Titan Infra Sejahtera Prepares New Infrastructure to Anticipate Rising Coal Production by 2025

PT Titan Infra Sejahtera (TIS), part of the Titan Infra Energy Group, continues to solidify its position as a key player in Indonesia’s coal logistics sector. In anticipation of the projected increase in national coal production toward 2025, the company has not only demonstrated impressive financial growth but is also accelerating the development of supporting infrastructure. From port expansions to employee facilities, these strategic steps highlight TIS’s readiness to serve as the backbone of coal distribution, particularly in South Sumatra, now predicted to become Indonesia’s new coal epicenter.

Financial Performance: A Strong Foundation for Growth

2023 was a stellar year for TIS, with EBITDA (earnings before interest, taxes, depreciation, and amortization) reaching US$100 million. This figure reflects the company’s operational efficiency amid global coal price fluctuations and intense market competition. According to Victor B. Tanuadji, President Director of PT SLR and PT SDJ—two subsidiaries of TIS—this strong EBITDA performance stems from cost optimization and increased coal transportation volumes.

“EBITDA is a key indicator of our financial health. This achievement shows that the company is not only growing but also well-managed,” Victor stated. He added that in 2024, TIS aims to further boost EBITDA through infrastructure expansion and rising coal volumes.

This optimism is shared by Suryo Suwignjo, Operations Director of Titan Infra Energy. He explained that TIS’s revenue is directly tied to the volume of coal transported via PT SLR’s hauling roads and shipped through PT SDJ’s ports. In 2023, the total coal volume handled reached 18 million tons. For 2024, this figure is projected to jump 15% to 21 million tons, with a further increase to 27 million tons expected by 2025.

“This growth aligns with stable global demand, particularly from Asian countries like India and China, as well as our ongoing infrastructure readiness,” Suryo emphasized.

Anticipating Production Surges: Infrastructure Expansion to Prevent Bottlenecks

To accommodate rising coal volumes, TIS is undertaking massive infrastructure upgrades. In 2024, the company expanded its port count from 2 to 3 units, equipped with 5 high-speed conveyor systems to streamline loading and unloading. An additional 1 conveyor is planned for 2025 to ensure seamless distribution.

“We’ve learned from past experiences. Bottlenecks at ports or hauling roads can disrupt supply chains and harm all stakeholders. That’s why we’re investing heavily in infrastructure early on,” Suryo explained.

Beyond conveyors, PT SDJ is also constructing Jetty 3 Stage 2 Phase 1 at Muara Lematang Port. This project incorporates eco-friendly technologies, such as wastewater containment systems and dust suppression mechanisms, to minimize environmental impacts. These efforts not only boost shipping capacity but also align with global demands for sustainable mining practices.

On the hauling front, PT SLR has increased its truck fleet and conducts regular maintenance on mining roads. “Smooth hauling roads are key to time and cost efficiency. We also use GPS tracking to monitor truck movements in real time,” Victor added.

South Sumatra: Indonesia’s New Coal Hub

Victor emphasized that the future of Indonesia’s coal industry is shifting to South Sumatra. As the nation’s second-largest thermal coal producer, the region holds reserves of 9.3 billion tons—equivalent to 25% of Indonesia’s total reserves (37.6 billion tons). Mining activities are concentrated in three regencies: Muara Enim, Lahat, and Pali, with Muara Enim alone hosting 29 active mining permits (IUP).

“Production costs in Kalimantan are becoming less competitive due to rising stripping costs as mines age. In South Sumatra, reserves remain abundant with lower operational costs. This is a golden opportunity for us,” Victor stated.

The South Sumatra Provincial Energy and Mineral Resources Office (ESDM) has set a 2024 coal production target of 131 million tons, a figure expected to grow as investment shifts to the region. As a company operating at the heart of this new coal hub, TIS positions itself as a primary logistics partner. PT SLR’s hauling roads and PT SDJ’s Muara Lematang Port serve as critical links between mines and global markets.

Wisma Titan KM 4: Enhancing Employee Productivity with Housing and Office Facilities

Beyond operational infrastructure, TIS is committed to improving employee welfare through the construction of Wisma Titan at KM 4, Muara Lematang Port. This 2.5-hectare project was inaugurated via a groundbreaking ceremony led by Handoko A. Tanuadji, Chairman of Titan Group, alongside directors including Suryo Suwignjo, Victor Tanuadji, and Antonious Kristiadi.

The facility includes a two-story office with modern workspaces, large-capacity meeting rooms, and employee housing complete with amenities such as a cafeteria, sports fields, and a clinic. The project addresses the port’s remote location, which lacks adequate public facilities.

“Our employees are our greatest asset. With Wisma Titan, we aim to provide comfort for those who spend 80% of their time working in the field,” Handoko stated.

The ceremony began with the laying of the cornerstone and foundation piling using a 1-ton giant hammer. Sustainability was symbolized by the planting of fruit trees—durian, longan, avocado, and water apple—intended to beautify the area and serve as a shared pride.

“These trees not only enhance the environment but also reflect our commitment to sustainability,” Handoko added.

Long-Term Strategy: Synergy, Technology, and Collaboration

TIS’s preparations for 2025 extend beyond physical infrastructure to include strengthening synergies among subsidiaries and technological innovation. For instance, PT SDJ has implemented automated port systems, reducing loading/unloading time by 30%, while PT SLR has introduced fuel-efficient trucks that cut carbon emissions by 20%.

Victor noted enhanced collaboration with IUP holders in South Sumatra. “We’re not just logistics providers but strategic partners helping them optimize supply chains,” he said.

Additionally, TIS actively participates in corporate social responsibility (CSR) programs, such as building schools and community health centers near operational areas. These initiatives aim to strengthen ties with local communities and support sustainable development.

Balancing Growth and Sustainability

Despite optimistic business prospects, TIS acknowledges future challenges. First, global pressure to transition to clean energy may reduce long-term coal demand. Second, stricter environmental regulations require additional investments in green technologies.

However, Victor believes coal will remain a primary energy source in Asia for decades. “As long as demand exists, we will innovate to ensure our operations are efficient and sustainable,” he asserted.

Concrete Steps Toward 2025

PT Titan Infra Sejahtera demonstrates that infrastructure readiness, long-term vision, and employee welfare are key to navigating the coal industry’s dynamics. From port upgrades to Wisma Titan, each step is measured and geared toward inclusive growth.

By focusing on South Sumatra—Indonesia’s emerging “coal granary”—TIS not only secures its position in the national logistics landscape but also contributes to regional economic growth. The challenge ahead lies in balancing business expansion with environmental responsibility, ensuring that the 2025 production surge benefits all stakeholders, from employees to local communities.