JAKARTA – PT Mitrabara Adiperdana Tbk (MBAP), a coal producer, is shifting its focus to the renewable energy (EBT) business by allocating USD 70 million for capital expenditure (capex).

MBAP President Director Khoirudin stated that this transformation is a response to the pressures currently facing the coal sector.

Competition from suppliers in China and India, alongside the influx of Russian coal into the Asian market since 2023 through to 2025, has driven global coal prices downward. Additionally, policies such as B40 (biodiesel 40%) have also exerted pressure on the industry.

“These challenges have further convinced MBAP to realise its diversification strategy. We have been serious [about diversification] since 2022,” said Khoirudin during a public expose on Tuesday (27/5).

Meanwhile, MBAP Director Yulius Leonardo explained that 67% of the capex, or around USD 46.9 million, will be allocated to the renewable energy segment. The capex will be funded by retained earnings from 2024, equity capital, and third-party loans.

On the balance sheet side, MBAP’s net profit in the first quarter of 2025 fell to USD 1.61 million, a 62.47% drop from USD 4.29 million in the same period the previous year. Revenue also declined 12.84% to USD 50.14 million.

Despite facing headwinds in the coal business, MBAP remains strongly committed to expanding its renewable energy portfolio as part of its long-term diversification strategy.

For additional context, MBAP is pursuing two key renewable energy projects.

The company has established PT Masdar Mitra Solar Radiance (Solar Radiance), a solar panel joint venture targeting operational capacity of 51 MWp in 2025 (up from 17 MWp in 2024).

In addition, MBAP is developing PT Malinau Hijau Lestari (MHL) in North Kalimantan to produce 150,000 tonnes of wood pellets annually, with commercial operations expected to commence in 2026. (DH/KR/ZH)