JAKARTA – PT Indo Tambangraya Megah Tbk (ITMG) is targeting a 9.6–14.2% year-on-year (yoy) increase in coal sales volume in 2025, bringing the total to 26.3–27.4 million tonnes.

The increase, as stated by ITMG Management during an Analyst Meeting on Monday (3/3), will be supported by coal production volumes of 20.8–21.9 million tonnes.

In addition, ITMG Management mentioned that the rise in production will be backed by a stripping ratio of up to 11 times, which is higher than the 2024 financial year, where the company’s stripping ratio stood at only 10 times.

On the financial side, ITMG will also allocate capital expenditure (capex) of around USD 50–65 million in 2025. This figure is not far from last year’s, where the company allocated capex of USD 58 million.

The 2025 capex budget will be used for improvements to hauling roads and port expansion, aimed at increasing operational efficiency.

In its presentation, ITMG Management also stated it is currently assessing the impact of the implementation of Indonesia's Coal Reference Price (HBA) as an export price reference. Although the policy, which took effect on 1 March 2025, is not yet seen to have significantly affected export sales.

Additionally, ITMG Management believes the implementation of B40 has the potential to drive up transportation and mining costs. Therefore, ITMG is preparing to anticipate this cost increase by optimising operations to maintain its profit margins. (KR/ZH)