Titan Infra Sejahtera expands to accommodate South Sumatra’s growing coal output

South Sumatra Province owns abundant coal reserves about 9 billion tons, however the province only produces around 100 million tons per year in recent years, significantly lower than East Kalimantan Province which produces about 300 million ton per year. Logistics infrastructure for coal transportation remains the biggest hurdle to increase coal output in South Sumatra Province

In the past coal logistics and infrastructure in South Sumatra mainly utilizes railway transport operated by PT Kereta Api Indonesia (Persero) or KAI. Another available option is coal hauling road and riverway transport operated by private sectors. Two major coal producing areas in the province are Lahat and Muara Enim Regencies.

Limited logistic and transport capacity in the province makes many coal producers in these regions are unable to ramp up their production volume. To unlock the potential of the province, logistic and infrastructure providers have been increasing the coal transportation capacity in the province. In recent years, the transported coal volume from South Sumatra showed growing trend from 90 million tons in 2022 to 131.28 million tons in 2024.

To accommodate the growing demand for coal logistics and transportation in South Sumatra, PT Titan Infra Sejahtera (TIS) is strongly committed to develop key infrastructure for coal producers in the region.

TIS, a subsidiary of Titan Infra Energy (TIE), operates two coal logistic providers namely PT Servo Lintas Raya (SLR) and PT Swarnadwipa Dermaga Jaya (SDJ).

“SLR as the hauling road operator and SDJ as port management provide infrastructure and logistic services helping coal producers in the regions to bring their coal to the markets,” Victor B Tanuadji, President Director of PT Servo Lintas Raya (SLR), said to CoalMetal Asia Magz, recently.

SLR manages a 118 km special coal hauling road connecting coal mines in Lahat and Muara Enim to SDJ Port in Penukal Abab Lematang Ilir (Pali) Regency. The facility is designed for 24 hours and 7 days operation, equipped with bridges and supporting infrastructure, ensuring smooth, safe and sustainable coal transportation all year long. The route is the main logistics backbone to support the coal supply chain in the region.

SLR also operates two intermediate stockpiles :

• Intermediate Stockpile 107 spanning 65 hectares of area with a capacity of 600,000 tons and is equipped with a 23,000 tons/day coal crusher.
• Intermediate Stockpile 36 covers 80 hectares of area with a capacity of 800,000 tons, and is equipped with a 30,000 tons/day coal crusher to support large-scale coal processing.

SDJ is a leading coal logistic player in the coal industry, managing and operating 62 hectares of state-of-the-art port infrastructure with 3 barge loading conveyors with a current capacity of up to 35 million tons per annum (Mtpa). In May this year, SDJ has expanded facilities at Jetty 3 as part of its ongoing strategy to strengthen coal logistics infrastructure in South Sumatra. Currently, SDJ operates three jetties which can accommodate 300 feet barge jumbo.

“As a service provider, we offer the best services for coal producers and ensure their coal cargoes are safely delivered to the destinations on time,” Victor said. SDJ port can reduce the loading and unloading time from 7 days to 3 days per vessel as it can accommodate 14 barges per day.

TIS provides logistic and transportation services for about 15 customers with a total volume of 21.6 million tons in 2024 and Victor expected that the transported volume will be a bit higher up to 23 million tons in 2025.

Further Expansion

As the demand of coal transportation and logistics service grows, Victor stated that it offers the company an opportunity to further expand the coal port facility.

“Currently, we can accommodate up to 35 million tons of coal per year, and we will expand it up to 45 million tons per year,” he said.

Victor stated that TIS is on the planning and designing phase to develop the fourth jetty in SDJ and is expected to realize the project in the next two or three years.

From the coal mines to the SDJ port, he added that coal transportation via hauling road can operate safely and more efficiently as SLR has all-weather hauling road. The road is designed with a reinforced gravelstructurecapable of withstanding extreme loads. Equipped with a GPS monitoring system and a 24-hour command centre, the road reduces truck travel time from 12 hours to 8 hours per trip.

In addition, SLR plans to expand the hauling road and build additional 25 km to extend the length of the road to the Muara Enim region. The plan, with estimated value at approximately Rp450 billion, is targeted to increase transportation capacity and providing access to the market for coal producers in the region.

Furthermore, Victor told that SLR plans to upgrade the hauling road quality by applying chipseal to boost operational efficiency.

“By applying chipseal, the road maintenance cost will be significantly reduced and trucks will consume less fuel and tires,” he said.

Victor reiterated that the ongoing expansion of TIS will offer benefits for all stakeholders, not only shareholders and local governments, but more importantly also the local communities. The 118 km long hauling road of SLR is crossing through 52 villages of three regencies.

“We create job opportunity for local communities as all operating trucks on our hauling road are not only our trucks, but also trucks owned by local transporters,” Victor said.

In addition, local small-scale business units grow around TIS operating areas providing basic needs for employers, such as catering and water supply.

By providing an integrated operation of coal hauling road and port, TIS also helps reducing the reliance of coal producers in South Sumatra on public roads to transport coal from mines to ports. For years, coal transport via public roads has created social issues, such as severe traffic congestion on the Trans-Sumatra Highway, road damage due to heavy truck loads, and air pollution threatening public health.

Regionally, mining sector contributes about 24.69 percent of South Sumatra’s 5.03 percent of economic growth in 2024 followed by manufacturing industry and farming, forestry and fishery which contributed 18.35 percent and 12.59 percent respectively.

Optimistic view

Victor stated that coal industry offers huge contribution to the economy both in regional and national level as coal remains the most affordable and reliable source of energy. In global level, coal utilization for power generation also shows encouraging growth trend, particularly in Asia’s emerging countries.

“In 2024, the global coal consumption reached the record-high, but unfortunately it is slowing down in 2025 due to trade war and geopolitical tensions,” Victor said. However, he added that coal demand from growing economies in Asia, such as Pakistan, Bangladesh, Thailand, Vietnam and the Philippines show an encouraging trend.

In domestic market, Victor also highlighted the growing demand from power generation and mineral processing industry. “We see the domestic market grow relatively stable, but there is some coal demand increase from smelter industry in eastern part of Indonesia,” he said.

Quoted from Coalmetal Asia Magazine, Volume 175, June 2025, by Tri Subhki R