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MINUTES OF
ANNUAL PUBLIC EXPOSE 2023
PT BUMI RESOURCES TBK.
In compliance with Decree Letter of the Indonesia Stock Exchange No. Kep-
00066/BEI/09-2022 of 30 September 2022 regarding Amendment to Rule No. I-E on
Mandatory Submission of Information, we hereby advise that PT Bumi Resources Tbk.
(“the Company” or “BUMI”) has successfully conducted its Annual Public Expose
virtually on:
Date : Wednesday, 6 December 2023
Time : 10.00AM – 12.00AM.
Agenda : 1. Overview:
• Ownership Structure of the Company,
Production, Coal Reserves & Resources.
• Top Awards & Achievements.
• Safety Record – Best in Class.
2. 9M’23 Performance.
3. Marketing.
4. Domestic Market Obligation (DMO).
5. BUMI Reborn – Transformation:
• Restructuring Status.
• Good Corporate Governance.
• Strengthened Management – New Boards &
Commissioner.
Appendix : Corporate Social Responsibility (“CSR”)
The minutes are as follows:
Background of : Decree Letter of the Indonesia Stock Exchange No. Kep-
this Public Expose 00066/BEI/09-2022 of 30 September 2022 regarding
Amendment to Rule No. I-E on Mandatory Submission of
Information.
Attendees : The Company:
Physically
• Directors:
- Dileep Srivastava (Director & Corporate Secretary)
- R.A. Sri Dharmayanti (Director)
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- Andrew C. Beckham (Director)
- Ido Hutabarat (Director)
- Ashok Mitra (Director)
Capital Market Journalists/Observers/Analysts/Investors ± 77
persons.
Moderator/ : Achmad Reza Widjaja (VP Investor Relations & Chief of Economist)
Person delivering
presentation
How presentation : Presenting Presentation slides to the attendees, followed by a
is delivered Question & Answer session.
The Question & Answer session with participants was carried
out via online chat box, with questions read out by the
Moderator and answered by members of the Company's Board
of Directors.
Questions raised : 1) Media:
in the question & What is the BUMI coal production target and forecast
answer session: revenue in 2024?
2) Investor:
What does the Company think about the increase in royalty
rates?
3) Investor:
What is coal prospect in the future? What is BUMI’s FY 2023
net income target?
4) Investor:
What is the potential dividend payout this year?
5) Media:
What is the progress or update of downstream project and if
BUMI is interested in government auction of mining areas?
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6) Investor:
What is the update on BLU-MIP prepared by the government
and the impact of BUMI?
7) Investor:
Is there any coal demand from Eropa?
8) Media:
Is there any standby buyer in respect of the downstream
project? and whether there is any plan for acquisition of
mining companies or opening new mines?
Responses to the : 1) Media:
questions: BUMI has not finalized its full year 24 figures as yet, but it
will be reasonable to expect that the production volume
should be around 80 Mt in 2024. This year alone, we are
looking at close to 80 Mt vs around 71 Mt in 2022.
Our effort is to maximize production, the coal prices are
seeing a decline at this point of time, but the forward curve
suggest that they are in contango and likely to rise. There is
also an equity report which was suggesting the coal prices
for 2024 could be around 8-10% higher than the current level.
We have not released our 24 guidance as yet, as soon as it is
finalized, we will make a public disclosure.
2) Investor:
As of March 2023, HBA is higher than GCNEWC. This has
led to royalty increase, where above 30% was paid by
Arutmin & KPC, whereas in fact royalty was only 28%, and
the 31% and 29% represented accumulation from domestic
which was only 14%.
Taking about exports only, the figure was only 35% -36%
compared to 28%, this is purely because the HBA is always
above the market price. This is due to government policy
stipulating the prices, which is beyond our control.
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So, this is one of the highest cost, outside of production cost.
Hence, a significant decline in profit due to lower coal prices,
increased royalty, rising production cost and high fuel costs.
3) Investor:
Coal will always be in demand, especially in Asia and even
in Europe, with many coal fired power plants coming back
on. The Company believes that demand /production will
continue, hopefully, there will be transition over 10-20 years
to new energy but that depends on how fast the technology
moves. In the next 10-15 years Bumi is still in a strong
position. Our main market are India, China, Japan,
Philippines, and domestic is very strong, as they are
dependent on coal at present.
On Net Profit, we cannot comment on our forward net profit
at the moment, but we can say that production and sales are
increasing in the 4th quarter. We see this year that our coal
mines are hitting the target in terms of production and sales.
4) Investor:
According to Indonesia Company Law Article 70-71, that
BUMI has not met the requirement to be able to pay
dividends to shareholders, as the Company still recording
deficit. BUMI is examining ways on how best to achieve
regulatory compliance to enable accelerate dividend
possibility. This is a management key priority.
5) Media:
It is very much part of BUMI IUPK licensing that the
Company is committed to conducting a coal downstream
project as per existing law and condition of the IUPK, so we
will look at the economical aspect of the project, we are
progressing on completing the Feasibility Study and
finalizing the partners and as soon as everything is in place,
we can make appropriate public disclosures. Our
commitment is to have these on stream and commissioned
by 2027 as per IUPK conditions.
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6) Investor:
At this moment, the regulation has not been finalized. Once it
is finalized, we can see or assess the impact of this regulation
on both KPC and Arutmin.
Draft Presidential Regulation is being prepared at the
moment, with appointed government partner agency to
regulate the process called “pungut salur”. Principally, the
idea is how the companies supplying the PLN and DMO, or
surpassing the DMO will get compensation over the excess
DMO. Many things need to be reviewed. The impact is of
course on the cashflow, meaning we have to pay in advance,
but the compensation is not until 3-4 months to get, and that
could disturb company’s cashflow.
7) Investor:
Coal demand increase in 2022 from 52MT to 87 MT as supply
shrank, inability of renewables to replace fossil fuels, rains,
and the geo-political situation, aggravated by spiraling gas
and coal prices.
2023 is a more normal year, coal prices and natural gas prices
have been sharply dropping by 4x-5x.
Asia, including China, India and Indonesia is witnessing
increasing supply by higher domestic production.
We are not able to cater significantly to the EU zone market
since they use the much lower API indices (compared to
GCNEWC & HBA prices) hence, is a disincentive for us at
present.
8) Media:
In the coal downstream project that we do, will have a
marketing angle and partnering angle attached to it, So, when
the deal is finalized, an off-taking agreement would also be
disclosed on whatever we can finalize with the parties.
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This is work in progress, but we take it as high priority, and
public disclosures will be made hopefully by middle of next
year when everything is in place.
KPC and Arutmin are our mature coal sites, so the prospect of
acquiring mining new mines are really limited. We do own the
3rd asset, Pendopo in Sumatera where it has 1 billion tons of
low rank coal reserves, so we are trying to see how we can
mobilize that and convert that into earning opportunity
whether it is sales of that coal or to have project on the site
which can use the coal. For the present we are marketing part
of that coal to a nearby power plant, and we hope to increase
that volume as time goes.
So, there is no such plan at the moment to acquire new mines,
but we are looking at various business opportunities.
We have aligned objective with major shareholders to
strengthen the existing coal business, improve margins, and
also looking at new project in green areas, national priority
area like coal downstream, and non-coal diversification area,
such as metal.
We will make informed disclosure as soon as thing everything
is finalized.
The minutes of Annual Public Expose Year 2023 PT Bumi Resources Tbk. are prepared.
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Documentation of Virtual Annual Public Expose PT Bumi Resources Tbk. /Paparan Publik Tahunan/6-12-2023/Berita Acara.doc Hal 7 dari 7
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