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View all search resultsGovt grants Bayan additional coal quota after Haji Isam buys stake
Prior to Haji Isam’s stake acquisition, Bayan Resources notified customers of a force majeure situation on Sept. 11 after approval for its revised coal production quota had not been issued.
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Piles of coal are seen on barges in Samarinda, East Kalimantan, on Aug. 16, 2022. (AFP/Adek Berry)
T
he government has awarded an additional coal production quota of 15 million to 20 million tonnes to three subsidiaries of publicly listed PT Bayan Resources this year, ending a permit delay that had forced the miner to declare force majeure and halt supply obligations to customers.
Tri Winarno, the minerals and coal director general at the Energy and Mineral Resources Ministry, said on Monday that the additional quota under the annual production plans (RKAB) framework had been issued to the three Bayan subsidiaries.
The three subsidiaries are PT Tiwa Abadi, PT Tanur Jaya and PT Fajar Sakti Prima. They notified customers of a force majeure situation on Sept. 11, after approval for their revised 2026 RKAB had not been issued.
Tri dismissed speculation that the permit delays were linked to sensitive corporate matters, including Bayan’s share acquisitions by local tycoon Andi Syamsuddin Arsyad, better known as Haji Isam, who is a close ally of President Prabowo Subianto. He said the holdup was caused "solely by the need to complete documentation and meet detailed administrative requirements and evaluation under the RKAB framework."
"It has been issued. Actually, there were no sensitive issues, yet people kept linking it to share purchases and the like," he said, as quoted by Bloomberg Technoz.
On Sept. 17, after Bayan announced force majeure due to a lack of additional quota approval, the company revealed that Haji Isam would acquire 30 percent of its outstanding shares, marking one of the most notable corporate maneuvers in Indonesia’s coal sector this year.
Through his investment vehicle PT Jhonlin Baratama, Haji Isam signed a conditional share purchase agreement on Sept. 16 with Bayan Resources' controlling shareholders, one of the richest individuals in the country, Low Tuck Kwong, and his daughter Elaine Low.
