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Jakarta Post

Bukit Asam plans to allocate Rp 6.5 trillion in capex in 2018

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, December 14, 2017   /   12:53 pm
Bukit Asam plans to allocate Rp 6.5 trillion in capex in 2018 A Bukit Asam coal-fired power plant in Muara Enim, South Sumatra. (Antara/ Zabur Karuru)

State-owned coal miner PT Bukit Asam (PTBA) plans to allocate Rp 6.5 trillion (US$455 million) in capital expenditure (capex) next year, mostly for the expansion of its businesses, PTBA president director Arviyan Arifin said in Jakarta on Thursday.

With the fund, the company will expand its downstream coal businesses, particularly to finance the construction of coal-fired power plants (PLTU), he said.

Bukit Asam will source the funds for the capital expenditure from both its internal cash and loans from third parties, including the possible issuance of bonds.

“We may issue bonds to finance the capex,” he said as reported by kontan.co.id, adding that the debt papers were planned to be issued in the first quarter of 2018.

Read also: Bukit Asam to go all-out in power plant business

Arviyan, however, said his company would assess the market condition before issuing debt papers.

He declined to comment on the amount that would be derived from third parties, but revealed that his company currently had cash worth Rp 4.5 trillion, ready to be allocated for capex. (bbn)