Jakarta, 12 October 2023 - PT Kereta Api Indonesia (Persero) and PT Bukit Asam Tbk (PTBA) signed a short-term agreement for Tanjung Enim Baru - Tarahan and Tanjung Enim Baru - Kertapati coal transportation for the period 2023 - 2027, as well as an agreement cooperation framework for the development of Tanjung Enim Baru - Keramasan coal transportation.

KAI President Director Didiek Hartantyo and PTBA President Director Arsal Ismail signed the two agreements at the Jakarta Railway Center (JRC), Central Jakarta on Thursday, October 12, 2023.

The agreement serves as guideline for the implementation of Tanjung Enim Baru - Tarahan and Tanjung Enim Baru - Kertapati coal transportation using KAI's facilities and infrastructure, as well as the development of Tanjung Enim Baru - Keramasan coal transportation. These two agreements seek to optimize the use of trains for coal transportation.

According to KAI President Director Didiek Hartantyo, this collaboration is very important due to its large benefits. The purpose of KAI freight train is to support competitive logistics costs and reduce the externalities impact such as congestion, pollution, damaged roads, thus increase global competitiveness.

"One of the advantages of using trains to transport products is the large carrying capacity in comparison to other modes of transportation. One cargo can carry 50 tons or the size of 2 container trucks. In fact, one series of coal trains in South Sumatra can pull 60 cargos or 3,000 tons at once. It will take approximately 120 trucks if truck transportation is used," said Didiek.

Didiek stated that the BUMN (State-Owned Enterprises) synergy between KAI and PTBA is a manifestation of AKHLAK (BUMN's core value) to continue to collaborate, which is expected to achieve optimization and long-term commitment to the implementation of coal transportation in accordance with applicable laws and regulations.

At the same time, PTBA President Director Arsal Ismail stated his hope that the signing of this cooperation agreement could support PTBA's plan to increase coal production.

"The reliability of coal transportation strategically supports PTBA's performance. With the cooperation agreements signed, it is expected that PTBA can continue to contribute to maintaining national energy security," said Arsal.

Arsal hopes that this synergy will pave the way for PTBA and KAI to collaborate on such projects in the future. "As we signed the cooperation agreement for the development of Tanjung Enim Baru - Keramasan transportation, we hope that new collaborations will emerge in the future, opening up opportunities for new routes and developing other new businesses," he said.

The use of train for PTBA coal transportation is increasing year after year. In 2021, KAI transported a total of 25.4 million tons of PTBA coal. Then it increased by 13 percent in 2022 to 28.8 million tons. In 2023, PTBA's total coal transportation using trains is targeted to reach 29.2 million tons.

With the signing of this agreement, the volume of coal transportation will continue to increase until 2027, reaching 35 million tons for Tanjung Enim Baru - Tarahan and Tanjung Enim Baru - Kertapati.

"Hopefully, PT KAI would always be PTBA's mainstay partner in developing and advancing Indonesia," concluded Arsal.

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PT Bukit Asam (Persero) Tbk published this content on 12 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 October 2023 11:12:06 UTC.