Indonesian state coal miner PT Bukit Asam Tbk (PTBA) is expanding into downstream coal products and renewable energy, but the company's performance will remain driven by its core coal business for the foreseeable future, according to Director of Downstreaming and Product Diversification Turino Yulianto.

In an online press conference on September 7, Turino said the company is targeting non-coal businesses and coal derivative products to contribute about 20% of total revenue within three to four years.

Projects under preparation include coal-to-dimethyl ether (DME), methanol, synthetic natural gas, potassium humate and artificial graphite, alongside solar power development, he said.

Two DME projects have been included in national strategic projects and are targeted to begin construction in 2027, with feasibility studies under way. PTBA's solar portfolio has reached 1.2 MW, developed in collaboration with Pertamina New and Renewable Energy. 

Despite the diversification push, Turino said coal remains the company's core competency. PTBA's coal production reached 19.45 million tonnes during the first half of 2026, with revenue hitting 22.03 trillion rupiah ($1.25 billion) and net profit at about 2.65 trillion rupiah, according to the company's statement last week. "We're not straying from our core business," he said. 

Kiwoom Sekuritas analyst Sukarno Alatas said the company's near-term performance will be supported by coal sales volume, coal prices, sales mix and logistics efficiency, while downstream and renewables are long-term options.

The power generation, renewable energy and downstream businesses are considered long-term growth options. Sukarno noted that PTBA's short-term prospects will be supported by logistics infrastructure expansion, particularly the Tanjung Enim-Kramasan project with a capacity of 20 million tonnes annually and the expansion of Kertapati capacity from 8 million tonnes to 15.3 million tonnes annually, both of which have the potential to increase sales volume and cost efficiency.