JAKARTA - Over the past year, India has been PT Baramulti Suksessarana Tbk (BSSR)'s largest market in terms of revenue. India comprised nearly 87% of BSSR's coal sales in 2015. But this dynamic has changed moving into 2016.
Eric Rahardja, Director of Finance of BSSR told reporters, "Now, India is everybody's playing field. It's just too crowded there, so that's why we shift our marketing strategy more to the domestic," at the company's Public Expose in South Jakarta's Sudirman Sahid Center.
According to him, this year's coal exported to India is predicted shrink to around 50% of the company's sales. While still holding on to the Indian market, management also leans on a domestic sales strategy backed by growing demand from coal fired power plants given government initiatives to boost the nation's energy supply.
Indonesian coal miner BSSR also relies on spot pricing strategy for other foreign sales. Among the chatter, BSSR plans to re-open transactions with buyers from China, a market that lacked demand in 2015. Countries such as Spain, Philippines and Korea made small contributions to the revenue in 2015 as well.
2015 proved a great year for BSSR; its sales escalated 19% to US$259 million and bottom line grew significantly to US$26 million. But given the circumstances this year, on-going weak global coal price and crowding of the Indian market, management doesn't seem confident they can top the revenue they generated last year.
Although sales to India's market continues to shrink, BSSR's affiliation with Indian based Tata Power extends positive aspects. The long lasting relationship between the two companies leaves a positive impression on BSSR's customers and potential buyers.
Eric added, "Tata right now they are not taking from us. But although they are not taking, of course as a shareholder they keep giving us support." (CH)