invest in precious metals.

On the other hand, ANTM also applies efficiency, one of which is by keeping production costs quite low. ANTM managed to have a cash cost of ferronickel production of US$ 3.33 per pound as of June 2020.

For information, based on a study by consultant Wood Mackenzie, the achieve-ment of ANTM's production cash cost is below the average global ferronickel producer in the range of US$ 4.85 per pound, so the company has succeeded in strengthening its position as one of the low-cost global ferronickel producers.

In addition, until June 2020 the company has also kept the cash cost of gold production at the Pongkor mine at US$ 975 per troy ounce, when the average global gold price was around US$ 1,648 per troy ounce.

“Kami mau fokus ke sana lagi, dan harga sudah mulai upward sehingga kami yakin akan mendukung lini bisnis feronikel kami,” ujar April saat konferensi pers Pubex Live 2020, Kamis (27/8/2020).

Selain itu, meski kebijakan larangan ekspor bijih nikel diterapkan sejak awal tahun ini, perseroan akan tetap memanfaatkan per-mintaan pasar domestik dan tidak hanya diserap untuk pabrik milik perseroan.

Untuk komoditas bauksit, perseroan juga tetap akan menggenjot ekspor sesuai dengan kuota.

Sementara itu, untuk komoditas emas perseroan pada tahun ini akan lebih fokus terhadap pasar domestik untuk mendukung pencapaian target penjualan emas ANTM tahun ini di kisaran 18 ton.

April menjelaskan bahwa perseroan melihat peluang besar di pasar domestik seiring dengan kenaikan harga emas global hingga menyentuh level tertinggi sepanjang masa, yang membuat masyarakat mulai teredukasi untuk melihat emas sebagai aset safe haven dan berinvestasi logam mulia.

Di sisi lain, ANTM juga menerapkan efisiensi, salah satunya dengan tetap menjaga biaya produksi cukup rendah. ANTM berhasil memiliki biaya tunai produksi feronikel sebesar US$3,33 per pon hingga Juni 2020.

Untuk diketahui, berdasarkan studi konsultan Wood Mackenzie, capaian biaya tunai produksi ANTM itu berada di bawah rata-rata produsen feronikel global di kisaran US$4,85 per pon, sehingga per-seroan berhasil mengukuhkan posisinya sebagai salah satu produsen feronikel global berbiaya rendah.

Selain itu, hingga Juni 2020 perseroan juga telah menjaga biaya tunai produksi emas di tambang Pongkor sebesar US$975 per troy ounce, ketika rata-rata harga emas global di kisaran US$1.648 per troy ounce.

IMA-Daily Update Page 16

"We are also negotiating with our banking creditors, suppliers, to internal efficiency in each business unit, including the head office," said April.

Meanwhile, Mirae Asset Sekuritas Indonesia analyst Andy Wibowo Gunawan said that his party maintains the company's estimated revenue this year of Rp 25.4 trillion, down 22.5 percent on an annual basis.

However, ANTM is believed to be able to record a growth of 7.1 percent in net profit this year to Rp208 billion.

"By maintaining this estimate, we recommend holding for ANTM with an unchanged target price of Rp. 655," Andy said as quoted in his research publication, Thursday (27/8/2020).

Based on Bloomberg consensus, 12 out of 17 analysts recommend buying, 4 recommending a hold, and 1 other recommending selling. Editor: Aprianto

Cahyo Nugroho

“Kami juga negosiasi dengan para kreditur perbankan kami, supplier, hingga efisiensi internal di setiap unit bisnis, termasuk kantor pusat,” papar April.

Adapun, Analis Mirae Asset Sekuritas Indonesia Andy Wibowo Gunawan mengata-kan bahwa pihaknya mempertahankan estimasi pendapatan perseroan tahun ini sebesar Rp25,4 triliun, turun 22,5 persen secara tahunan.

Kendati demikian, ANTM diyakini dapat mencetak pertumbuhan 7,1 persen laba bersih pada tahun ini menjadi sebesar Rp208 miliar.

“Dengan mempertahankan estimasi itu, maka kami merekomendasikan hold untuk ANTM dengan target price yang tidak berubah di Rp655,” ujar Andy seperti dikutip dari publi-kasi risetnya, Kamis (27/8/2020).

Berdasarkan konsensus Bloomberg, dari 17 analis sebanyak 12 analis memberikan reko-mendasi beli, sebanyak 4 analis merekomen-dasikan hold, dan 1 lainnya merekomendasi-kan jual. Editor : Aprianto Cahyo Nugroho

Due to Corona, PTBA Explores New Export Markets to 3

Countries Syahrizal Sidik, CNBC Indonesia

THE COVID-19 pandemic caused a decrease in new demand for coal both in the domestic and export markets. The state-owned coal mining company, PT Bukit Asam Tbk (PTBA), is getting around the weakening demand by targeting new export markets to Australia, Vietnam and Brunei Darussalam.

Imbas Corona, PTBA Jajaki Pasar Ekspor Baru ke 3 Negara

Syahrizal Sidik, CNBC Indonesia

PANDEMI Covid-19 menyebabkan penu-

runan permintaan baru bara baik di pasar

domestik maupun pasar ekspor. Emiten

pertambangan batu bara BUMN, PT Bukit

Asam Tbk (PTBA) menyiasati pelemahan

permintaan tersebut dengan menyasar

pasar ekspor baru ke Australia, Vietnam

dan Brunei Darussalam.

IMA-Daily Update Page 17

PTBA's Finance Director, Mega Satria said, the decline in export demand was due to the regional quarantine (lockdown) policies in several countries in the second quarter of this year.

"This has an impact on coal demand. We are doing cost efficiency and trying to expand new markets in order to reduce the impact of a reduction in coal prices," said

Mega, in a public expose in Jakarta, Thursday (27/8/2020).

Meanwhile, regarding the long-standing export markets such as China and India which currently import the majority of Indonesian coal commodities, the company will still monitor developments in these countries.

"We are making efforts to enter new markets in Australia, Brunei Darussalam,

Vietnam," he said.

For information, amid the decline in new coal prices, PTBA recorded a growth in export sales in the second quarter of 2020 compared to the previous quarter. So, for exports until June 2020 it reaches 5.2 million tons.

PTBA's coal exports reached 41.4% of total sales which reached 12.5 million tonnes by June 2020. Meanwhile, domestic coal sales

are still the company's priority with a share of 58.6% or around 7.3 million tonnes.

From the production side, PTBA is able to produce 11.9 million tons by June 2020 accompanied by the performance of coal transportation which also shows a positive performance. During the first semester of this year, coal transportation capacity was recorded at 11.7 million tons. (hps/hps)

Direktur Keuangan PTBA, Mega Satria menuturkan, penurunan permintaan ekspor disebabkan karena kebijakan karantina wilayah (lockdown) di beberapa negara pada kuartal kedua tahun ini.

"Ini memberikan dampak terhadap permintaan batu bara. Kami melakukan efisiensi biaya dan berupaya melakukan ekspansi pasar baru agar dapat mengu-rangi dapak penurunan harga batu bara," kata Mega, dalam paparan publik di Jakarta, Kamis (27/8/2020).

Sementara itu, mengenai pasar ekspor yang sudah lama seperti China dan India yang saat ini masih menjadi pengimpor mayoritas komoditas batu bara asal Indonesia, perseroan masih akan mencermati perkembangan di negara tersebut.

"Kami lakukan upaya masuk ke pasar baru Australia, Brunei Darussalam, Vietnam," katanya.

Sebagai informasi, di tengah penurunan harga baru bara, PTBA mencatatkan adanya pertumbuhan penjualan ekspor di kuartal II-2020 dibandingkan dengan kuartal sebelumnya. Sehingga, untuk ekspor sampai Juni 2020 mencapai 5,2 juta ton.

Ekspor batu bara PTBA mencapai 41,4% dari penjualan keseluruhan yang mencapai 12,5 juta ton hingga Juni 2020. Sementara untuk penjualan batu bara domestik masih menjadi prioritas perusahaan dengan porsi sebanyak 58,6% atau sekitar 7,3 juta ton.

Dari sisi produksi, PTBA mampu meng-hasilkan 11,9 juta ton hingga Juni 2020 diiringi dengan kinerja angkutan batu bara yang juga menunjukkan performa positif. Selama semester pertama tahun ini, ter-catat kapasitas angkutan batu bara men-capai 11,7 juta ton. (hps/hps)

IMA-Daily Update Page 18

Projected coal production until 2024, continues to rise and will

reach 628 million tons Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

THE MINISTRY of Energy and Mineral Resources (MEMR) explained the projection of coal production until 2024. Based on this calculation, it is estimated that coal production will continue to increase every year.

Director General of Mineral and Coal at the Ministry of EMR Ridwan Djamaluddin revealed that this year's coal production target is set at 550 million tons. Next year, the black gold commodity production is projected to skyrocket to 609 million tons.

In 2022, Ridwan continued, the national coal production is estimated at 618 million tons. A year later, it increased again to 625 million tons. Then it will be 628 million tons in 2024. Ridwan said, the production projection is calculated with various considerations.

"The projection of production is calculated based on the company's production capacity, domestic and export market needs, as well as economic growth," Ridwan said in a hearing held by Commission VII DPR RI, Thursday (27/8).

Not only from the production side, the Ministry of EMR has also projected export and domestic volumes. This year, the projected export is 395 million tons. Meanwhile, the allocation to the domestic market was 155 million tons.

Meanwhile, from 2021 to 2024, the volume of coal exports is projected to stagnate at the level of 441 million tons. However,...

Proyeksi produksi batubara hingga 2024, terus naik dan

akan tembus 628 juta ton Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

KEMENTERIAN Energi dan Sumber Daya Mineral (ESDM) memaparkan proyeksi produksi batubara hingga tahun 2024. Berdasarkan hitungan tersebut, produksi batubara ditaksir bakal terus menanjak setiap tahunnya.

Direktur Jenderal Mineral dan Batubara Kementerian ESDM Ridwan Djamaluddin mem-beberkan, target produksi batubara pada tahun ini dipatok 550 juta ton. Tahun depan, produksi komoditas emas hitam itu diproyeksikan bakal meroket ke angka 609 juta ton.

Pada tahun 2022, sambung Ridwan, produksi batubara nasional ditaksir 618 juta ton. Setahun kemudian, naik lagi menjadi 625 juta ton. Lalu menjadi 628 juta ton pada tahun 2024. Kata Ridwan, proyeksi produksi tersebut dihitung dengan berbagai pertim-bangan.

"Proyeksi produksi dihitung berdasarkan kapasitas produksi perusahaan, kebutuhan pasar dalam negeri dan ekspor, serta pertumbuhan ekonomi," sebut Ridwan dalam Rapat Dengar Pendapat yang digelar Komisi VII DPR RI, Kamis (27/8).

Tak hanya dari sisi produksi, Kementerian ESDM juga telah memproyeksikan volume ekspor dan domestik. Pada tahun ini proyeksi ekspor sebesar 395 juta ton. Sedangkan alokasi ke pasar domestik sebesar 155 juta ton.

Sedangkan tahun 2021 hingga 2024, volume ekspor batubara diproyeksikan stagnan di level 441 juta ton. namun,....

IMA-Daily Update Page 19

However, it is estimated that domestic coal demand will continue to increase. In 2021, the projected domestic coal absorption will reach 168 million tonnes. A year later, it is estimated to have increased to 177 million tons. In 2023 it is predicted that it will be 184 million tons, then 187 tons in 2024.

The projection for domestic coal demand, said Ridwan, is calculated based on the

increase in coal demand in various domestic industrial sectors such as PLTU, cement industry, and smelters. Meanwhile, the export projection is calculated based on market needs.

Namun, kebutuhan batubara domestik ditaksir terus meningkat. Pada tahun 2021, proyeksi serapan batubara domestik men-capai 168 juta ton. Setahun kemudian, ditaksir naik menjadi 177 juta ton. Pada 2023 diprediksi sebesar 184 juta ton, lalu menjadi 187 ton pada 2024.

Untuk proyeksi kebutuhan batubara domestik, kata Ridwan, dihitung ber-

dasarkan peningkatan kebutuhan batubara pada berbagai sektor industri dalam negeri seperti PLTU, industri semen, dan smelter. Sedangkan proyeksi ekspor dihitung ber-dasarkan kebutuhan pasar.

Freeport asked to relax the smelter construction

PT FREEPORT Indonesia asked for the

leniency of the smelter construction completion target due to the corona virus pandemic. The initial target for the smelter construction to be completed in late 2023.

Deputy President Director of PT Freeport Indonesia Jenpino Ngabdi said that the progress of the smelter located in Gresik, East Java has only reached 5.86 percent of the target of 10.5 percent. So, he asked for a leeway for a year until 2024.

Jenpino said that the contractor stated that he was unable to force it to finish in December 2023 because the project had been delayed for 6 months. Another obstacle is that not all vendors have offered final prices to Freeport due to the impact of restrictions in the vendor's country of origin.

Freeport Minta Kelonggaran Pembangunan Smelter

PT FREEPORT Indonesia meminta

kelonggaran target penyelesaian pem-bangunan smelter karena pandemi virus corona. Target awal pembangunan smelter rampung pada 2023 akhir.

Wakil Presiden Direktur PT Freeport Indonesia Jenpino Ngabdi menyebut progres smelter yang berlokasi di Gresik, Jawa Timur ini baru mencapai 5,86 persen dari target 10,5 persen. Sehingga, dia meminta kelonggaran setahun hingga 2024.

Jenpino menyebut kontraktor menyatakan tidak sanggup jika harus dipaksakan selesai pada Desember 2023 karena sudah 6 bulan proyek tertunda. Kendala lainnya, belum semua vendor menawarkan harga final kepada Freeport akibat dampak dari pembatasan di negara asal vendor.

IMA-Daily Update Page 20

"In terms of time due to the postponement of Covid-19, it has been running for approxi-mately 6 months. So that if it is forced at the end of 2023, the EPC Contractor states that it is unable to complete, so a new schedule revision is needed," he said at the hearing (RDP) with the Commission. VII DPR RI, Thursday (27/8).

However, the DPR RI did not respond to Jenpino's request.

Rudy Mas'ud, a member of the Golkar party faction, said that the pandemic should not have been the reason for the delay in the Freeport smelter. He assessed that Freeport could not take a unilateral decision because the company's ownership involved various parties from the government, foreigners, to the regional government.

If it continues to be postponed, he is also worried that natural pollution in Papua will continue and harm the surrounding community.

"I hope that Covid-19 is not the reason for the obstacles to the construction of the Freeport smelter. It is not very gentlemen, this is not an agreement between Freeport but multilateral," he said.

Likewise, a member of commission VII from the Nasdem party faction, Rico Sia, questioned this interest. He suspects that there are other parties who want to postpone the smelter, because with a year-long delay the biggest loss will be borne by the government.

"If so (the share of the development is shared), it should not be postponed to 2024, because it will be very detrimental to Indonesia, especially since there is such a large loan," he said.

Previously, Freeport took a loan worth US$ 2.8 billion, equivalent to Rp 32.9 trillion (referring to the exchange rate of Rp 14 thousand) to finance the construction of a smelter in the Java Integrated Industrial and Port Estate (JIIPE) in Gresik. This is because...

"Dari sisi waktu akibat penundaan covid-19 sudah berjalan kurang lebih 6 bulan penundaan. Sehingga apabila dipaksakan pada akhir 2023, EPC Contractor menyata-kan tidak sanggup untuk menyelesaikan, sehingga dibutuhkan revisi jadwal yang baru," katanya pada rapat dengar pendapat (RDP) dengan Komisi VII DPR RI, Kamis (27/8).

Namun, permintaan Jenpino tak ditanggapi baik oleh DPR RI.

Anggota dari fraksi partai Golkar Rudy Mas'ud menyatakan tak seharusnya pandemi menjadi alasan molornya smelter Freeport. Ia menilai Freeport tak bisa mengambil keputusan sepihak karena kepe-milikan perusahaan menyangkut berbagai pihak dari pemerintah, asing, hingga Pemda.

Jika terus ditunda, ia juga khawatir pence-maran alam di Papua akan terus berlanjut dan merugikan masyarakat sekitar.

"Saya berharap covid-19 bukan jadi alasan hambatan pembangunan smelter Freeport. Tidak gentlemen sekali, ini bukan perjanjian antara Freeport tapi multilateral," ucapnya.

Senada, anggota komisi VII dari fraksi partai Nasdem Rico Sia mempertanyakan kepen-tingan tersebut. Ia menduga ada pihak lain yang menginginkan penundaan smelter, sebab dengan penundaan selama setahun kerugian paling besar akan ditanggung oleh pemerintah.

"Kalau begitu (porsi pembangunan di-tanggung bersama), tidak boleh diundur ke 2024, karena akan sangat merugikan Indonesia apalagi ada pinjaman yang begitu besar," katanya.

Sebelumnya Freeport mengambil pinjaman senilai US$2,8 miliar setara Rp32,9 triliun (mengacu kurs Rp14 ribu) untuk membiayai pembangunan smelter di Java Integrated Industrial and Port Estate (JIIPE) di Gresik. Sebab,...

IMA-Daily Update Page 21

This is because the refining facility project requires an investment of US$ 3 billion.

Crowded with being rejected, the meeting led by Eddy Soeparno was finally rescheduled for an undetermined time. (wel/age)

Sebab, proyek fasilitas pemurnian mem-butuhkan investasi sebesar US$3 miliar.

Ramai ditolak, RDP yang dipimpin oleh Eddy Soeparno tersebut akhirnya dijadwal ulang dalam waktu yang belum ditentukan. (wel/age)

Three PKP2B Companies Apply For Extensions to IUPKs

Denis Riantiza Meilanova

THE MINISTRY of Energy and Mineral

Resources (MEMR) noted that until August 2020, there were three Coal Mining Work Agreement (PKP2B) companies that applied for an extension to a Special Mining Business License (IUPK) to continue operations.

Based on the material presented by the Director General of Mineral and Coal at the Ministry of EMR in a hearing with Commission VII DPRI RI, Thursday (27/8/2020), of the seven PKP2B

companies that are about to expire, the three companies that have proposed an extension are PT Arutmin Indonesia on October 24. 2019, PT Kaltim Prima Coal on March 30, 2020, and most recently PT

Multi Harapan Utama on June 29, 2020.

The EMR Ministry is still evaluating the applications of the three companies. For PT Arutmin Indonesia, the Ministry of EMR has evaluated the application documents and company performance. Based on the results of the evaluation, Arutmin's performance is considered good. Currently, the Ministry of EMR is conducting the evaluation process of Arutmin's entire area

development plan (RPSW).

Tiga Perusahaan PKP2B Ajukan Perpanjangan Jadi IUPK

Denis Riantiza Meilanova

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) mencatat hingga Agustus 2020, terdapat tiga perusahaan Perjanjian Karya Pertambangan Baru Bara (PKP2B) yang mengajukan permohonan perpan-jangan menjadi Izin Usaha Pertambangan

Khusus (IUPK) untuk melanjutkan operasi.

Berdasarkan bahan paparan Direktur Jenderal Minerba Kementerian ESDM dalam rapat dengar pendapat dengan Komisi VII DPRI RI, Kamis (27/8/2020), dari tujuh perusahaan PKP2B yang akan habis masa kontrak, tiga perusahaan yang telah mengajukan perpanjangan adalah PT Arutmin Indonesia pada 24 Oktober 2019, PT Kaltim Prima Coal pada 30 Maret 2020, dan yang terbaru PT Multi Harapan Utama

pada 29 Juni 2020.

Kementerian ESDM masih melakukan evaluasi permohonan ketiga perusahaan tersebut. Untuk PT Arutmin Indonesia, Kementerian ESDM telah melakukan evaluasi atas dokumen permohonan dan kinerja perusahaan. Berdasarkan hasil evaluasi kinerja Arutmin dinilai baik. Saat ini, Kementerian ESDM tengah melaukan proses evaluasi rencana pengembangan

seluruh wilayah (RPSW) Arutmin.

IMA-Daily Update Page 22

Meanwhile, for PT Kaltim Prima Coal and PT Multi Harapan Utama, the Ministry of EMR is evaluating the application documents.

The Director General of Mineral and Coal of the Ministry of EMR Ridwan Djamaluddin explained based on Article 169 of Law No. 3/2020 (Minerba Law), holders of Contract of Work (KK) and PKP2B are guaranteed an extension to an IUPK as a continuation of contract or agreement operations.

"Contracts or agreements that have not received an extension are guaranteed to get two extensions in the form of IUPK as a continuation of contract operations or agreements for a maximum period of 10 years by considering efforts to increase state revenues," he said.

He said, the Minister of EMR in granting IUPK as a continuation of operations considers a number of aspects, namely operational sustainability, optimization of potential reserves in the context of conservation, as well as national interests.

"The minister can reject the application for IUPK extension if the KK and PKP2B do not show good mining exploitation perfor-mance," he said.

Member of Commission VII DPR RI Maman Abdurrahman asked the Ministry of EMR to immediately provide confirmation regarding the contract extension. Because, according to him, one of the objectives of the DPR to accelerate the discussion of the Minerba Law is to provide investment certainty for entrepreneurs that can increase the potential for state revenue and guarantee employment.

"Legal certainty, employment oppor-tunities, and key words for state revenue are in these seven (PKP2B). In advance, certainty must be given. If there are several things,...

Adapun, untuk PT Kaltim Prima Coal dan PT Multi Harapan Utama, Kementerian ESDM sedang melakukan evaluasi dokumen per-mohonan.

Direktur Jenderal Minerba Kementerian ESDM Ridwan Djamaluddin memaparkan berdasarkan Pasal 169 Undang-Undang No. 3/2020 (UU Minerba), pemegang Kontrak Karya (KK) dan PKP2B diberikan jaminan perpanjangan menjadi IUPK sebagai kelan-jutan operasi kontrak atau perjanjian.

"Kontrak atau perjanjian yang belum mem-peroleh perpanjangan dijamin mendapat-kan dua kali perpanjangan dalam bentuk IUPK sebagai kelanjutan operasi kontrak atau perjanjian masing-masing untuk jangka waktu paling lama 10 tahun dengan mem-pertimbangkan upaya peningkatan pene-rimaan negara," ujarnya.

Dia menuturkan, Menteri ESDM dalam memberikan IUPK sebagai kelanjutan operasi mempertimbangkan sejumlah aspek, yakni keberlanjutan operasi, optimalisasi potensi cadangan dalam rangka konservasi, serta kepentingan nasional.

"Menteri dapat menolak permohonan per-panjangan IUPK apabila KK dan PKP2B tidak menunjukkan kinerja pengusahaan pertambangan yang baik," katanya.

Anggota Komisi VII DPR RI Maman Abdurrahman meminta Kementerian ESDM segera memberikan kepastian mengenai perpanjangan kontrak tersebut. Sebab, menurutnya, salah satu tujuan DPR men-dorong percepatan pembahasan UU Minerba adalah untuk memberikan kepastian investasi bagi pengusaha yang bisa meningkatkan potensi pendapatan negara serta jaminan lapangan kerja.

"Kepastian hukum, lapangan pekerjaan, dan pendapatan negara kata kuncinya ada di tujuh (PKP2B) ini. Jauh-jauh hari harus diberi kepastian. Kalau memang ada beberapa hal,...

IMA-Daily Update Page 23

If there are several things, for example waiting for PP (Government Regulation), it is necessary to find a solution so that there is a guarantee handle," he said.

Meanwhile, Member of Commission VII DPR RI Awang Faroek Ishak asked the Ministry of EMR to consider evaluating the extension request.

"Of the seven PKP2Bs, if I add up the area, the area is extraordinary. This can be considered in the process of evaluating requests for extension if they submit. I think there is a lot of overlap with productive land for agriculture and conservation areas," said Awang.

In the conclusion of the meeting, Commission VII DPR RI urged the Director General of Mineral and Coal of the Ministry of EMR to evaluate the extension of KK and PKP2B, the problem of area size, recla-mation obligations, and the realization of smelter construction related to the progress of smelter construction must be one of the bases in providing certainty for extension of IUP, KK, and PKP2B. Editor: Rio Sandy Pradana

Kalau memang ada beberapa hal, misal menunggu PP (Peraturan Pemerintah) perlu dicari langkah solusi agar ada pegangan jaminan," katanya.

Sementara itu, Anggota Komisi VII DPR RIAwang Faroek Ishak meminta agar Kementerian ESDM mempertimbangkan evaluasi permohonan perpanjangan.

"Dari tujuh PKP2B kalau saya jumlahkan wilayahnya luasnya luar biasa. Ini mohon dapat dipertimbangkan pada proses evaluasi permohonan perpanjangan kalau mereka mengajukan. Saya kira banyak sekali yang tumpang tindah dengan lahan produktif untuk pertanian dan kawasan konservasi," kata Awang.

Dalam kesimpulan rapat, Komisi VII DPR RI mendesak Dirjen Minerba Kementerian ESDM agar dalam melakukan evaluasi perpanjangan KK dan PKP2B, masalah luas wilayah, kewajiban reklamasi, dan realiasai pembangunan smelter dikaitkan dengan progres pembangunan smelter harus menjadi salah satu dasar dalam mem-berikan kepastian perpanjangan IUP, KK, dan PKP2B. Editor : Rio Sandy Pradana

ITMG Successfully Receives 87 Percent Coal Sales Contracts

Author: Edo Fernando, Editor: Faris Primayudha

PT INDO Tambangraya Megah (ITMG) managed to get 87 percent of sales contracts from the total target that has been set for 2020.

Although the average selling price of coal has decreased to a level of USD55.8 per ton, the company is still able to achieve its sales volume target. Furthermore,...

ITMG Berhasil Dapatkan Kontrak Penjualan Batubara Sebesar 87%

Penulis : Edo Fernando, Editor : Faris Primayudha

PT INDO Tambangraya Megah (ITMG) berhasil

mendapatkan 87 persen kontrak penjualan dari total target yang sudah dicanangkan untuk tahun 2020 ini.

Meskipun harga jual rata-rata batubara yang mengalami penurunan hingga ke level USD55,8 per ton, namun perusahaan masih mampu meraih target volume penjualan. Lebih lanjut,...

IMA-Daily Update Page 24

Furthermore, of the total 87 percent of

contracts that have been obtained, 67

percent will use the fixed price selling

price, while the remaining 20 percent will

refer to the coal price index.

Due to the aforementioned factors, the

company is optimistic that it can meet

these targets. Moreover, China's economy,

which has been the largest coal consumer

so far, has started to experience

improvement and they are also confident

that in the second half of this year it will

get better.

As for the decrease in the company's coal

sales volume by 11.1 percent compared to

the same period last year, this was mostly

due to lower targets.

So far, PT ITMG's biggest sales of coal were

recorded in the Chinese market with 3.2

million tons, then Japan with 2.6 million

tons, the Philippines with 0.8 million tons

and Thailand with 0.7 million tons. This

amount does not include exports to other

countries in the East and Southeast Asia

region.

The prediction issued by the company for

this year will be higher sales volume

compared to the third quarter. This is

because there is an increase in production

at the Trubaindo and Bharinto mines

accompanied by a lower strip ratio.

For 2020, the production target set by the

company is in the range of 19 million to

20.1 million tons of coal.

Lebih lanjut, dari total 87 persen kontrak yang sudah didapat, 67 persen akan menggunakan harga jual fixed price, sementara 20 persen sisanya akan mengacu pada indeks harga batubara.

Oleh karena sejumlah faktor di atas, pihak perusahaan optimis bisa memenuhi target tersebut. Terlebih ekonomi Cina yang selama ini menjadi konsumen batubara

terbesar, sudah mulai mengalami perbaikan dan mereka pun yakin pada semester kedua tahun ini akan semakin membaik.

Adapun turunnya volume penjualan batu-bara perusahaan sebesar 11,1 persen dibandingkan periode yang sama tahun lalu, hal itu lebih banyak disebabkan oleh target yang lebih rendah.

Selama ini tercatat penjualan terbesar

batubara PT ITMG adalah ke pasar Cina sebesar 3,2 juta ton, kemudian Jepang sebanyak 2,6 juta ton, Filipina 0,8 juta ton dan Thailand sebanyak 0,7 juta ton. Jumlah tersebut belum termasuk ekspor ke negara-negara lain di wilayah Asia Timur dan Tenggara.

Prediksi yang dikeluarkan perusahaan untuk tahun ini volume penjualan akan lebih tinggi dibandingkan dengan kuartal

ketiga. Pasalnya terjadi peningkatan produksi di tambang Trubaindo dan juga Bharinto disertai nisbah kupas yang lebih sedikit.

Untuk tahun 2020 ini, target produksi yang telah ditetapkan oleh perusahaan adalah berada di kisaran 19 juta sampai dengan 20,1 juta ton batubara.

IMA-Daily Update Page 25

Recommendation: INCO's bright prospects fueled by the increase in nickel prices and divestment Reporter: Danielisa Putriadita | Editor:

Handoyo

THE NICKEL price, which is in a strong

trend, brings bright prospects to the performance of PT Vale Indonesia (INCO). The divestment process, which gave INCO an opportunity to expand its business, also added to the attractiveness of this stake.

INCO's performance has been seen positively from the financial reports for the first semester of 2020. In fact, INCO's sales increased by 23.3% to US$ 360.37 million from US$ 292.25 million in the first half of 2019. INCO's net profit in the first half of this year also increased significantly by 102% to US$ 53.12 million from US$ 26.2 million in the first semester of 2019.

Performance that continues to grow amid economic pressures due to the pandemic could occur because INCO nickel shipments continue to increase. It was noted that nickel matte production and shipments in the first half of 2020 were 18% and 19% higher respectively than production and shipments in the first half of 2019.

Samuel Sekuritas Indonesia analyst Dessy Lapagu said INCO's performance continues to grow because the nickel that INCO produces is always absorbed by the market. INCO's biggest customer is INCO's holding company, namely Vale Canada Ltd. "Until now, the holding is still able to consistently absorb production from INCO," said Dessy, Thursday (27/8).

Rekomendasi: Prospek INCO cerah tersulut kenaikan harga

nikel dan divestasi Reporter: Danielisa Putriadita | Editor:

Handoyo

HARGA nikel dalam tren menguat mem-

bawa prospek cerah pada kinerja PT Vale Indonesia (INCO). Proses divestasi yang memberi kesempatan INCO untuk me-lebarkan bisnis juga menambah menarik saham ini.

Kinerja INCO sudah terlihat positif dari laporan keuangan semester I -2020. Tercatat, penjualan INCO meningkat sekitar 23,3% menjadi US$ 360,37 juta

dari US$ 292,25 juta di semester I-2019. Laba bersih INCO di semester awal tahun ini juga meningkat signifikan 102% menjadi US$ 53,12 juta dari US$ 26,2 juta pada semester I-2019.

Kinerja yang tetap tumbuh di tengah tekanan ekonomi akibat pandemi bisa terjadi karena pengiriman nikel INCO tetap naik. Tercatat, produksi dan pengiriman nikel matte di semester I-2020 masing-masing sebesar 18% dan 19% lebih tinggi

dibandingkan produksi dan pengiriman di semester I-2019.

Analis Samuel Sekuritas Indonesia Dessy Lapagu mengatakan kinerja INCO tetap tumbuh karena nikel yang INCO produksi selalu terserap pasar. Pelanggan terbesar INCO adalah holding INCO, yaitu Vale Canada Ltd. "Hingga saat ini holding masih mampu secara konsisten menyerap produksi dari INCO," kata Dessy, Kamis (27/8).

IMA-Daily Update Page 26

Isnaputra Iskandar, an analyst at Maybank Kim Eng Sekuritas, projects that INCO's sales volume this year will reach 71,025 tons. Meanwhile, INCO's sales volume during the first semester of 2020 has reached 51.5% of Isnaputra's projection.

"We see that the risk of a decrease in sales volume will be low," said Isnaputra in the research. INCO's sales volume is projected to continue to grow because INCO has a long-term trade agreement with the Japanese market that will absorb all of INCO's production.

INCO's performance also continues to grow even though nickel prices fell due to the pandemic. It is noted that the average nickel price was 11% lower in the second quarter of 2020 compared to the first quarter of 2019. Management said the decline in nickel prices was also followed by lower prices for other energy commodities, thus helping to reduce the fuel budget.

Shares Divestment

Soon, the mining holding process for state-owned enterprises (BUMN), namely Mining Industry Indonesia (MIND ID) to control 20% of INCO's shares is targeted to be completed by the end of this year.

Dessy said the divestment sentiment was price in market players when the agreement was signed last June. Now, the effect of the divestment will have an impact on the financial side, such as shareholders who will release their shares to be purchased by MIND ID. Furthermore, INCO will receive transaction finalization at the end of this year.

Management said that after the divestment was completed, INCO opened the option to synergize with other mining SOEs, such as PT Aneka Tambang (ANTM), which both produce nickel.

Isnaputra Iskandar Analis Maybank Kim Eng Sekuritas memproyeksikan volume penjualan INCO di tahun ini mencapai 71.025 ton. Sementara, volume penjualan INCO di sepanjang semester I-2020 sudah mencapai 51,5% dari proyeksi Isnaputra.

"Kami melihat risiko penurunan volume penjualan akan rendah," kata Isnaputra dalam riset. Volume penjualan INCO diproyeksikan tetap tumbuh karena INCO memiliki pernjanjian dagang jangka panjang dengan pasar Jepang yang akan menyerap semua produksi INCO.

Kinerja INCO juga tetap tumbuh meski harga nikel sempat turun akibat pandemi. Tercatat, harga rata-rata realisasi nikel lebih rendah 11% di kuartal II-2020 di-bandingkan pada kuartal I-2019. Mana-jemen mengatakan penurunan harga nikel juga diikuti penurunan harga komoditas energi lainnya, sehingga tetap membantu dengan berkurangnya anggaran bahan bakar.

Divestasi saham

Tidak lama lagi, proses holding pertam-bangan badan usaha milik negara (BUMN), yakni Mining Industry Indonesia (MIND ID) untuk menguasai 20% saham INCO ditargetkan selesai pada akhir tahun ini.

Dessy mengatakan sentimen divestasi telah pelaku pasar price in saat penanda-tanganan kesepakatan tersebut di Juni lalu. Kini, pengaruh divestasi akan berdampak pada sisi keuangan, seperti shareholders yang akan melepas sahamnya untuk dibeli MIND ID. Selanjutnya, INCO akan menerima finalisasi transaksi di akhir tahun ini.

Manajemen mengatakan setelah divestasi rampung, INCO membuka opsi untuk bersinergi dengan BUMN tambang lain, seperti PT Aneka Tambang (ANTM) yang sama-sama memproduksi nikel.

IMA-Daily Update Page 27

This collaboration is possible because INCO also plans to build a high pressure acid leaching process (HPAL) in Pomalaa. Meanwhile, ANTM already owns the infrastructure.

Dessy hopes that the plan to synergize with other mining SOEs will have a strategic impact on INCO's performance prospects. Besides INCO is now in the process of

completing the construction of two smelters, according to Dessy, the synergy with BUMN can increase INCO's opportunity to boost production so that it is absorbed by the downstream industry.

Meanwhile, the prospect of INCO's performance this year will be supported by the upward trend in nickel prices. "We are optimistic that there is room to strengthen for nickel," said Dessy.

Especially with the support for improved demand from the stainless steel industry in China. Dessy estimates that nickel prices can be pushed up in the second semester of 2020 and even continue until 2021.

The increase in nickel prices was also supported by the halt in the supply of nickel ore from Indonesia due to the regulation on the ban on nickel ore exports from the Ministry of EMR since January 1,

2020.

Isnaputra added that along with the slow reopening of global economic activity, nickel prices have the potential to rise to US$ 14,300 per metric ton for 2020-2021.

"Every 1% change in nickel price projections this year, will change INCO's income forecast by 9.1%," said Isnaputra. Alahsil, Isnaputra raised INCO's profit projection to US$ 58 million, assuming a nickel price of US$ 13,007 per metric ton.

Kerjasama tersebut bisa terjadi karena INCO juga berencana untuk membangun high pressure acid leaching process (HPAL) di Pomalaa. Sementara, ANTM telah lebih dulu memiliki infrastruktur tersebut.

Dessy berharap rencana untuk bersinergi dengan BUMN tambang lain akan ber-dampak strategis pada prospek kinerja INCO. Selain INCO kini dalam proses

menyelesaikan pembangunan dua smelter, menurut Dessy sinergi dengan BUMN dapat meningkatkan kesempatan INCO untuk mendorong produksi sehingga di-serap oleh industri hilir.

Sementara itu, prospek kinerja INCO tahun ini akan didukung dari tren kenaikan harga nikel. "Kami optimis masih ada ruang untuk menguat bagi komoditas nikel," kata Dessy.

Apalagi dengan adanya dukungan per-baikan permintaan dari industri stainless steel di China. Dessy memperkirakan harga nikel bisa terdorong naik di semester II-2020 bahkan berlanjut hingga 2021.

Kenaikan harga nikel juga didukung dari terhentinya suplai nikel ore asal Indonesia akibat aturan larangan ekspor nikel ore dari Kementerian ESDM sejak 1 Januari 2020.

Isnaputra menambahkan seiring dengan

kembali dibukanya aktivitas ekonomi global secara perlahan, harga nikel ber-potensi naik ke US$ 14.300 per metrik ton untuk tahun 2020-2021.

"Setiap 1% perubahan proyeksi harga nikel di tahun ini, akan mengubah per-kiraan penghasilan INCO sebesar 9,1%," kata Isnaputra. Alahsil, Isnaputra menaik-kan proyeksi laba INCO menjadi US$ 58 juta dengan asumsi harga nikel di US$

13.007 per metrik ton.

IMA-Daily Update Page 28

Dessy projects that the nickel price could return to the level of US$ 13,000 per metric ton or increase from the average price during the first semester of 2020 at US$ 12,300 per metric ton. Dessy also projects nickel price to further strengthen to US$ 14,300 per ton in 2021.

Dessy recommended buying at a target price of Rp 4,000 per share. Isnaputra also recommended buying at a target price of Rp 5,000 per share. Kompak Delvin Teh Analyst BCA Sekuritas recommends buying at a target price of Rp 4,300 per share.

Dessy memproyeksikan harga nikel bisa kembali ke level US$ 13.000 per metrik ton atau naik dari rata-rata harga selama semester I-2020 di US$ 12.300 per metrik ton. Harga nikel juga Dessy proyeksikan lanjut menguat hingga US$ 14.300 per ton di 2021.

Dessy merekomendasikan beli di target harga Rp 4.000 per saham. Isnaputra juga merekomendasikan beli di target harga Rp 5.000 per saham. Kompak Delvin Teh Analis BCA Sekuritas merekomendasikan beli di target harga Rp 4.300 per saham.

On Fire, Coal Prices Rise Again Tirta Citradi, CNBC Indonesia

NEWCASTLE's benchmark thermal coal

price closed higher in recent trading. But still, this reinforcement reflects more on technical factors, not fundamentals.

On Thursday (27/8/2020), the coal price for contracts that are actively being traded closed up 0.9% to US$ 50.45/ton. Coal prices returned to the level of US$ 50/ton after previously subsiding to the lowest level in the last four years.

Looking at the price of coal which has been eroded for a long time, it is only natural that it experiences a technical rebound. However, basically the fundamentals in the market are still not improving.

Import demand from various biggest consuming countries such as China, India and Japan is still weak. Moreover, it is coupled with the increasing trend of market share of renewable energy as a substitute for coal.

Sedang On Fire, Harga Batu Bara Naik Lagi

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal acuan Newcastle kembali ditutup menguat pada perdagangan terakhir. Namun tetap saja, penguatan ini lebih mencerminkan faktor teknikal bukan fundamentalnya.

Pada Kamis (27/8/2020), harga batubara untuk kontrak yang aktif ditransaksikan ditutup menguat 0,9% ke US$ 50,45/ton. Harga batu bara kembali ke level US$ 50/ton setelah sebelumnya ambles ke level terendah dalam empat tahun terakhir.

Melihat harga batu bara yang sudah tergerus lama, wajar saja jika mengalami rebound teknikal. Namun pada dasarnya fundamental di pasar masih belum bisa dikatakan membaik.

Permintaan impor dari berbagai negara konsumen terbesarnya seperti China, India dan Jepang masih lemah. Apalagi ditambah dengan adanya tren kenaikan pangsa pasar energi terbarukan sebagai pengganti batu bara.

IMA-Daily Update Page 29

Based on data from the Japanese Ministry of Finance, the Sakura State thermal coal imports reached 8.9 million tons in July, down 14% over the same period last year.

Meanwhile, if you look at the January-July period, Japan's total coal imports reached 62.1 million tons or decreased by 3.6% compared to the same period in 2019.

Japanese coal imports from Russia and

Indonesia have tended to be flat this year. This means that imports from Australia and North America have experienced a deeper decline. The weak demand for the power generation sector during the Covid-

19 outbreak caused the demand for fossil fuels to fall.

Even the availability of alternative energy sources such as nuclear has decreased due to maintenance and upgrades. This is the

factor that triggers the current drop in coal prices.

The import of coal from Panda Country was slow. Now Chinese imports are starting to be held. At a time when China restricts its imports, like Japan, we cannot

expect much. Amid sluggish demand, bad news also came from India.

Reuters reports India plans to significantly

reduce its thermal coal imports in the next

few years to save foreign exchange and create jobs through the development of existing and new coal blocks.

Coal is one of the top five commodities imported by India, the world's largest consumer, importer and producer of fuel after China. Seeing this reality, the increase in coal prices in the end cannot be much and does not reflect the improvement in its fundamental. CNBC INDONESIA RESEARCH

TEAM (twg/twg)

Berdasarkan data Kementerian Keuangan Jepang, impor batu bara termal Negeri Sakura tercatat mencapai 8,9 juta ton di bulan Juli atau turun 14% dibanding periode yang sama tahun lalu.

Sementara jika dilihat pada periode Januari-Juli total impor batu bara Jepang mencapai 62,1 juta ton atau turun 3,6% dibanding periode yang sama tahun 2019.

Impor batu bara Jepang dari Rusia dan Indonesia cenderung flat tahun ini. Itu artinya impor dari Australia dan Amerika Utara mengalami penurunan yang lebih dalam. Lemahnya permintaan terhadap sektor pembangkit listrik semasa wabah Covid-19 merebak permintaan terhadap bahan bakar fosil pun turun.

Bahkan ketersediaan sumber energi alternatif seperti nuklir pun turun karena adanya perawatan (maintenance) serta upgrade. Ini lah yang menjadi faktor pemicu anjloknya harga batu bara saat ini.

Impor batu bara Negeri Panda sempat jor-joran. Kini impor China pun mulai ditahan. Di saat China menahan impornya, seperti Jepang yang juga tak bisa diharapkan banyak. Di tengah lesunya permintaan, kabar buruk juga datang dari India.

Reuters melaporkan, India berencana untuk secara signifikan mengurangi impor batu bara termalnya dalam beberapa tahun mendatang untuk menghemat devisa dan menciptakan lapangan kerja melalui pengembangan blok batu bara yang ada dan yang baru.

Batu bara adalah salah satu dari lima komoditas teratas yang diimpor oleh India, konsumen terbesar dunia, importir dan produsen bahan bakar setelah China. Melihat realita ini, kenaikan harga batu bara pada akhirnya belum bisa banyak dan belum mencerminkan perbaikan funda-mentalnya. TIM RIS ET CNBC INDONESIA (twg/twg)

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Freeport to ease lockdown in bid to end protest at Grasberg Reuters

THE INDONESIAN unit of Freeport-McMoran Inc said on Thursday it would ease a lockdown at its Grasberg gold and copper mine after a protest this week by workers angry over not being able to leave the mountain-top mining complex for months.

Mining operations have been disrupted after workers have blocked access to the world’s second-largest copper mine in the easternmost region of Papua since Monday, demanding transport out of the mine resumes and to receive a bonus for working during the pandemic.

Riza Pratama, a spokesman for PT Freeport Indonesia, said the company and the local government had agreed to ease curbs to allow workers to leave the mine area and visit the nearby town, but had yet to reach an agreement with workers on the policy implementation.

Local authorities were allowing some workers to leave Grasberg each day when they passed rapid test screening for the coronavirus, instead of the polymerase chain reaction (PCR) test, he said.

“They have to take rapid test when leaving, but there’s only a limited number of tests at a time and the number of buses is also limited,” he said. “That’s what we are trying to regulate now.”

The workers will have to also pass a temperature check upon arriving at the nearby town.

Pratama said 4,600 workers who had not taken any leave since April would be given priority, but a worker said the protest would go on until there was a written agreement.

“We will open the access only when we have the inter-office (memo) from the management in our hands,” said a worker who declined to be named for fear of repercussions.

The worker said a deadline had been set for 6 pm (0900GMT) for it to be issued, otherwise the protest would continue on Friday.

Freeport employs 13,000 people in Tembagapura, the closest town to the Grasberg mine. Out of these, 389 had tested positive for the coronavirus, with 361 of them now recovered, Pratama said on Wednesday. (By Agustinus Beo Da Costa and Fransiska Nangoy; Editing by Ed Davies)

BHP CEO eyes JVs for future-facing commodities Salomae Haselgrove

BHP chief executive Mike Henry has outlined the company’s goal to grow its future-facing commodity assets, including copper, nickel and potash over the coming year.

IMA-Daily Update Page 31

The chief executive addressed the company’s shareholders on Thursday to summarise BHP’s plans for the 2021 financial year and beyond, including decisions around divestment of coal assets and taking on potash.

According to Henry, a decision around taking on potash as a new commodity will evolve “in the course of the next year” as BHP aims to take on commodities it believes will be in greater demand.

To do so, BHP is targeting further exploration to find new resources, as recently done with the Oak Dam copper deposit in South Australia, and more early stage joint ventures with other companies.

“Due to the electrification and decarbonisation trend at play due to the rising standards of living, the world is going to need more copper, nickel and potash so the demand is going to be strong,” Henry said.

“We already have business in copper and nickel but would like to secure more options in this space because we believe there is attractive value in returns generated for shareholders.”

BHP also plans to divest part of its coal business, including several mines in Queensland, a New South Wales thermal coal mine and a stake in a thermal coal asset, Cerrejon, in Colombia.

Henry stressed that the company would retain its high-quality coking coal assets across Queensland, as the company believes coking coal has a strong future as steelmakers seek to lower their emissions.

“High quality coking coal is the type of coal we believe is going to have upsize exposure in a decarbonising world,” he explained in his shareholder address.

“Those assets will stay with BHP and realise value by becoming even more productive, lower cost and focussing on improving returns on capital.”

Henry acknowledged the erratic commodity prices brought about by the COVID-19 pandemic as he forecasted high iron ore prices and low prices across other commodities to balance out in the short-term.

“We have a great iron ore business and it is going to be a business that remains strong for a long time, but we aren’t expecting prices to hold up at current levels,” he said.

“We do expect as supply recovers in other jurisdictions we’ll see prices come off a little bit and at the same time we’ll see prices for other BHP commodities increase as the rest of the world recovers from near-term COVID impacts.”

The chief executive outlined that despite trade tensions with China, he had faith in the relationships with its suppliers and customers in China, which remained on “a very solid footing” during the pandemic.

“Our direct relationships with customers and suppliers are on a very solid footing and remain strong,” Henry said.

“Through the COVID period they did a wonderful job and went out of their way, even in the depths of their COVID crisis to meet their commitments to BHP.”

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Looking ahead, Henry said that the company would release its scope 1 and 2 climate change targets next month, and despite the current uncertainty in the world he’s confident in the company’s future.

“The future is bright, I can’t downplay the current uncertainty the world is facing and the tragedy that is COVID-19 but we can see what this company has been able to achieve in spite of these unprecedented challenges,” he concluded.

“Couple that with securing more options in the commodities the world is going to need more of is a winning formula that is going to allow us to continue to grow value for a very long time.”

Nevada Copper restarts production at its underground Pumpkin Hollow project

Published by Simon Matthis

NEVADA Copper Corp. announces that it has restarted its milling operations at its underground project at Pumpkin Hollow.

On August 20, 2020, the Company restarted its processing plant following temporary suspension of copper production due to impacts of the COVID-19 pandemic. The plant restart and ramp up benefits from the processing plant’s initial consistent performance in the First Quarter.

There are approximately 160,000 tons of stockpiled material at surface available for immediate processing. The stockpiled ore will be supplemented with additional development ore and subsequent stope ore hoisted via the East North Ventilation Shaft (ENVS). Material will continue to be hoisted from the ENVS until work on the Main Shaft has been completed. The Company remains on track for the commencement of Main shaft hoisting scheduled for Q4, 2020.

“We are encouraged by the processing plant restart at our Pumpkin Hollow mine,” stated Evan Spencer, Chief Executive Officer of Nevada Copper. “Our full workforce has been mobilized and we have transitioned our operations back into production smoothly, picking up where we left off in Q1. We look forward to executing our ramp-up plans and will report on progress in the coming months.”

Nevada Copper’s priority during the COVID-19 pandemic is to safeguard the health and safety of the Company’s workforce, including by following government mandated directives. The Company has implemented additional health and safety measures to address COVID-19 risks during the restart of the processing plant. Other such measures have been implemented in connection with the ongoing mine development.

Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver.

IMA-Daily Update Page 33

Mongolia's coal exports to China growing

MONGOLIA planned to export 40 million tons of coal this year, but around 13 million tons of coal were exported due to COVID-19 pandemic, Montsame reported.

According to an information provided by the Cabinet Secretariat of the Mongolian government, the coal exports from Mongolia have been growing, beginning from this month, and the number of coal transportation trucks has been increasing. The daily volume of coal transportation freight trucks to cross the border checkpoints to China was usually around 1,800 lately. However, in the recent several days, the number has exceeded 2,000.

In particular, on August 25, a total of 2,001 heavy duty trucks for coal transportation moved through Gashuunsukhait, Shiveekhuren, Yarant, Khangi border crossing points to China, which shows that the daily volume of coal trucks has returned to the pre-COVID-19 level.

As informed by the Cabinet Secretariat, the growth of coal exports to China is thanks to the Mongolian and Chinese governments’ joint implementation of the ‘Green Gateway’ temporary regulation at border crossing points.

To prevent from the spread of COVID-19, sterilization, and disinfection measures are being conducted for all trucks transporting coal and other minerals before they enter the country across border checkpoints and heavy-duty trucks conducting exports and imports transportation are being escorted under police surveillance to clearance terminals.

Chinese company takes over Canadian-owned Aurora Gold Mines

THE CHINESE mining company Zijin Mining Group Company Ltd (Zijin) said earlier this week it had reached an agreement with the Canadian-owned Guyana Goldfields Inc (GCI) to acquire the operations of Aurora Gold Mines (AGM). In a joint statement, the companies said they were pleased to announce the completion of the previously announced statutory plan of arrangement under the Canada Business Corporations Act involving Guyana, Zijin and Canada Inc, an indirect, wholly owned subsidiary of Zijin following receipt of all required regulatory approvals and satisfaction of all closing conditions.

The statement said that pursuant to the arrangement, Zijin acquired all of the issued and outstanding common shares of GCI not already owned by Zijin.

“Each Guyana shareholder is entitled to receive cash consideration of C$1.85 (One Canadian dollar-US$0.75 cents) per share held,” the statement said, noting that registered Guyana shareholders should send their completed and executed letters of transmittal and certificates representing their shares to the depositary, TSX Trust, in accordance with the instructions contained in the letter of transmittal, as soon as possible.

IMA-Daily Update Page 34

GCI and Zijin said they expect the shares to be delisted from the Toronto Stock Exchange within one to three business days and that Zijin will also apply for GCI to cease to be a reporting issuer under applicable Canadian securities laws.

Guyana Goldfields Inc is a Canadian-based gold producer primarily focused on the exploration, development and operation of gold deposits in Guyana, South America, while Zijin formed in 1993 and is a leading global mining company specialising in gold, copper, zinc and other mineral resource exploration and development.

Zijin said it manages an extensive portfolio, primarily consisting of gold, copper, zinc, and other metals, through investments in China and overseas across eleven countries. It is listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange.

GCI in 2019 began underground mining before it announced earlier this year that it was selling its operations, but the major concern has been the future of staff employed by the company.