PT Titan Infra Sejahtera's Performance Towards 2025

According to President Director of PT SLR/ PT SDJ Victor B. Tanuadji, in 2024 the performance of PT Titan Infra Sejahtera (TIS) will continue to grow. As an illustration of EBITDA (earnings before interest, tax, depreciation, and amortization), a general term to describe a company's financial performance, last year TIS recorded EBITDA of US 100 million.

"This year we are optimistic that the figure will increase," added Suryo Suwignjo, Director of Operations of PT Titan Infra Energy, TIS's holding.

Suryo further explained that TIS's revenue or income is directly related to how much of the main commodity is transported, namely coal, through the SLR hauling road and shipped by SDJ.

Increase in the Volume of Coal Transported

This year, for example, the amount of coal passing through and shipped by TIS is 21 million tons, an increase of around 15 percent from 2023 which was 18 million tons. And next year it is estimated to be 27 million tons.

Cooperation with PT Bukit Asam Tbk

Interestingly, Victor added, since this year, PT Bukit Asam Tbk, has started sending their coal production through the TIS coal route and port.

Of course this brings a breath of fresh air for the company.

Victor believes that Bukit Asam coal that passes through the TIS route will continue to increase from year to year. Especially in the midst of relatively stable coal prices at US$ 125 per ton.

Increasing Infrastructure Capacity at PT Titan Infra Sejahtera

In fact, to anticipate bottle necks, blockages in traffic routes, due to the surge in transportation and shipping, this year TIS has increased the number of ports from 2 to 3 ports with 5 conveyors. The plan is to add 1 more conveyor next year.

Victor is optimistic that the company's future will be bright in the future. He explained that Indonesia as a major producer and exporter of thermal coal in the world, currently the coal supply is dominated by mines in Kalimantan.

The problem is, the cost of stripping or dredging coal in Kalimantan is getting more expensive because the mining age is quite old.

With increasingly expensive excavation costs, prices are becoming uncompetitive. "This space is our future," said Victor, beaming.

South Sumatra as the Future of the Coal Industry

Victor's optimism is not excessive. Facts show that Sumatra is currently the second largest coal producer in Indonesia. And South Sumatra, where TIS operations are located, is the largest contributor to coal production in Sumatra.

Coal reserves in South Sumatra are recorded at 9.3 billion tons. This amount is 25% of the national coal reserves which reach 37.6 billion tons.

The concentration of coal mines in South Sumatra is in three districts, namely Muara Enim, Lahat, and Pali.

In Muara Enim alone, there are at least 29 mining business permits issued by the government.

This year, the Energy and Mineral Resources (ESDM) Office of South Sumatra Province is targeting coal production to reach 131 million tons.

Those numbers are the future of TIS. When coal reserves in Kalimantan start to dwindle and production costs become more expensive, it is inevitable that buyers will look to South Sumatran coal.