Born in Malang, on September 30, 1958, Milawarma received his Bachelor’s Degree from the Mining Department of UPN Veteran Yogyakarta on 1987 and Master’s degree of Engineering from University of Wollongong, Australia 1995. Throughout his career in PT Bukit Asam (PTBA) he has had various strategic positions such as Head of Long-Term Mine Planning (1995-1996); Head of Business Diversification (1997-1999); Business Analyst/Senior Professional in Business Development (1999-2003); Corporate Secretary (2003-2006); Director of Operation/Production (2006-2011); President Director in Dec 2011-2016.
The downturn in the global coal market during the past two years prompted to cut down costs in a bid to help maintain margins. Indonesian coal miners adopted various measures and strategies throughout 2013 as they struggled to navigate by themselves out of the global coal market storm. During that year, efficiency was key. However, for PTBA there had been mixed responses; some positive performances seen from the third quater results of publicly-listed miners, while others had to suffer from losses. The company is optimistic with the outlook for the next five years as it aims to increase production and sales volume to 50 million tons. There has indeed been an oversupply situation. The company has prepared a number of strategies to manage sales margin by controlling production costs, improving operational efficiency and focusing on high calorie coal sales to get better sales prices. PTBA earned Net Profit Margin (NPM) above 17% so that the company is recorded domestically and internationally as a coal miner to reach NPM above 15% in 2013 amid falling coal commodity prices that reached 20%-30%.
This turn has forced many miners to suspend corporate social responsibility (CSR) programs as it is considered a cost burden. In contrast, publicly-listed coal miner PT. Bukit Asam (Persero) Tbk, one of the largest in the country, has continued to expand its CSR programs despide the current industry downturn as the company considers CSR as a form of investment, which does not only benefit the communities around its mines in Tanjung Enim, South Sumatera and elsewhere but also supports its mining operation.
Through the CSR program, the company implements corporate social responsibility by continously driving growth, building self-reliant communities and striving to improve environment quality. The company would like to keep growing and developing with surrounding communities, building and harmonising relationships in a sustainable environment. Hence the company’s existence can most benefit and meet stakeholders’ expectations, including customers, business partners, the government, shareholders, employees and the surrounding communities to achieve a properous self-reliant and environment friendly community. To increase the Community’s self-reliance and at the same time to meet the company’s needs, Bukit Asam Industrial Centers (SIBA) has been set up in the Agribusiness Sector to secure the supply of Bokashi fertilizer and the Manufacturing Sector to supply spareparts to support
operation of Bucket Wheel Excavators and the Conveyor Belt System where previously it had to import from Germany. Now PTBA is able to leverage local materials and maximaze the use of available spare parts to improve efficiency.
The CSR program is part of the company’s investment and line of business. In addition to the CSR program, PTBA is currently developing a new project to help realize its vision to become an environmental concious world class energy company.
The Company has been able to maintain solid sales performance because it producers quality high calorific value coal required by the export market. Construction of the double track railway Tanjung Enim Kertapati and Tanjung Enim-Tarahan will increase transport capacity to 25 million tons. In an effort to take advantage of low calorie coals that have no economic value in order to provide value added and increase returns to shareholders, the company expands its business to Mine Mouth Power Plant. The development of this project, in addition to meet the electricty needs for the company’s operations, supports the fulfilment of the national electricity demand and has become the company’s new revenue sources. The company built 2×8 MW coal fired power plant at the Tarahan Port to support the capacity expansio One of the strategies to prioritize the use of production equipment that can be run by electricity from its 3×10 MW mine mouth power plants. Another project being developed by PTBA is the 2×110 MW Banjarsari coal power plant in Tanjung Enim, the construction of which has covered about 80 percent of the target, and is projected to start operation is the second semester of 2014. Other Power plant projects include the 2×620 Banko Tengah power plant at Tanjung Enim. PTBA is also planning to develop a coal power plant with the capacity of 800-1200 MW its concession in Peranap.
The implementation of good corporate governance principles will nurture firm trust of customers, investors and the public in the company. The high public trust in a company reflects on the respective company’s market valuation. The company strives to maintain its reputation as a mining company managed by implementing ethical business practices that is always in compliance with the applicable laws and regulations.
The company’s long-term strategy is directed to improve operational efficiency and seek new revenue sources. PTBA’s visionis to become an environmental concious world class energy company which is implented systematically by managing its own strengths optimally against possible risks. The company also performs generic development by increasing production in owned mine areas, acquiring mines and developing rail transport infrastructure.
Going forward, the company has the opportunity to substantially increase its market share and become a dominant coal supplier with ongoing capacity improvement programs for mining, transport and ports.