Delta Dunia Group expands global business into mine ownership with the acquisition of Atlantic Carbon Group

05 Jun 2024

  • Delta Dunia Group has entered into a Stock Purchase Agreement (SPA) to acquire the Atlantic Carbon Group (ACG), one of the largest American anthracite producers operating four ultra-high-grade anthracite (UHG anthracite) mines in Pennsylvania.
  • The transaction is the Group’s first strategic move to expand into mine ownership and strengthen its portfolio by diversifying into future-facing commodities.
  • The transaction is supported by the Group’s strong cash position and existing syndicated financing facility.
  • Revenue and profit from ACG are incremental to the Group’s previously released revenue guidance for FY2024.
  • With the addition of the ACG revenues, the Group’s non-thermal revenue mix will increase to 28% in FY2024 from 19% in FY2023.
  • ACG’s operations have more than 25 years of mine life and long-term contracts with Tier-1 customers.

 

Jakarta, June 5, 2024 – PT Delta Dunia Makmur Tbk (Delta Dunia Group, IDX: DOID), through American Anthracite SPV I, LLC, a subsidiary under PT Bukit Makmur Internasional (BUMA International), has entered into a Stock Purchase Agreement (SPA) for strategic acquisition of Atlantic Carbon Group, Inc. (ACG)[1], the second largest UHG anthracite producer in the US[2]. The transaction is expected to complete in June 2024.  Further details of the transaction will be announced upon completion of the transaction.

The USD122.4 million deal secures ownership of four producing UHG anthracite mines in Pennsylvania.  After the acquisition, the Group will become a key UHG anthracite producer globally. The transaction further diversifies the Group’s business geographically and into future-facing commodities, in line with its transformation strategy.

The transaction is financially attractive due to its favorable valuation, leverage, and earnings impact, and it broadens the Group’s relationships with key customers and stakeholders. With the transaction, the Group assumes control of ACG’s operations. UHG anthracite is essential for the commercial production of low-carbon steel (LC Steel) and can reduce carbon emissions from the production process by up to 74%[3]. The Group’s anthracite reserves are sufficient to support mining activities for more than 25 years, and in turn, production capacity of up to 25 million tons of LC Steel annually.

Ronald Sutardja, President Director of Delta Dunia Group, stated, “This transaction is a significant milestone for the Group. Upon completion, we will achieve a number of our strategic objectives. The Group will become a mine owner for a commodity critical for the production of LC Steel. We will expand our geographic footprint into another key mining region. And, the deal further diversifies our revenue towards our ESG target of lowering our thermal coal revenue to below 50% of our total revenue by 2028.”

TRANSACTION BOOST FOR THE GROUP

The Group’s expansion into the US enables it to capitalize on the increasing demand for UHG anthracite, which is used in electric arc furnaces (EAFs). Over the past decade, anthracite exports from the US have grown at a compound annual growth rate (CAGR) of 10.6% from FY2014 to FY2023[4]. All forecast steelmaking capacity expansions in the US and Europe are for EAFs, and UHG anthracite from the US will be a crucial supply source for EAFs globally. In addition, the governments in a number of key jurisdictions, specifically the UK and German governments, are incentivizing the conversion of Blast Furnaces to EAFs.

The transaction is supported by the Group’s strong cash position, and USD750 million syndicated financing facility with PT Bank BNI (Persero) Tbk and PT Bank Mandiri (Persero) Tbk. The ACG operations are expected to add USD120 – 130 million of revenue per year[5]. These projections are also incremental to the Group’s revenue guidance for FY2024 which was released previously based on existing operations.

SUSTAINABILITY TRANSFORMATION REMAINS ON TRACK

The transaction advances the Group’s strategic goal of diversifying its portfolio and reducing its dependence on thermal coal. With the addition of the ACG operations, revenue from future-facing commodities will increase from 19% in FY2023 to 28% in FY2024.

In addition to cutting carbon emissions through the use of UHG anthracite in EAFs, ACG operations enhance environmental outcomes with sustainable mining practices that remediate historical environmental damage. ACG rehabilitates land mined over a century ago, transforming it into areas suitable for development, recreation, and conservation. This includes reopening old mining tunnels to remove remaining materials, implementing erosion and sediment control measures, reshaping the landscape to its natural contours, and reforesting areas with grass and trees.

***

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):

Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia, Australia and at the completion of this transaction, America. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest miners in Indonesia and Australia (through BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (BTech), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

[1] ACG includes Atlantic Carbon Group, Inc., Wildcat Carbon Processing, LLC, American Carbon Warehousing, LLC, Newcastle Anthracite Company, and The Central Pennsylvania Anthracite Company, LLC.
[2] Based on Q1 2024 anthracite production profile.
[3] 1 tonne of steel produced in a Blast Furnace – Basic Oxygen Furnace produces 1.36 tonnes of CO2e, whereas 1 tonne of steel in an Electric Arc Furnace with Anthracite produces 0.35 tonnes of CO2e.
[4] McCloskey Official Price Index for Settlements
[5] Expected revenue in FY24-28 based on the Group’s forecasts, supported by existing contracts. Stated on a consolidated basis.

BUMA Australia Secures Contract with Whitehaven for Pre-strip Mining Services at Blackwater Mine

18 Apr 2024

  • BUMA Australia Pty Ltd (BUMA Australia), a wholly owned subsidiary of PT Bukit Makmur Mandiri Utama (BUMA), under PT Delta Dunia Makmur Tbk (Delta Dunia Group), has entered into a contract with Blackwater Operations Pty Ltd, a subsidiary of Whitehaven Coal Mining Limited, to provide pre-strip mining services at the Blackwater mine in Queensland, Australia.
  • The contract is expected to generate annual production of around 36 million bank cubic meters (bcm) of overburden removal, contributing significantly to the company’s revenue.
  • The contract with Whitehaven Coal, following its acquisition of the Blackwater Mine from BHP Billiton and Mitsubishi Alliance (BMA), serves as a testament to BUMA Australia’s expertise and experience in the region, where it has been providing pre-strip and coal mining services at three mines, including Blackwater.
  • The new contract keeps Delta Dunia Group on track to diversify and reduce reliance on thermal coal, following its record-breaking FY2023 performance in which metallurgical coal and infrastructure contributions accounted for a significant 19% of the Group’s FY2023 revenue.

 

Jakarta, April 16, 2024 – PT Delta Dunia Makmur Tbk (Delta Dunia Group) announced that its subsidiary, PT Bukit Makmur Mandiri Utama (“BUMA”), through its wholly owned Australian subsidiary, BUMA Australia Pty Ltd (“BUMA Australia”) has entered into a contract with Blackwater Operations Pty Ltd, a subsidiary of Whitehaven Coal Mining Limited, to provide pre-strip mining services at Blackwater mine, a metallurgical coal mine located in the Bowen Basin in central Queensland, Australia.

The contract is expected to contribute significantly to BUMA Australia’s revenue until June 2026, and an average annual production of approximately 36 million bcm of overburden removal. The contract with Whitehaven Coal is a continuation of the services that BUMA Australia had provided at Blackwater mine with BHP Billiton and Mitsubishi Alliance (BMA). Whitehaven Coal acquired Blackwater and Daunia mines from BMA through an Asset Sale Agreement which achieved completion on April 2, 2024.

Dian Andyasuri, Director at Delta Dunia Group, said, “We are pleased that Whitehaven Coal has recognized BUMA Australia’s extensive expertise at the Blackwater mine – a true acknowledgment of our legacy of excellence in the region. This new contract shows that BUMA Australia’s stellar reputation and expertise are recognized and trusted by industry-leading mine owners. BUMA and Delta Dunia Group are committed to fostering strong, enduring relationships and prioritizing the success of our clients.”

PROVEN PROFICIENCY AT BLACKWATER

Since May 2012, BUMA Australia has been a key player at the Blackwater mine, partnering successfully with BMA. This experience has refined BUMA Australia’s capabilities in truck and excavator pre-strip operations, enhancing its understanding of the site’s dynamics and operational challenges. Now, with the mine’s ownership under Whitehaven Coal, BUMA Australia is ready to continue its legacy of excellence and ensure sustained success at Blackwater mine.

Colin Gilligan, CEO of BUMA Australia, said, “This new contract cements BUMA Australia’s reputation in the Bowen Basin, where we provide pre-strip and coal mining services to the metallurgical coal industry at the Blackwater, Goonyella Riverside, and Saraji mines, as well as at the Broadmeadow East and Burton mines. Following Whitehaven’s acquisition of the Blackwater mine from BMA, we are eager to contribute to their operational success. Our track record of safe, efficient, and consistent performance at Blackwater strengthens our confidence in our ability to deliver for Whitehaven Coal.”

SUSTAINING MOMENTUM FOR GROWTH & DIVERSIFICATION

The contract with Whitehaven Coal at the Blackwater mine marks a significant milestone for Delta Dunia Group, sustaining its growth trajectory as demonstrated by record-breaking performance in overburden removal, revenue, and EBITDA in FY2023. This achievement is reinforced by a 28% year-over-year increase in production volume in Australia, supported by significant contract wins with BMA’s Saraji mine and Bowen Coking Coal’s Burton mine.

Additionally, BUMA Australia’s contract for mining services at Commodore mine with Millmerran Power Management Pty Ltd will conclude on August 31, 2024. The exit from the thermal coal mine, located adjacent to the Millmerran Power Station in Southeast Queensland, aligns with the Group’s strategy to reduce its thermal coal operations. This move underscores the Group’s commitment to enhancing its portfolio with a greater focus on metallurgical coal and other minerals.

Both the above corporate actions align with the Group’s strategy to diversify and reduce its reliance on thermal coal to below 50% of total revenue by 2028. The Group’s strategic transformation is already yielding results, with metallurgical coal and infrastructure contributions accounting for 19% of the Group’s FY2023 revenue.

***

About PT Delta Dunia Makmur Tbk (Delta Dunia Group)
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

About BUMA Australia
BUMA Australia was established in 2021 to acquire the Open Cut Mining business of Downer (which has been in continuous operation since 1922). This acquisition included the transition of people, mining services contracts, assets, systems and IP from a business which successfully provided mining services in diverse locations and across many commodities. With a strong focus on delivering optimal outcomes for clients and a strong commitment to safety, innovation, and technology, BUMA Australia is one of Australia’s leading mining contractors.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group’s Subsidiary Secures Key Consent from 2026 Senior Notes Bondholders, Affirming Strong Trust in Financial and Growth Strategies

  • Over 50% of the bondholders of Delta Dunia Group’s subsidiary, PT Bukit Makmur Mandiri Utama, agreed to remove restrictive covenants pertaining to the 7.75% Senior Notes due 2026 (“BUMA 2026”), enabling greater capital management flexibility as the Group continues to pursue accretive growth and improve returns to shareholders. 
  • From the Consent Solicitation and Tender Offer, bondholders of BUMA 2026 responded positively, tendering a total of USD 152.9 million, which represents approximately 42% of the outstanding principal amount. This was achieved by the Early Offer and Consent Deadline of March 18, 2024, New York Time (ET).
  • Additionally, 11% of bondholders chose to give their consent only, maintaining their investment in the bonds even after the removal of covenants, affirming trust in the Group’s financial stability and growth strategy.
  • Repayment of the tendered notes is primarily funded through bank borrowings, in line with the Group’s financing diversification strategy.
  • The Group’s strong balance sheet, combined with its commitment to financial prudence through active management of its capital structure and debt profile, has enabled a series of successful refinancing of its bank loans and bonds at attractive rates, effectively improving the Group’s debt profile.
  • The strategic initiative to reduce debt exposure is well underway as the Group continues to uphold a robust balance sheet for growth.

 

Jakarta, March 28, 2024 – PT Delta Dunia Makmur Tbk (Delta Dunia Group) is pleased to announce that its subsidiary, PT Bukit Makmur Mandiri Utama (BUMA), which is 99.99% owned by the Group, has received the requisite consents for its early offer and consent solicitation related to the terms and conditions of the 2026 Senior Notes. BUMA issued these notes in the amount of USD 400 million, with a coupon rate of 7.75% per annum, maturing in 2026.

Reflecting strong investor confidence, the Group has received a resounding 53% approval from bondholders to amend the terms and conditions of BUMA 2026. This amendment allows the Group to pursue profitable inorganic growth initiatives, providing the necessary flexibility to advance key projects and explore potential acquisitions, all in line with the Group’s strategic objectives. This change heralds a greater flexibility in executing growth strategies in a dynamic market, while ensuring optimal returns to shareholders.

As of March 18, 2024, New York time (ET), 42% of the bondholders have consented to the early tender offer of BUMA 2026, totaling USD 152.9 million. This allows the Group to optimize its gearing levels and further advance its capital management diversification strategy. With reduced debt levels, the Group continues to strengthen its balance sheet, maintaining a laser focus on driving shareholder returns and pursuing profitable growth.

Dian Andyasuri, Director at Delta Dunia Group, said, “We are delighted with the strong support from the BUMA 2026 bondholders, as reflected in the outcome of the early tender offer and consent solicitation. The Group remains dedicated to strengthening our balance sheet while strategically investing in the long-term growth of our business. Our ongoing corporate diversification and transformation strategy, aimed at advancing the global shift towards a low-carbon economy, is fundamental to our robust financial strategy and the significant growth it is facilitating.”

STRENGTHENING BALANCE SHEET 

2023 saw Delta Dunia Group significantly strengthening its balance sheet and achieving a Net Debt to EBITDA ratio of 1.65x, the lowest in a decade, a notable decrease from 2.19x in 2022.  The Group also experienced a substantial increase in operating cash flows, reaching USD 376 million, up 91% from the previous year, while free cash flow increased to USD 233 million. These improvements were driven by a record EBITDA performance, improved working capital management, and a higher tax refund achieved for the Group.

DIVERSIFICATION OF FUNDING 

Notably, over the last 12 months, the Group secured comprehensive financing facilities, including (i) a sixty-nine month USD 750 million syndicated financing facility with PT Bank BNI (Persero) Tbk and PT Bank Mandiri Tbk for refinancing and growth; (ii) the first Sharia financing syndicated facility of USD 60 million from PT Bank Muamalat Tbk; and (iii) the first bond issuance in IDR, totaling IDR636 billion (approximately USD 41 million), expanding beyond the Group’s existing USD bond facilities.

Through diversifying its capital sources, the Group secured favorable refinancing terms for BUMA 2026 and bank loans, thereby improving its debt maturity profile. The early tender offer, coupled with sustained robust cash flow and broader access to funding, has significantly reduced BUMA 2026 debt obligations for 2026 from USD 366 million to USD 213 million. This strategic financial restructuring not only enhances our debt repayment manageability but also highlights the Group’s commitment to enhancing shareholder value through prudent capital management, aligning with its long-term strategies.

Dian further added, “Our strong financial discipline has led to record-low debt-to-EBITDA ratios, even as we continue to work on deleveraging our balance sheet. Coupled with our continuously proactive capital structure strategy, we have sustained a strong net cash position, which will ensure that the Group remains well-placed to invest for profitable growth, weather challenges, and identify profitable bolt-on growth opportunities. This approach not only drives profitability and increases shareholder value but also aligns with our commitment to transition towards a low-carbon economy.”

***

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):

Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group Drives Net Profit of USD 36 million for FY2023; 26% increase from previous year

14 Mar 2024

  • Corporate diversification and transformation strategy successfully yielding results, delivering sustained financial performance that surpassed guidance.
  • Revenue increased 18% YoY, hitting a record high of USD 1.8 billion for FY2023.
  • Strong underlying performance with EBITDA at USD 412 million for FY2023, a 13% increase YoY.
  • Strong performance attributed to contract wins, record coal production, proactive cost management strategies and increased diversification to metallurgical coal which now contributes 19% of revenue.
  • Strong operating cashflow increased 91% YoY to reach USD 376 million in FY2023, resulting in a strong cash position of USD 543 million to support our business and fuel future growth through acquisitions. Concurrently, we’ve undertaken a strategic initiative to reduce our debt exposure. On March 5th, 2024, we announced a bond tender offer exercise and consent solicitation to all holders of our outstanding 7.75% Senior Notes due in 2025, with the aim of purchasing for cash any and all of the outstanding balance.
  • Successful refinancing activities at an attractive rate, and significantly deferring the due date of the Group’s loans. This is a result of the flawless execution of the Group’s strategy to diversify funding sources via first-ever Sharia financing, first ever IDR Bond and capped with a substantial facility from major Indonesian state-owned Banks.

 

Jakarta, March 13th, 2024 – PT Delta Dunia Makmur Tbk (Delta Dunia Group), the parent company of PT Bukit Makmur Mandiri Utama (BUMA), BUMA Australia Pty Ltd (BUMA Australia), PT Bukit Teknologi Digital (B-TECH), and PT BISA Ruang Nuswantara (BIRU), reported sustained performance for the full year 2023 (FY2023), surpassing guidelines.

Key Consolidated Financial Highlights:

USD mn, unless stated 4Q23 4Q22 YoY Change FY23 FY22 YoY Change
Revenue 470 405 16% 1,833 1,554 18%
Finance cost (22) (20) 12% (88) (70) 26%
EBITDA 111 93 19% 412 365 13%
Operating Profit 45 31 48% 152 131 16%
Net Profit/(Loss) 14 8 78% 36 29 26%

In FY2023, Delta Dunia Group demonstrated record-breaking performances across overburden removal, revenue, and EBITDA, exceeding the Group’s guidance for the year. This success was largely driven by a record overburden removal, marking a 14% YoY increase, and production volumes in both Indonesia (up by 10% YoY) and Australia (up by 28% YoY). This was supported by a strong uptake from customer contract wins, including BMA’s (BHP and Mitsubishi Alliance) Saraji and Burton mines in Australia.

Cash costs, excluding fuel per bcm, increased by 8%, driven largely by the ramp-up in volumes at BUMA Australia aimed at meeting customer demands. Further, employee costs and the cost of spare-parts – including materials for tires, and drilling & blasting activities – also increased due to inflationary pressures. However, these increases were partially offset by the Group’s continued efforts in driving cost efficiencies through technology and operational-led excellence.

Capital Expenditure (CAPEX) declined by 20% YoY, bringing it to USD 121 million. This reduction was attributed to the successful completion of project ramp-ups in Indonesia, aligning within the 2023 guidance of USD 105 million to USD 145 million. Maintaining strict control over CAPEX remains the Group’s priority.

Corporate Diversification Paying Off

Dian Andyasuri, Director at Delta Dunia Group, emphasized the strategic transformation of the company’s product mix in response to global shifts towards a low-carbon economy. “As we are adapting to the declining demand for thermal coal, we’re capitalizing on the robust demand for metallurgical coal, which continues to be pivotal for steel production. This intentional transition is a cornerstone of our diversification strategy, already yielding substantial results. Metallurgical coal and infrastructure now represent a significant 19% of our revenue, steering us towards our goal of reducing our reliance on thermal coal to 50% by 2028. Such progress reflects our commitment to sustained performance and strategic growth.”

Successful Capital Management Strategy

In FY2023, Delta Dunia Group significantly strengthened its balance sheet and achieved a 10-year low net debt to EBITDA ratio of 1.65x, a notable decrease from 2.19x in FY2022. The Group also experienced a substantial increase in operating cash flows, reaching USD 376 million, up 91% from the previous year. Additionally, free cash flow rose to USD 233 million. These improvements were driven by a record EBITDA performance, improved working capital management, and a higher tax refund achieved for the Group.

Through its share buyback program, the Group successfully repurchased 1,284,502,100 shares. This significant buyback represents approximately 14.9% of Delta Dunia Group’s outstanding shares as of August 4th, 2023. Furthermore, in FY 2023, the Group purchased USD 34.3 million of its Senior Notes. These strategic financial moves not only reflect the Group’s commitment to enhancing shareholder value but also its prudent management of capital, aligning with its long-term financial strategies.

The diversification of funding sources in FY2023 stood as a testament to the sustained trust from both existing and new financial partners, marking a significant milestone for Delta Dunia Group. Notably, the Group secured comprehensive financing facilities, including (i) a 6-year USD 750 million Syndicated financing facility with PT Bank BNI (Persero) Tbk and PT Bank Mandiri Tbk for refinancing and further growth plans; (ii) the first Shariah financing syndicated facility of USD 60 million from PT Bank Muamalat Tbk; and (iii) the first IDR bonds issuance of IDR 636 billion (USD 41 million), expanding beyond the Group’s existing USD bond facilities. Through the successful diversification of its capital sources, the Group has achieved favorable refinancing for the 2026 debt repayment obligations, which has improved its debt maturity profile.

Dian further added, “Delta Dunia Group has achieved record-low debt levels as a result of our strong financial discipline and the deleveraging of our balance sheet. Coupled with our proactive capital structure strategy, we were able to achieve a strong net cash position, which will ensure that the Group remains well-placed to weather current market uncertainties and identify opportunities for continued growth. Concurrently, our ESG commitments anchor our efforts in advancing the global shift towards a low-carbon economy. In 2023, our ESG efforts achieved a Sustainalytics score of 32, putting us in the second-highest performer in the global coal sub-industry and among the top 15% in the global oil and gas industry, highlighting our strong commitment to ESG principles. With a dual focus on fiscal responsibility and environmental stewardship, we are dedicated to driving profitability and increasing shareholder value, ensuring Delta Dunia Group’s resilience and prosperity in a sustainable future.”

#####

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

BUMA Completes the Issuance of its 2023 Series I Bonds

03 Jan 2024

Jakarta, January 2, 2024PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of PT Delta Dunia Makmur Tbk. (Delta Dunia Group or “DOID”), proudly announced the successful issuance and listing of BUMA 2023 Series I Bonds (BOLD) on the Indonesia Stock Exchange (IDX), marking a historic entry into the Indonesian bond market.

The BUMA 2023 Series I Bonds have been issued with a total nominal value of Rp636,620,000,000 (six hundred thirty-six billion, six hundred twenty million Indonesian Rupiah), divided into three series: Series A with a nominal value of Rp422,910,000,000 at a fixed interest rate of 8.45% per annum, maturing in 370 calendar days with a bullet payment upon maturity; Series B with a nominal value of Rp200,570,000,000 at a fixed interest rate of 9.10% per annum, maturing in 3 years with a bullet payment upon maturity; and Series C with a nominal value of Rp13,140,000,000 at a fixed interest rate of 9.70% per annum, maturing in 5 years with a bullet payment upon maturity. PT Mandiri Sekuritas and PT Sucor Sekuritas were the appointed Underwriters for the Bond Issuance.

Indra Kanoena, President Director of BUMA, stated, “We extend our deepest gratitude to our investors for their trust in BUMA’s strategic vision. The BUMA Series I Bond is a key component of our strategic diversification of financing and demonstrates our commitment to building strong partnerships with institutional investors.”

The Bonds Interest payments are scheduled quarterly, commencing from the Date of Issue. The respective maturity dates for each series are January 8, 2025, for Series A, December 28, 2026, for Series B, and December 28, 2028, for Series C.

Silfanny Bahar, Director of BUMA, commented, “We will be utilizing the proceeds to support further growth whilst building on our sterling history of our credit metrics. Our balanced approach to allocating these funds is aimed at both capital expenditure and enhancing operational efficiency. This commitment is integral to BUMA’s strategy for delivering long-term value and achieving a positive impact in the communities where we operate.'”

The BUMA 2023 Series I Issuance has broadened BUMA’s financial sources, reflecting the diverse and robust support of its banking partners – PT Bank Mandiri Tbk., PT Bank Negara Indonesia Tbk., Indonesia Eximbank, PT Bank Muamalat Indonesia Tbk., and PT Bank JTrust Indonesia Tbk. Together, with a comprehensive range of financing solutions, including Bonds in USD and IDR as well as Leasing financing schemes, BUMA has showcased its capacity to attract a broad spectrum of investors, affirming their trust and belief in the company’s strategic direction and growth potential.

#####

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

BUMA Secures USD 750 Million Syndicated Financing Facility with BNI

Jakarta, January 2, 2024 – PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of PT Delta Dunia Makmur Tbk. (Delta Dunia Group), announced an underwritten financing facility of USD 750 million from PT Bank Negara Indonesia (Persero) Tbk. (BNI). The facility is set for a duration of 69 months, concluding in 2029.

The facility plays a strategic role in BUMA’s financial management, enabling refinancing efforts and supporting growth initiatives. Furthermore, it empowers BUMA to uphold its trajectory of growth and operational excellence by providing the capital required to advance key projects and pursue potential acquisitions, all in alignment with its strategic objectives.

Indra Kanoena, President Director of BUMA, commented, “This financing demonstrates BNI’s trust in our strong market position and strategic acquisition capabilities. We are grateful for this partnership, which offers competitive terms and underscores our status as a key international mining contractor. The facility will be strategically utilized to enhance our corporate operations and drive our growth plans, contributing significantly to our ongoing commitment to operational excellence and sustainable growth.”

Ditya Maharhani Harninda, Senior Vice President Corporate Banking 2 BNI, stated, “Our collaboration with BUMA, a significant player in the Indonesian and Australian mining sectors, is highly valued. This partnership aligns with our strategy to support prominent corporates like BUMA, recognized not only for their industry leadership but also for their commitment to deliver on Environmental, Social, and Governance (ESG) practices. This financing facility is a reinforcement of our portfolio in the segment and a testament to our commitment to fostering operations that prioritize sustainable and responsible business practices.”

As BUMA celebrates its 25th anniversary, this facility marks a significant milestone, reinforcing its commitment to stakeholders, society, and the environment. “Looking ahead, we are excited to continue our journey of growth, driving industry advancements, and positively impacting the communities we serve. We are grateful for the support from our financial partners of Bank Mandiri, BNI, Bank Muamalat, JTrust Bank, and Indonesia Eximbank, along with the global and IDR bondholders and leasing companies , all contributing to BUMA’s journey,” concluded Indra.

#####

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

25 Years of BUMA’s Journey in Strengthening the Mining Industry and Making a Positive Impact on Society

07 Dec 2023

Jakarta, December 7, 2023 – PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of PT Delta Dunia Makmur Tbk. (Delta Dunia Group), celebrates its 25th anniversary today. This year’s celebration theme, “25 Years of BUMA SIGNIFICANCE: Providing Benefits for Indonesia,” emphasizes BUMA’s continuous commitment to delivering added value and benefits to all stakeholders, as well as fostering a positive impact on the environment and wider society.

Indra Kanoena, President Director of BUMA, said, “BUMA has embarked on an extraordinary journey, starting as a mining subcontractor to evolving into one of the largest mining service companies in Indonesia and Australia. For 25 years, BUMA has focused on creating operational excellence, driving innovation, and firmly upholding ESG principles to build a sustainable mining industry.”

Originating as a mining subcontractor in 1998, BUMA grew into a major mining services company later acquired by Delta Dunia Group in 2009. BUMA has continuously expanded, becoming a leading independent mining service provider in Indonesia. In 2021, BUMA acquired BUMA Australia (BUMA Australia Pty Ltd) from Downer EDI Limited (Downer), extending its mining services to one of the world’s key mining centers and diversifying its mining commodities to include metallurgical coal, supporting rapid company growth. Since the acquisition of BUMA Australia in 2021, BUMA Australia’s order book has quadrupled, further boosting the company’s performance. With a strong and long-standing history of customer relationships with leading mining companies in Indonesia and Australia, BUMA is supported by over 16,000 experienced employees and has successfully held the second-largest market share in Indonesia’s mining sector and has become a top contractor in Australia.

Enhancing Operational Excellence and Innovation

BUMA offers comprehensive mining services covering end-to-end operations, including overburden removal, coal mining, transportation, and mine rehabilitation. BUMA excels in managing complex and challenging mining operations, including those on small islands, solving high-level technical issues such as managing seawater seepage, handling mud, anticipating and managing geotechnical potentials and tidal waves, and even relocating rivers to minimize environmental impacts and achieve optimal operational efficiency.

This operational excellence is supported by the company’s commitment to implementing innovative technology in the mining sector and driving continuous improvement projects. One of BUMA’s outstanding innovations is the integration of the latest fleet management system for optimizing mining operations, as well as the application of machine learning algorithms capable of predicting potential component damage in heavy equipment, known as Predictive Maintenance (PdM).

“At BUMA, we recognize the importance of innovation in boosting productivity, promoting efficiency, and ensuring operational sustainability. We continually explore pioneering technology to revolutionize equipment maintenance and management. This technology application is also part of the company’s sustainability strategy,” stated Indra.

Strong Financial Performance

BUMA’s financial performance continues to show rapid growth, breaking revenue records year after year. During the first nine months of 2023, BUMA achieved record revenue of USD 1.363 billion with an EBITDA of USD 308 million, resulting in a net profit of USD 30 million. In the same period, BUMA demonstrated robust cash flow capacity, with operational cash flow surging to USD 237 million. With the continually increasing EBITDA and a net debt-to-EBITDA ratio of 1.85x, the company is poised to maintain a strong credit metric.

From December 4th to 8th, 2023, the company commenced the BUMA 2023 Bond Offering I, marking a significant step in the company’s diversification strategy to expand financing options comprising Bonds, Conventional and Sharia Bank Loans, as well as Leasing financing schemes, all in US dollars.

Silfanny Bahar, Director of BUMA, said, “We are proud to have entered the Indonesian market through the BUMA 2023 Bond Offering I initiative. This strategic step is a historic milestone for BUMA and further solidifies its credibility as a leading mining service company in Indonesia and Australia.”

ESG Commitment

BUMA holds a strong commitment to ESG and supports government initiatives to achieve Indonesia’s emission-free target by 2050, as outlined in the strategies and framework of the BUMA parent company, Delta Dunia Group.

This ESG commitment is also reflected in the company’s business diversification strategy into low-carbon commodities such as metallurgical coal, as well as corporate programs supporting social and economic welfare in BUMA’s operational areas. Among these programs are the “Wifepreneur” program for the wives of employees, the BUMA School education program to increase the number of certified skilled workers ready to enter the workforce, and the “Jika Maka” training program for individuals around mining locations who have discontinued their education.

“We wouldn’t be in our current position without the support of our stakeholders, including the government, customers, partners, communities, and all BUMA employees in Indonesia and Australia. Thank you for growing with BUMA and supporting us for the past 25 years. We will continue to pursue our goals, creating optimal value for all stakeholders, and making a positive impact on the environment and society,” concluded Indra.

###

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):

Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

BUMA Commences First Rupiah Bond Offering to Strengthen its Position as the Leading Mining Services Company in Indonesia and Australia

04 Dec 2023

Jakarta, December 4, 2023 – PT. Bukit Makmur Mandiri Utama (BUMA), a subsidiary of PT. Delta Dunia Makmur Tbk. (Delta Dunia Group/”DOID”), will, for the first time, offer BUMA 2023 Bond Offering I (“Bonds”) with a maximum value of Rp1.5 trillion. The Book-building Period begins on Monday, December 4, 2023, and will conclude on Friday, December 8, 2023. This strategic initiative marks a historic milestone for BUMA in time with its 25th anniversary. BUMA’s inaugural entry into the Indonesian bonds market further strengthens its credibility as a leading mining services company in Indonesia and Australia.

Indra Kanoena, President Director of BUMA, stated, “The BUMA 2023 Bond Offering I is a testament to our commitment to continually deliver long-term value to all stakeholders. We believe that this bond issuance will strengthen the confidence of domestic investors to support sustainable mining industries.”

The usage of these bond proceeds is intended to drive BUMA’s growth, including increasing capital for business development and strengthening operational efficiency strategies. The BUMA 2023 Bond Offering I consists of three series: series A with a duration of 370 (three hundred seventy) calendar days, series B with a duration of 3 (three) years, and series C with a duration of 5 (five) years, starting from the issuance date. In this corporate action, BUMA has appointed PT Mandiri Sekuritas and PT Sucor Sekuritas as the Lead Underwriters of the Bond Issuance.

Silfanny Bahar, Director of BUMA, mentioned, “BUMA has a proven track record in robustly managing the company’s cash flow. Our future focus is to continue enhancing cash flows from clients in Indonesia and Australia, managing costs through innovative technology utilization, and expanding our business in line with our strategy. We are committed to maintaining solid financial management, especially in upholding strong credit metrics and strengthening our dominant position in the mining sector, both in Indonesia and Australia.”

BUMA is the second in terms of market share in Indonesia’s mining services sector and is recognized as a respected tier 1 contractor in Australia. The company boasts a robust order book, encompassing long-term partnerships and collaborations with leading mining companies across various locations, commodities, and mining disciplines in Indonesia and Australia. With a steadfast commitment to environmental, social, and governance (ESG) principles aiming for net-zero emissions by 2050, BUMA has significantly contributed to the progress of Delta Dunia Group, evident in the Group’s achievement as the second-highest performer in the global coal sub-industry, as per the Sustainalytics ESG Risk Rating assessment. Delta Dunia Group has notably progressed in its ESG Risk Rating, improving from 42.4 in 2022 to 32.7 in July 2023, marking a 10-point increase (or 25%).

BUMA’s performance for the nine months in 2023 has set a record revenue of USD1.363 billion with an EBITDA of USD308 million, resulting in a net profit of USD30 million. This performance reflects excellent financial management and rapid company growth. During the same period, BUMA demonstrated robust cash flow capabilities, with operational cash flow soaring to USD237 million. With continuously increasing EBITDA and achieving a net debt-to-EBITDA ratio increase of 1.85x, the company is poised to maintain strong credit metrics.

“The BUMA 2023 Bond Offering I further diversifies our financing strategy, consisting of Bonds, Conventional and Sharia Bank Loans, as well as Leasing financing schemes, all in US Dollars. This strategic step solidifies our commitment to transparency, accountability, and engagement with our market’s investment community,” concluded Indra.

###

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communications
South Quarter Tower A, Penthouse Floor
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group Increases Stakes in Asiamet to 34.5%, Strengthening Commitment to Business Diversification

17 Nov 2023

Jakarta, 15 November 2023 – PT Delta Dunia Makmur Tbk. (“Delta Dunia Group” or IDX: DOID) is pleased to announce the successful non-brokered private placement of USD 4 million (“Placement”) with AIM-listed Asiamet Resources Limited (“Asiamet” or AIM: ARS). This Placement increases Delta Dunia Group’s shareholding by 366,891,000 shares, which increases the holding from 24.2% to 34.5%, solidifying its position as Asiamet’s largest shareholder.

Asiamet’s flagship BKM Copper Project in Central Kalimantan has concluded its Feasibility Study. The Placement funds will drive the advancement of BKM through project engineering, contracting works, and general working capital.

Ronald Sutardja, President Director of Delta Dunia Group, stated “We continue to support Asiamet as it continues to advance the BKM Copper project through the next stages of engineering. Copper remains an important strategic metal and is central to the energy transition initiative. Our various teams are working closely with Asiamet, demonstrating the commitment by the Delta Dunia Group.”

By working with Asiamet and leveraging PT Bukit Makmur Mandiri Utama’s (BUMA) core skills in mining services in Indonesia, Delta Dunia Group believes this will become a part of our broader commodity diversification strategy. Delta Dunia Group remains dedicated to advancing its ESG strategy, specifically, building on the group’s core competencies and providing the resources required in a transiting world, in the most efficient and sustainable way.

“Committed to both sustainability and growth, our increased stake in Asiamet strongly supports our diversification strategy, particularly focusing on forward-looking commodities such as copper. This step underscores Delta Dunia Group’s dedication to strategic growth and adapting to the dynamic commodities landscape, emphasizing our commitment to long-term success while prioritizing sustainability,” Ronald concluded.

###

About PT Delta Dunia Makmur Tbk.
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communication
South Quarter Tower A, Penthouse Floor Unit A-I
Jl. R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430 Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group’s Nine Months 2023 Results Mark a Transformative Shift Towards Diversified Revenue Streams

01 Nov 2023

Jakarta, October 31, 2023Delta Dunia Makmur Tbk (Delta Dunia Group), the parent company of PT Bukit Makmur Mandiri Utama (BUMA), BUMA Australia Pty Ltd (BUMA Australia), PT Bukit Teknologi Digital (B-TECH), and PT BISA Ruang Nuswantara (BIRU), announces a strong operational performance and revenue growth during January to September 2023 period.

Key highlights include:

  • Achievement of record quarterly revenue of USD 506 million in Q3 2023, contributing to substantial revenue growth to USD 1.36 billion or a 19% increase in nine months year-on-year (YoY).
  • BUMA and BUMA Australia exhibited strong operational performance, with a 12% YoY increase in overburden volume (OB) to 462 million bank cubic meters (bcm) and the production of 64 million metric tons (MT) of coal. The growth was predominantly in Australia, aided by drier weather in Indonesia and the ramp-ups of new contracts in Australia.
  • EBITDA increased to USD 302 million, rising by 11% YoY, despite challenges such as higher inflation costs and delays in government approvals for revised coal production quotas (RKAB) in Q3 2023. Notably, a record quarterly EBITDA of USD 127 million was achieved in Q3 2023, reflecting a consistent increase in the EBITDA margin since Q1 2023.
  • Net profit increased by 5% YoY, impacted by higher finance costs driven by an increase in base rate and foreign exchange translation losses due to Rupiah depreciation.
  • Capital Expenditure (Capex) decreased by 31% YoY to USD 74 million, attributed to project ramp-up completions in Indonesia, aligning with Delta Dunia Group’s full-year target of USD 105 million to USD 145 million. The Group will continue to maintain tight control over Capex.
  • Operating cash flow increased to USD 227 million, primarily due to higher EBITDA, improved working capital management, and an increased tax refund, resulting in a positive free cash flow of USD 159 million and a higher cash level of USD 230 million.
  • Although Q3 2023 saw higher EBITDA, the Group’s Operating Cash flow and Free Cash Flow for the quarter were marginally lower compared to Q3 2022, mainly due to the collection of over USD 12 million in receivables in the first week of October.
  • The net debt to EBITDA ratio remains healthy and is on a declining trend at 1.82x, the lowest in the past five years, as we have completed our growth Capex cycle and continue to de-leverage.

 

Dian Andyasuri, Director of Delta Dunia Group, expressed confidence with the results. “We are proud to see the consistently strong performance of Delta Dunia Group, even in the face of challenges. Our diversification strategy has increased our revenue from metallurgical coal to 19% and reduced our reliance on thermal coal by 81% as of September 2023. We are on track to ensure that thermal coal contributes less than 50% of our revenues by 2028. This strategic shift underscores our commitment to sustainability and long-term success.”

Delta Dunia has completed the purchase of 1,285 million shares through the buyback program, which represents 14.9% of the Company’s shares outstanding (as of August 4, 2023). BUMA, Delta Dunia Group’s subsidiary, has bought back USD 14.4 million of Senior Notes, including related unamortized transaction cost, as of September 30, 2023.

“Delta Dunia Group’s performance during the nine-month 2023 period exemplifies our unwavering commitment to sustainable growth, financial strength, and environmental stewardship. We remain focused on delivering value to our stakeholders and leading industry innovation through our ongoing business development and diversification efforts,” concluded Dian.

 

####

 

About PT Delta Dunia Makmur Tbk.
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communication
South Quarter Tower A, Penthouse Floor Unit A-I
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430 Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group Delivers Significant First Half Results and Progress on ESG Initiatives

02 Oct 2023

Jakarta, September 29, 2023 – PT Delta Dunia Makmur Tbk (Delta Dunia Group), the parent company of PT Bukit Makmur Mandiri Utama (BUMA), BUMA Australia Pty Ltd (BUMA Australia), PT Bukit Teknologi Digital (B-TECH), and PT BISA Ruang Nuswantara (BIRU), reports robust volume and EBITDA growth, alongside achieving its lowest Net Debt-to-EBITDA ratio during the first half of 2023 (1H 2023).

Key highlights include:

  • Total revenues surged to USD 0.86 billion, a substantial 19% year-on-year (YoY) growth.
  • Strong operational performance demonstrated by producing 286 million bank cubic meters (bcm), a 10% YoY increase in overburden volume (OB), and 42 million metric tons (MT) of coal, a 2% YoY increase in coal production.
  • EBITDA climbed to USD 175 million, a 7% YoY increase and underlining the Group’s operational strength.
  • Despite industry challenges, the Group maintained resilient margins, with a slight 3% YoY decline primarily attributed to inflationary pressures in Indonesian operations. In contrast, Australia successfully sustained its margins despite increased costs from new contracts.
  • Net profit decreased modestly to USD 5 million, a 13% YoY decline, primarily driven by increased financing costs prompted by the rise in the London Inter-Bank Offered Rate (LIBOR).
  • Capital expenditure (Capex) spending at USD 44 million, a 47% reduction YoY, a result of the successful completion of project ramp-up in Indonesia.
  • Operational Cash Flow (OCF) surged to USD 143 million due to increased EBITDA, resulting in positive Free Cash Flow (FCF) at USD 105 million.
  • The cash balance stood at USD 218 million by the end of 1H 2023.
  • Strong financial health with a Net Debt-to-EBITDA ratio of 1.99x, the lowest in the past five years, reflecting prudent and disciplined financial management in a capital-intensive industry.

Additionally, in September 2023, BUMA marked a significant milestone by securing its first-ever syndicated Sharia financing with a total financing facility value of USD 60 million with PT. Bank Muamalat Indonesia Tbk. acting as the Mandated Lead Arranger (MLA), facility agent, and guarantee agent with an amount of USD 50 million in financing.

Dian Andyasuri, Director at Delta Dunia Group, stated, “Despite formidable challenges, we’ve not only weathered the storm but also achieved revenue growth. The results for 1H 2023 exemplify our core business transformation as we diversify our revenue streams. In the first half of this year, we achieved a significant shift in our revenue composition, with Metallurgical Coal and Infrastructure contributing 18%, marking a significant step towards reducing the proportion of revenue derived from thermal coal production, which now stands at 82%. This progress builds upon our Group’s FY2022 results when metallurgical coal revenue was at 13%.”

During 1H 2023, Delta Dunia Group made remarkable progress in its Environmental, Social, and Governance (ESG) initiatives. It secured an outstanding ranking as the second-highest performer in the global coal sub-industry and ranked among the top 15% in the global oil and gas industry, according to Sustainalytics ESG Risk Rating. The Group substantially improved its ESG Risk Rating from 42.4 in 2022 to 32.7 in July 2023, marking a significant 10-point (25%) increase. As a testament to its commitment to ESG, the Group inaugurated its social innovative subsidiary, PT BISA Ruang Nuswantara (BIRU), in September. Additionally, BUMA Australia actively advanced its mining rehabilitation and closure services, working on four operational sites.

Dian highlighted, “In Sustainalytics’ assessment, Delta Dunia Group excelled in several key areas, encompassing carbon-related products and services, carbon emissions management within our operations, corporate governance practices, community engagement, and occupational health and safety measures, as well as emissions, effluents, and waste handling. Our determined efforts to mitigate carbon emissions have effectively shifted our classification from high-risk to moderate in carbon management. We are diligently advancing our rehabilitation and closure initiatives in our Australian operations, with over two decades of successful rehabilitation and environmental project outcomes. With the inauguration of BIRU, our objective is to bolster Indonesia’s sustainable development further. This entails enhancing local workforce skills for global competitiveness through industry-tailored education and supporting social entrepreneurship, all while upholding our unwavering commitment to environmental preservation.”

Simultaneously, Delta Dunia Group continued its share buyback program and acquired 1,285 million shares purchased by August 4, 2023, constituting 14.9% of the Company’s outstanding shares.

“Delta Dunia Group’s performance in the first half underscores our commitment to sustainable growth, financial strength, and dedication to environmental responsibility. The Group maintains its unwavering focus on delivering value to its stakeholders while spearheading positive change within the industry as we continuously evolve and diversify our business,” Dian concluded.

####

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):
Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.

For further information, please contact:
PT Delta Dunia Makmur Tbk.
Corporate Communication
South Quarter Tower A, Penthouse Floor Unit A-I
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430 Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

BUMA Secures Its First Syndicated Sharia Financing Facility Worth USD 60 Million

15 Sep 2023

Jakarta, 13 September 2023 – PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of PT Delta Dunia Makmur Tbk. (Delta Dunia Group) announced its first-ever syndicated Sharia financing in the history of the company with a total financing facility value of USD 60 million, equivalent to IDR 920 billion. In this financing facility, PT Bank Muamalat Indonesia Tbk. is participating with an amount of USD 50 million and simultaneously serving as the Mandated Lead Arranger (MLA), facility agent, and guarantee agent. This financing will run for a duration of five years until 2028.

The signing of the cooperation agreement was carried out by Nanang Rizal Achyar, Director of BUMA and Irvan Y. Noor, SEVP Enterprise Banking of Bank Muamalat, witnessed by Indra Falatehan, President Director of Bank Muamalat, Dian Andyasuri, Director of Delta Dunia Group and Iwan Fuad Salim, Group Deputy Director Finance & Investor Relations at Delta Dunia Group at South Quarter Tower, West Cilandak, Jakarta.

Nanang Rizal Achyar, President Director of BUMA, appreciates the trust given by Bank Muamalat. “We are proud and grateful for the financing support from Bank Muamalat, which is one of the leaders of sharia banking in Indonesia. This new funding with competitive pricing is evidence of BUMA’s credibility as a leading coal mining contractor company in Indonesia. We will use this funding to support our corporate actions and bolster BUMA’s operational activities. We hope that this collaboration can also lead to broader cooperation.”

Irvan Y. Noor, SEVP Enterprise Banking of Bank Muamalat, said that they welcomed the synergy with Delta Dunia Group through one of its subsidiaries, BUMA. This step is part of the commitment of the first purely sharia bank in Indonesia to contribute to sharia syndicated financing, especially in US dollar denominations. Apart from that, this collaboration can also be an entry point for Bank Muamalat to provide services to BUMA employees, including multi-purpose financing.

“This participation undoubtedly further strengthens Bank Muamalat’s portfolio in the corporate financing segment and demonstrates our active commitment to supporting national companies, particularly in the energy sector. Furthermore, we are optimistic that this contribution will enhance market confidence in Bank Muamalat, which is currently in the process of listing on the Indonesian Stock Exchange,” said Irvan.

Iwan Fuad Salim, Group Deputy Director Finance & Investor Relations at Delta Dunia Group, expresses optimism regarding the corporate actions of Bank Muamalat and BUMA. “As a group of companies committed to long-term growth, one of our strategies is to continuously enhance capital to support the company’s strategic initiatives across all our operational areas. With the company’s ongoing growth, we are confident in our ability to support the government’s economic growth agenda while also making a positive impact on society and the environment at large, aligning with the company’s environmental, social, and governance (ESG) commitments,” he stated.

As information, BUMA is one of the leading coal mining contractors in Indonesia that has successfully implemented a diversification strategy. This diversification includes metallurgical coal mining activities, especially through expansion into Australia by acquiring BUMA Australia in December 2021. In Q1 2023, Delta Dunia Group’s metallurgical coal and infrastructure businesses contributed 15% of group revenue. Supported by operational success in Indonesia and Australia, the diversification strategy and operational performance of the company have successfully increased Q1 revenue to USD 409 million, equivalent to IDR 6.13 trillion, representing a 23% increase compared to the previous year.

“This is a significant step for us. We hope that our collaboration with Bank Muamalat will bring positive and sustainable impacts for both parties in the future,” concluded Nanang.

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About PT Delta Dunia Makmur Tbk.
PT Delta Dunia Makmur Tbk. was founded in 1990, and through its principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading coal mining services contractor in Indonesia and Australia, providing mining services to some of the largest coal producers in both countries. PT Delta Dunia Makmur Tbk. is listed on the board of the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

About PT Bank Muamalat Indonesia Tbk
PT Bank Muamalat Indonesia Tbk is a pioneer of sharia banking in Indonesia, founded on November 1 1991 which was initiated by the MUI, ICMI, and several Muslim entrepreneurs who later received support from the Indonesian Government.

Since operating on May 1 1992, the company has continued to innovate by producing superior programs and services. The Bank Muamalat Shar-E Gold Debit Card is the first sharia bank chip card in Indonesia that can be used for fee-free transactions at millions of merchants throughout the world. Bank Muamalat also launched the #AyoHijrah campaign which invites people to live a blessed life by using financial services that comply with sharia.

As of 15 and 16 November 2021, the Hajj Financial Management Agency (BPKH) officially became the Controlling Shareholder (PSP) of Bank Muamalat after receiving a share grant from the Islamic Development Bank (IsDB) and SEDCO Group. Thus, BPKH’s total share ownership in Bank Muamalat becomes 82.66%. Apart from BPKH, Bank Muamalat shares are also owned by IsDB amounting to 2.04% and other shareholders with a portion of 15.3%.

 

For further information, please contact:

PT Delta Dunia Makmur Tbk.
Corporate Communication
South Quarter Tower A, Penthouse Floor Unit A-I
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430 Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com
PT Bank Muamalat Indonesia Tbk
Corporate Affairs
Muamalat Tower
Jl. Prof Dr Satrio Kav 18, Jakarta 12940
Email: corporate.affairs@bankmuamalat.co.id
Website: www.bankmuamalat.co.id
SalaMuamalat 1500016

BIRU Holds Edu Seminar to Encourage Multisectoral Collaboration in Increasing Globally Competitive Human Resources Capacity

07 Sep 2023

Balikpapan, 6 September 2023 – PT BISA Ruang Nuswantara (BIRU), a subsidiary of PT Delta Dunia Makmur Tbk. (Delta Dunia Group), today held an Education Seminar themed “Learning for a Sustainable Future” and “BISA Ruang Vokasi (BRV) Learning Experience” exhibition at the Novotel Hotel, Balikpapan. This activity is held in hybrid and attended by representatives of the regional government, mining and non-mining industry players, as well as educational institutions and students. This activity aims to encourage multisectoral collaboration in improving the human resources’ (HR)  skills and character development to be globally competitive and ready to enter the industrial world, especially the mining industry.

Dian Andyasuri, Commissioner of BIRU said, “BIRU is a subsidiary of Delta Dunia Group, which focuses on vocational education and waste recycling management. BIRU’s presence as an innovative social enterprise is a tangible manifestation of the Company’s long-term environmental, social, and governance (ESG) commitment. Understanding the importance of a skilled and ready-to-work workforce in the industry, we strive to continuously encourage multisectoral collaboration in improving aspects of the character, knowledge, and skills of vocational students to meet industry needs. Through today’s activity, we hope to encourage multisectoral synergy, especially in the education and industrial sectors, in providing a positive impact on society and increasing the skilled and qualified workforce in the country.”

The economic growth of East Kalimantan Province in the second quarter of 2023 reached 6.84%, or increased significantly from the same period in the previous year of 3.62%.[1] The extractive sector, which becomes an important pillar of the East Kalimantan economy, contributes up to around 40,69% to the overall Gross Regional Domestic Product (GRDP). As one of the cities in East Kalimantan, Balikpapan is also one of the cities that relies on mining and industry. This significant economic increase drives a higher need for a skilled workforce in the mining and energy sectors.

Atok Aryanto, Educational Practitioner and Director of Kubik Leadership, as one of the spokespersons in the Educational Seminar, said, “One of the keys to increasing workforce absorption in the industry is multisectoral collaboration starting from the education ecosystem players, industry players, and students. Good collaboration between stakeholders is expected to create an effective skills-based learning process, in accordance with the industry needs, and able to provide broad benefits to society and national economic growth.”

The other spokesperson, Indah Shafira Zata Dini, Education Consultant, said, “Training and learning through workplace duplication plays an important role in preparing skilled and competitive workforce. Duplication of the workplace environment is not only able to create adaptive human resources but also able to meet the industry qualifications and even contribute in creating solutions for related industries.”

Meanwhile, Nanang Rizal Achyar, Deputy President Director of PT Bukit Makmur Mandiri Utama (BUMA), which is also a subsidiary of the Delta Dunia Group, said, “BIRU, through BISA Ruang Vokasi (BRV), collaborates with BUMA and a number of vocational schools and industrial players to overcome the gap between industrial needs of workforce and the workforce competency, as well as open up access to inclusive training through the link and match concept between business and industry and the world of education. We believe that this collaboration will provide broad and long-term benefits for society, as well as encourage economic growth.”

BRV is an industrial competency-based training product that aims at increasing the capacity and skills of vocational school graduates, which is in line with the industry’s needs. In the future, BIRU will present the BRV platform, an industrial competency-based e-learning program that is supported by a virtual reality approach in its learning practices. The platform, which can be accessed online, will provide a more in-depth learning experience while improving digital literacy through various modules and the use of interactive multimedia equipment, such as videos and virtual simulations. BRV graduates will get a national standard certificate (BNSP) that supports them to meet the increasing needs of the industry.

BIRU will continue to promote HR competency improvement programs and expand its reach to other sectors that require a ready-to-work vocational workforce, such as the pilot program that is currently being developed for the tourism and hospitality sectors. In addition, BIRU will also strengthen its learning competencies with English language programs, apprenticeships or practical training, both of which are internationally certified.

“With the roadmap, we are confident that BIRU will be the initiator in the development of Indonesian human resources that are innovative, comprehensive, and excel, as well as globally competitive. Delta Dunia Group’s business expansion steps also increase the opportunities for skilled labor needs in the future, where BIRU helps encourage sustainability practices and complements the Company’s ecosystem in terms of fulfilling quality human resources in the midst of dynamic industrial development. By helping to prepare skilled prospective workers that meet industry needs, we hope to make a positive contribution to the industry and national economic growth,” Dian concluded.

***

About PT Delta Dunia Makmur Tbk.
PT Delta Dunia Makmur Tbk. was founded in 1990, and through its principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading coal mining services contractor in Indonesia and Australia, providing mining services to some of the largest coal producers in both countries. PT Delta Dunia Makmur Tbk. is listed on the board of the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

For further information, please contact:
Kamelia Mohamad
GM Corporate Communications
PT Delta Dunia Makmur Tbk.
South Quarter Tower A, Penthouse Floor Unit A-I
Jl R.A. Kartini Kav. 8, West Cilandak Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group Attains Second-Highest Global Standing in Coal Sub-Industry, a Testament of Its Strong Commitment to ESG

28 Aug 2023

Jakarta, August 28, 2023 – PT Delta Dunia Makmur Tbk (Delta Dunia Group) proudly announces a significant milestone in its ongoing commitment to sustainability. The company has secured an outstanding position as the second-highest performer in the global coal sub-industry, as assessed by Sustainalytics ESG Risk Rating. This noteworthy recognition by the respected environmental, social, and governance (ESG) risk rating agency Morningstar Sustainalytics underscores Delta Dunia’s unwavering commitment to responsible business practices and diverse ESG factors.

In its latest assessment by Sustainalytics, Delta Dunia Group has achieved remarkable progress in its ESG Risk Rating, improving from 42.4 in December 2022 to an impressive 32.7 in July 2023, marking a 10-point (or 25%) increase. This commendable achievement is also reflected in the company’s ESG Risk Management score, which has risen from 47.4 in 2022 to a noteworthy 56.1 in 2023. These milestones clearly demonstrate the company’s focus on ESG, encompassing the formulation of sound policies to their effective execution.

Furthermore, Delta Dunia Group’s approach to carbon emissions mitigation has enabled the transition from a high-risk in carbon management to a medium-risk classification. A pivotal indication of this success is the company’s Carbon Intensity Trend score of 75. This metric underscores Delta Dunia Group’s significant strides in reducing its carbon intensity compared to its historical average over the past three years.

Dian Andyasuri, Director of PT Delta Dunia Makmur Tbk, emphasized, “Sustainalytics’ latest ESG Risk Rating underscores Delta Dunia Group’s comprehensive integration of ESG across all aspects of our operations. This remarkable progress is a testament to our team’s dedicated efforts and the company’s resolute commitment to implementing ESG initiatives. These include adhering to the Global Reporting Initiative’s (GRI) best practices for ESG reporting, Board of Directors’ oversight of sustainable practices, and the implementation of robust policies to curtail greenhouse gas emissions.”

In addition to the Delta Dunia Group, the Sustainalytics’ ESG rating includes 74 other global companies within the coal sub-industry. The new ESG Risk Rating not only places Delta Dunia Group as the second-highest ESG-rated energy company within Sustainalytics’ global coal sector but also positions it within the top 15 percent of the 301 companies in Sustainalytics’ global oil and gas industry.

Dian further underscored that the company’s ISO 45001 certification for occupational health and safety management reflects its earnest commitment to ensure high safety standards in its operations. The company’s noteworthy achievement of zero workplace fatalities over three consecutive years reinforces its dedication to these commitments.

“Our second-place ranking in Sustainalytics’ global coal sector underscores ESG as a core strength, and we are committed to maintaining and enhancing this performance. We also believe that the effective implementation of ESG within our mining operations will support our customers in upholding their own ESG commitments and accomplishments. As we move forward, Delta Dunia Group will persist in seamlessly integrating and embedding ESG principles into our daily operations, as well as our medium and long-term strategies. We will continue to advance our environmental sustainability program, explore opportunities to expedite our range of community-building initiatives to impact more lives, and diligently uphold our governance practices. We hold confidence that our stakeholders, including ESG rating agencies, will continue to acknowledge and appreciate our efforts,” concluded Dian.

****

About PT Delta Dunia Makmur Tbk.
PT Delta Dunia Makmur Tbk. was founded in 1990, and through its principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading coal mining services contractor in Indonesia and Australia, providing mining services to some of the largest coal producers in both countries. PT Delta Dunia Makmur Tbk. is listed on the board of the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

For further information, please contact:
Kamelia Mohamad
GM Corporate Communications
PT Delta Dunia Makmur Tbk.
South Quarter Tower A, Penthouse Floor Unit A-I
Jl R.A. Kartini Kav. 8, West Cilandak Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group’s Annual General Meeting of Shareholders Approves Dividend Distribution, New Directors, and Notes Issuance Plan

09 Jun 2023

Jakarta, June 9, 2023 – PT Delta Dunia Makmur, Tbk (Delta Dunia Group) (IDX: DOID) held its Annual General Meeting of Shareholders (AGMS) for Financial Year 2022 and Extraordinary General Meeting of Shareholders (EGMS) yesterday at Pacific Century Place, Jakarta. The event was attended by members of the Company’s Board of Commissioners and Directors, both in person and online.

There are four main agendas in the AGMS and EGMS, including the presentation of the Financial Report for Fiscal Year 2022, approval of the dividend distribution, changes in the composition of the Company’s Board of Directors and Commissioners, and approval by the Company and PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of Delta Dunia Group, to issue US dollar-denominated Notes as an alternative form of financing.

Ronald Sutardja, President Director of Delta Dunia Group, said, “We would like to express our gratitude to all shareholders for their participation and continuous support, which has provided us with a strong foundation for the positive business performance throughout 2022, recording a significant revenue of USD1.554 billion or approximately IDR23.115 trillion, which is an increase of 71% compared to 2021. The Company also recorded a net profit of USD29 million or approximately IDR431.3 billion.”

Ronald added that during this meeting, the Company is committed to approving the use of a portion of the Company’s 2022 net profit for distributing dividends to shareholders totalling USD7.15 million or approximately IDR106.3 billion. Delta Dunia Group paid an interim dividend of USD5.15 million or approximately IDR76.6 billion to shareholders on December 30, 2022. The remaining USD2 million, or approximately IDR29.7 billion, will be paid as final cash dividends, scheduled to be announced on the Indonesia Stock Exchange and Delta Dunia Group’s websites. Meanwhile, the remaining profit for the year attributable to the parent Company, amounting to USD21.5 million or approximately IDR319 billion, will be used to strengthen the company’s capital.

The meeting also approved changes in the composition of the Company’s management by appointing Dian Sofia Andyasuri and Sorimuda Pulungan as Directors of the Company. The General Meeting also approved the reappointment of several members of the Company’s Board of Commissioners and Board of Directors whose terms of office had expired, resulting in the composition of the Board of Commissioners and the Board of Directors of the Company as follows:

  • Hamid Awaludin as President Commissioner and Independent Commissioner at the same time
  • Nurdin Zainal as Independent Commissioner
  • Peter John Chambers as Independent Commissioner
  • Ashish Gupta as Commissioner
  • Ronald Sutardja as President Director
  • Dian Sofia Andyasuri as Director
  • Sorimuda Pulungan as Director

The AGMS also approved the plan of the Company and/or PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of the Delta Dunia Group, to issue US dollar denominated bonds to obtain alternative financing. These Notes will be offered to overseas investors, with a maximum amount of USD500 million or approximately IDR7.43 trillion. The maximum interest rate of the Notes is 12% per annum. The maturity date of the Notes maximum in 2029.

“Our plan to issue Notes aims to continue strengthening BUMA’s financial position and operations. Such a new financing structure, with more favorable terms and conditions, will provide more flexibility to manage the Company’s liquidity and cash flow, for the development of its business activities,” concluded Ronald.

****

About PT Delta Dunia Makmur Tbk.
Founded in 1990, PT Delta Dunia Makmur Tbk., through its main subsidiary, PT Bukit Makmur Utama (BUMA), is Indonesia’s second-largest coal mining services contractor by production volume, which provides mining services to some of Indonesia’s largest coal producers. PT Delta Dunia Makmur Tbk. is listed on the board of the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

For more information, please contact:
Kamelia Mohamad
GM Corporate Communications
PT Delta Dunia Makmur Tbk.
South Quarter Tower A, Penthouse Floor Unit
Jl R.A. Kartini Kav. 8, West Cilandak Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group Posted a Revenue of IDR6.13 trillion in Q1 2023, Growing 23% from the Same Period Last Year

05 Jun 2023

  • Delta Dunia Group’s revenue in Q1 2023 was recorded at USD409 million or the equivalent of IDR6.13 trillion, which rose 23% from the last year period.
  • Both EBITDA and Operating Profit increased, and Capex is lower Year-on-Year (YoY).
  • Net Debt to EBITDA remains healthy at 2.15x.
  • In the first quarter of 2023, Delta Dunia Group’s Metallurgical coal and Infrastructure business contributed 15% of the group’s revenues.
  • Delta Dunia Group continued its share buyback program by purchasing 1.065 billion shares, or approximately 12.4% of DOID’s total shares (as of May 31).

 

Jakarta, June 2, 2023 PT. Delta Dunia Makmur Tbk (Delta Dunia Group) today announced strong results for the first quarter (Q1) 2023. Delta Dunia Group’s diversification strategy and excellent operational performance resulted in a 23% Year-on-Year (YoY) increase in revenue to USD409 million, or equivalent to IDR6.13 trillion, driven by successful operations in Indonesia and Australia.

Delta Dunia Group’s performance was driven by a 9% increase in overburden volume, from 123.5 million bank cubic meters (bcm) in Q1 2022 to 134.4 million bcm in Q1 2023. Coal production also increased to 21.5 million metric tons, up 18% from 18.3 million metric tons in the first quarter of last year.

The group’s EBITDA increased by 6% YoY. Overall EBITDA margin declined by 3% YoY, mainly due to the 2% margin decrease in Indonesia, primarily due to cost inflation. The group’s cost efficiencies program has successfully offset most of the price inflation, which was significantly higher. The group’s Q1 operating profit was up despite higher depreciation and an increasing LIBOR. Due to large collections during April and May 2023, the group’s receivables levels are back to normal. A significant tax refund was also received, boosting the group’s cash in May 2023. Capex for Q1 2023 was 57% lower YoY at USD22 million due to the completion of project ramp-ups in Indonesia. The increased EBITDA and the decrease in Capex, accompanied by prudent financial management and the implementation of technology in the group’s operations during the Q1 2023 period, strengthened the group’s cash flow to USD14 million in Q1 2023.

Ronald Sutardja, President Director of Delta Dunia Group, said, “We are proud of the strong results of the first quarter of 2023. Our Indonesian and Australian operations continue to perform well. The diversification strategy continues to generate success, as demonstrated by further progress in increasing the share of the Metallurgical coal business and reducing the revenue share from the Thermal coal business. As much as 15% of the revenue booked in Q1 2023 came from Metallurgical coal operations in Australia. We are optimistic that the 25% revenue target from commodity diversification will be achieved by the end of 2023 while supporting consistent positive results throughout 2023.”

Delta Dunia Group continued the track record of winning and extending new contracts, a testament to the trust placed by the group’s world-class customers. In April 2023, BUMA Australia was awarded a new contract by BHP and Mitsubishi Alliance (BMA) for A$ 60 million or Rp 598.7 billion to provide coal mining and waste treatment services at the Saraji mine in central Queensland, Australia. This is the company’s third contract with BHP-Mitsubishi Alliance, one of the world’s largest metallurgical coal producers. The Saraji mine is one of Australia’s largest coal mines in terms of recoverable coal reserves. The contract has a term of 18 months and an option to extend for a further 18 months.

The group’s commitment to continue implementing sustainable operations in all mining activities demonstrates Partners’ trust in Delta Dunia Group. By Q1 2023, Delta Dunia Group has made significant progress in the group’s ESG initiatives, covering a wide area, particularly in managing carbon footprint and societal impact. Delta Dunia Group’s commitment to reducing its carbon footprint and contributing to Net Zero 2050 is demonstrated by replacing fuel with a higher biodiesel content and successfully maintaining a carbon intensity of 0.0016 tCO2e/ton in 2021 and 2022 through its Indonesian operations. BUMA also managed to maintain an energy intensity of 0.036 GJ/ton in 2021 and 2022. Starting this year, BUMA has also started a carbon footprint assessment at all sites in Indonesia. The data collected and assessed in detail will form the baseline of the company’s carbon footprint and will be used to determine the company’s carbon reduction targets. In 2022, around 12% of total waste in BUMA and BUMA Australia were recycled, and BUMA Australia has conducted progressive rehabilitation in an area of 48.6 hectares.

Another subsidiary of Delta Dunia Group, namely BISA Ruang Nuswantara (BIRU), which was established to promote positive changes on an immersive scale, including through education BISA Ruang Vokasi, has also made a positive contribution to the group’s ESG initiatives. As of Q1 2023, more than 2,100 students have participated in the BISA Ruang Vokasi program, which aimed to improve the students’ capacity to meet industry requirements. BIRU has also empowered 154 women to become entrepreneurs in their respective regions. In terms of the workforce, the group also recorded 18% of the management position throughout its subsidiaries is held by women, whereas 9% of the total workforce in BUMA Australia’s sites is First Nation members.

“All our efforts are a concrete manifestation of the group’s commitment to sustainability. By the end of 2023, we are confident we can reduce the contribution of our Thermal coal business to 75% and to further meet the lower-than-50 % target by 2028. To realize this commitment, we continue seeking opportunities in future-facing commodities (FFCs), such as metallurgical coal, copper, nickel, and lithium. These efforts align with our commitment to Environmental, Social, and Governance (ESG) responsibility. ESG has been an integral part of our business since the beginning,” Ronald concluded.

###

About PT Delta Dunia Makmur Tbk.
PT Delta Dunia Makmur Tbk. was established in 1990 and, through its main subsidiary, PT Bukit Makmur Utama (BUMA), is a leading coal mining services contractor in Indonesia and Australia, providing mining services for some of the largest coal producers in both countries. PT Delta Dunia Makmur Tbk. is listed on the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

For further information, please contact
Kamelia Mohamad
GM Corporate Communications
PT Delta Dunia Makmur Tbk.
South Quarter Tower A, Penthouse Floor Unit A-I
Jl R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430 Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Group, through BIRU, Supports the Government in Enhancing Vocational High School Students’ Skills through Industry-Based Training and Entrepreneurship Programs

25 May 2023

  • Delta Dunia Group, through its subsidiary PT. Bisa Ruang Nuswantara (BIRU), which operates in social education and environment, is committed to developing skills for 150 students in 5 Vocational High Schools (SMK) in Central Java.
  • BIRU has collaborated with 23 SMKs across Indonesia and has provided training programs for 2,113 students through the BISA Ruang Vokasi product.
  • BIRU targets 44,000 students, 2,500 scholarship awardees, and 2,000 participants in teacher competency development by 2027.

Surakarta, May 25, 2023 – PT. Delta Dunia Makmur Tbk., (Delta Dunia Group), through its subsidiary, PT. BISA Ruang Nuswantara (BIRU) today inaugurated a training and entrepreneurship program in collaboration with five Vocational High Schools (SMK) in Central Java witnessed by the Surakarta Regional Government. Through the BISA Ruang Vokasi (BRV) product, which focuses on work practices, and the Karya BISA (KRB) product, which focuses on entrepreneurship, BIRU is committed to long-term efforts to improve the academic knowledge, skills, and character of SMK students needed by the mining industry and the business world in particular, as well as the development of Indonesia’s future generations in general. In order to strengthen BIRU’s presence in Central Java, BIRU cooperates with five SMKs, namely SMKN 1 Klego (Boyolali), Christian SMK Pedan (Klaten), SMK Pancasila (Solo), SMK Warga (Solo), and SMK Tunas Harapan Pati (Pati). In the first batch of both BRV and KRB products partnering with the 5 SMKs, BIRU will train 150 SMK students for one year.

In his remarks at the signing ceremony, Drs. Teguh Prakosa, Vice Mayor of Surakarta, said, “Employing SMK graduates means not only creating income for SMK graduates, but also helping the local economy. This role makes SMK a driving sector for economic growth. On the other hand, SMK education is an investment in improving the quality of our human resources, which requires SMK’s ability to produce high-quality graduates who are ready for the workforce. I welcome the launch of this industry-based learning platform and have high hopes for its potential positive impact on the wider community. Businesses and industries must work together by providing SMKs with appropriate facilities and infrastructure. My gratitude goes to BIRU for making a tangible contribution, especially through its product ‘BISA Ruang Vokasi,’ a platform for development and industry-based training.”

Dian Andyasuri, Commissioner of BIRU, said, “BIRU, founded by Delta Dunia Group in 2023, has become an innovative social subsidiary focused on vocational education, waste management, and recycling. The establishment of BIRU is Delta Dunia Group’s long-term commitment to environment, social, and governance (ESG) initiatives, inseparable from the company’s operations. BIRU has two flagship products, namely BISA Ruang Vokasi (BRV) and Karya BISA (KRB), both of which focus on developing industry-based training and entrepreneurship. We are committed to continuously expanding these products and working with as many vocational schools throughout Indonesia as possible. Naturally, we will continue to work in synergy with various relevant government agencies and local industries from various sectors to achieve these goals.”

BRV is an industry-based skills training product aimed at improving the capacity and skills of SMK graduates to meet the needs of the industry. KRB promotes collaboration in the production of industrial tools, such as the Alugoro hammer and the Pasopati controller, according to standards. Proceeds from the sale of KRB’s industrial products subsidize the funding of the BRV program, thus providing broader and more affordable access to learning. The signing of this collaboration with SMKs in Central Java is an extension of the BRV and KRB products, which have been implemented since 2018. BRV has collaborated with 23 SMKs, and KRB has collaborated with 4 SMKs. BIRU aims to cover 44,000 students, 2,500 scholarship recipients, and 2,000 participants in teacher capacity building by 2027.

Kristiyanto Widiyawan, Director of BIRU, said, “Both of our products are representative of BIRU’s contribution to meeting the demand for skilled workers ready to be absorbed by the industry and to educating students to become entrepreneurs. BIRU is a solution that optimizes the link and matches between education and industry. Currently, BIRU has collaborated with PT Bukit Makmur Mandiri Utama, Darma Bakti Berau Foundation (PT Berau Coal), Ithaca, Universitas Sebelas Maret (UNS), as well as small and medium enterprises in the industry. Optimal synergy within this ecosystem will open wider access for vocational students.”

In the future, BIRU will present BRV in an online format called the BRV Platform. The BRV Platform is an e-learning program based on industry competency learning, enhanced by the virtual reality approach in its hands-on learning. This platform provides a deeper learning experience and enhances digital literacy by presenting different modules and using interactive multimedia tools such as videos and virtual simulations. BRV graduates will receive a National Standard Certificate (BNSP), which will support the alignment of graduates with the increasingly demanding needs of the industry.

Delta Dunia Group’s expansion into mining infrastructure, mining technology, and mine rehabilitation also contributes to the future demand for skilled workers. BIRU complements the Delta Dunia Group’s ecosystem by providing the human resources needed in the midst of dynamic industrial development, promoting sustainable practices.

“ESG has always been an integral part of Delta Dunia Group’s operations. Therefore, our commitment at Delta Dunia Group is to continuously innovate in social and environmental areas that can have a broad positive impact,” concludes Dian.

About PT Delta Dunia Makmur Tbk.
PT Delta Dunia Makmur Tbk. was established in 1990 and, through its main subsidiary, PT Bukit Makmur Utama (BUMA), is a leading coal mining services contractor in Indonesia and Australia, providing mining services for some of the largest coal producers in both countries. PT Delta Dunia Makmur Tbk. is listed on the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

For further information, please contact:
Kamelia Mohamad
General Manager of Corporate Communications
PT Delta Dunia Makmur Tbk.
South Quarter Tower A, Penthouse Floor Unit A-I
Jl R.A. Kartini Kav. 8, Cilandak Barat, Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

BUMA Australia Awarded AUD60 Million Contract by BMA for Saraji Mine

14 Apr 2023

BUMA AUSTRALIA AWARDED AUD60 MILLION CONTRACT BY BMA FOR SARAJI MINE

  • PT Delta Dunia Makmur Tbk’s subsidiary in Australia, BUMA Australia Pty Ltd, has been awarded a new contract from BHP and Mitsubishi Alliance to provide waste and coal mining services at the Saraji mine in central Queensland, Australia.
  • The new contract reinforces BUMA Australia’s position in the Bowen Basin, where it provides pre-strip and coal mining services at three BMA mines.
  • The new contract is expected to support the Company’s continued growth after a record-breaking 2022 performance.

Jakarta, 14 April 2023– PT Delta Dunia Makmur Tbk. (the “Company“) announced that its subsidiary, PT Bukit Makmur Mandiri Utama (“BUMA“), through its Australian subsidiary, BUMA Australia Pty Ltd (“BUMA Australia”), has been awarded a contract by BHP and Mitsubishi Alliance (“BMA“), to provide mining services at the Saraji mine, a metallurgical coal mine located in the Bowen Basin in central Queensland, Australia.

The contract from BMA is valued at AUD60 million for over an 18-month term, with an average annual production expected to be approximately 7 mbcm p.a. BUMA Australia will mine a new pit to be opened at Saraji Mine by BMA, which was first developed in 1974 and is one of Australia’s largest coal mines by recoverable coal reserves. The contract also has an additional 18-month extension option.

Ronald Sutardja, President Director of PT Delta Dunia Makmur Tbk , stated, “We are thrilled to extend our partnership with BMA and excited to have been selected for this new contract to provide mining services at the Saraji mine. As a company, we prioritize our customers’ interests, which we believe is the foundation of our enduring relationships with our reputable partners. Our team’s dedication and expertise in the mining industry, particularly in promoting and adhering to good mining practices, have strengthened our bonds with current clients and opened doors to new opportunities. This contract serves as a testament to Delta Dunia’s unwavering commitment to expanding our portfolio and advancing our metallurgical coal mining activities. We take pride in solidifying our position as an industry leader and eagerly look forward to contributing to our client’s success and driving growth for our business.”

In 2022, the Company successfully diversified its portfolio by expanding into metallurgical coal mining operations, which contributed 13% of its revenue, with the remaining 87% coming from thermal coal mining operations. Moving forward, the Company is committed to further diversifying its business by increasing mine site rehabilitation activities and developing infrastructure projects in Indonesia. Additionally, the Company aims to decrease its reliance on thermal coal to less than 50% of its group revenue by 2028. All of these efforts align with the Company’s dedication to environmental stewardship, social responsibility, and strong governance. The Company remains committed to building a sustainable future guided by strong ESG principles.

This new contract reinforces BUMA Australia’s strong foothold in the Bowen Basin, where it now provides pre-strip and coal mining services at three BMA mines in Queensland: Blackwater, Goonyella Riverside, and Saraji. In addition, BUMA Australia provides coal mining services at Bowen Coking Coal’s Broadmeadow East and Burton Mines.

Colin Gilligan, CEO of BUMA Australia, said, “We are proud of our long-standing relationship with BMA, Australia’s largest producer and supplier of seaborne metallurgical coal, and delighted to have been awarded this new contract for the Saraji mine. This contract award underlines our customers’ continued confidence in our professionalism and significant contribution to their business growth. It also reflects BUMA Australia’s long and extensive track record of safe, efficient, and consistent delivery of mining services to BMA.”

The contract extension is expected to further solidify the foundation that will support the Company’s continued growth following last year’s record performance across its operations:

  • In 2022, the Company achieved its best financial performance to date, recording revenue of USD1,554 billion and a net profit of USD29 million.
  • Overburden removal increased to 547 mbcm in 2022, a 68% year-on-year increase.
  • Coal production also increased to 87 million tons in 2022, a 61% year-on-year increase.
  • The Company is actively managing its debt position, reducing Net Debt to EBITDA from 3x in 2021 to 2x in 2022, with around 60% of its debt due in 2026 or later.

About PT Delta Dunia Makmur Tbk.
PT Delta Dunia Makmur Tbk. was established in 1990 and through its primary subsidiary, PT Bukit Makmur Utama (BUMA), is the second largest coal mining contractors in Indonesia, based on production volumes, providing service to some of the largest coal producers in Indonesia. PT Delta Dunia Makmur Tbk. is listed on the Main Board of the Indonesian Stock Exchange (IDX ticker: DOID). DOID is headquartered in Jakarta, Indonesia.

About BUMA Australia
BUMA Australia was established in 2021 to acquire the Open Cut Mining business of Downer (which has been in continuous operation since 1922). This acquisition included the transition of people, mining services contracts, assets, systems and IP from a business which successfully provided mining services in diverse locations and across many commodities. With a strong focus on delivering optimal outcomes for clients and a strong commitment to safety, innovation, and technology, BUMA Australia is one of Australia’s leading mining contractors.

For further information, please contact:
Kamelia Mohamad
GM Corporate Communications

PT Delta Dunia Makmur Tbk.
South Quarter Tower A, Penthouse Floor Unit
Jl. R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

PT Delta Dunia Makmur Tbk. Reaffirms Its ESG Commitment in Collaboration with TORAJAMELO

30 Mar 2023

Jakarta, 30 March 2023 – As an effort to drive business growth in the environmental and social sector, PT BISA Ruang Nuswantara (BIRU), a subsidiary of PT Delta Dunia Makmur Tbk (Delta Dunia) focusing on social aspects by promoting education, vocational training, waste management, and recycling, signed a collaboration with TORAJAMELO today, a business line providing various lifestyle needs with B Corp certification that prioritizes environmental sustainability and supports the empowerment of indigenous peoples, especially women, while also being the initiator of AHANA. Through this collaboration, BIRU sets to make investments with a positive impact by committing to provide funds in the form of convertible debt worth IDR 7.5 billion, which later will be used for business expansion, thus generating social impact and increasing AHANA’s operational costs.

AHANA comes from Sanskrit which translates into “light that never goes out.” AHANA is a platform providing curated local brands as well as promoting environmental sustainability by means of TORAJAMELO. Throughout its journey, TORAJAMELO has collaborated with several companies to create quality local souvenirs that put forward a positive impact on the environment. AHANA is expected to expand its collaboration with like-minded parties towards developing quality traditional products and supporting the principles of environmental sustainability created by Indonesian women entrepreneurs to gain wider market access. AHANA also plans to launch re:mello, an initiative to assist companies in advancing their circular agendas.

Departing from a common vision to contribute to society and local communities while positively impacting the environment or Environmental, Social, and Governance (ESG) initiatives, the President Director of PT Delta Dunia Makmur Tbk, Ronald Sutardja expressed his enthusiasm for the collaboration between BIRU and TORAJAMELO. “Our commitment to ESG principles has become an integral part of the company’s values since it was founded. We will also ensure that our subsidiaries will carry out this commitment, especially BIRU, which focuses on environmental and social entrepreneurship. Our support for TORAJAMELO embodies our commitment to ESG acceleration, in terms of environmental sustainability and social impact, including supporting women’s empowerment in Indonesia, specifically in areas where development and access to markets are still deemed limited. We hope that the assistance we provide will not only help to advocate for women entrepreneurs’ welfare but also support environmental sustainability. By doing so, we can increasingly make positive contributions to the local communities.”

Delta Dunia has previously assisted a women empowerment program through Wifepreneur, a program fostered by its subsidiary, PT Bukit Makmur Mandiri Utama (BUMA). The Wifepreneur program provides BUMA’s employees’ wives and female employees with the opportunity to develop the necessary skills to become competitive entrepreneurs. As of 2022, 157 women have participated in the program and produced 126 brands, including food and beverage products, fashion, services, and souvenirs.

Furthermore, Delta Dunia has launched its community-based business empowerment initiatives through BUMA to cultivate sustainable economic growth for women. This initiative has resulted in several brands, such as Eco Sae Migunani (recycling business), Putri Maluang Batik (batik artisans), and Inaran Village Women’s Association, which is committed to supporting women entrepreneurs in Inaran Village.

The collaboration with TORAJAMELO will also help create a positive impact on BUMA’s female employees, and the employees’ wives who become members of BUMA’s Wifepreneur program, in which selected participants who were appointed by TORAJAMELO will receive entrepreneurial development training to improve their business competitiveness.

Dinny Jusuf, Director of TORAJAMELO, expressed her appreciation for this partnership. “We highly appreciate this partnership. AHANA’s presence is expected to provide wider market access for women entrepreneurs while advancing the community of women entrepreneurs to create environmentally friendly products with high social value so that they can have a wider impact on craftsmen, as well as female artisans. On the other hand, AHANA’s presence has certainly helped BIRU and Delta Dunia to make positive impact investments to accelerate the environmental sustainability aspect in ESG while increasing positive contributions to the surrounding community.”

“We hope that the collaboration between Delta Dunia through BIRU and TORAJAMELO can accelerate the scale of positive impact investment while supporting the Indonesian government’s efforts to encourage circular economic growth and increase the empowerment of local women in Indonesia. By increasing the competitiveness values of products made by Indonesian female entrepreneurs, Indonesians will grow to love products with heavy cultural value and helping it to achieve international recognition so that it could introduce Indonesia’s cultural heritage to a wide audience, including the global market,” Ronald concluded.

About PT Delta Dunia Makmur Tbk.
Founded in 1990, PT Delta Dunia Makmur Tbk., through its main subsidiary, PT Bukit Makmur Utama (BUMA), is Indonesia’s second-largest coal mining services contractor by production volume, which provides mining services to some of Indonesia’s largest coal producers. PT Delta Dunia Makmur Tbk. is listed on the board of the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

About TORAJAMELO
TORAJAMELO is an award-winning, B Corp-certified slow-living impact business based in Jakarta, Indonesia. TORAJAMELO works with traditional weaver communities and connects them to the market through a range of products including apparel, accessories, souvenirs, and homeware.

Partnering with approximately 1,200 weavers from four communities in South and West Sulawesi, and six communities in East Nusa Tenggara, TORAJAMELO has an offline presence in Jakarta, Bali, Singapore, and Paris and plans to expand the ethical impact of slow lifestyle to other parts of the world.

For further information, please contact:
Kamelia Mohamad
GM Corporate Communications

PT Delta Dunia Makmur Tbk.
South Quarter Tower A, Penthouse Floor Unit
Jl. R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Delta Dunia Makmur Records Significant Business Growth in 2022 with Total Revenue of USD 1.554 Billion, an Increase of 71% Compared to the Previous Year

15 Mar 2023

PT Delta Dunia Makmur Tbk recorded a positive performance in 2022 due to its successful diversification strategy and rising production and prices for global coal commodities.

Jakarta, 15 March 2023 – PT. Delta Dunia Makmur Tbk. managed to record a positive financial performance throughout 2022, recording revenues of up to USD 1.554 billion, or around IDR 24 trillion, an increase of 71% compared to the previous year. The company also recorded a net profit of USD 29 million or approximately IDR 448.1 billion. The company also distributed a total dividend of USD 5.15 million (approximately IDR 79.8 billion), which equals IDR 10.17 per share. Meanwhile, the company’s EBITDA recorded a better position, worth USD 365 million or around IDR 5.6 trillion, an increase of 56% compared to the previous year.

Ronald Sutardja, President Director of PT. Delta Dunia Makmur Tbk. said, “Apart from the increase in production from Indonesia and global coal prices, the company’s positive performance throughout 2022 shows the success of the diversification strategy implemented from Q4 2021 and throughout last year. The diversification includes metallurgical coal mining activities, notably through the acquisition of BUMA Australia in December 2021. Since the acquisition, the value of BUMA Australia’s mining services contracts has increased fourfold from AUD 0.6 billion (IDR 6.1 trillion) to AUD 2.3 billion (IDR 23.6 trillion). Consolidated production volumes have also increased significantly, as evidenced by the removal of 547 million bank cubic meters (BCM) of overburden. Meanwhile, the company’s coal production increased to 87 million tonnes, a 61% increase compared to 2021.”

Throughout 2022, the Company further diversified its business portfolio, with 13% of revenue coming from metallurgical coal mining operations and 87% from thermal coal mining operations. Going forward, the Company is committed to further diversifying its business, increasing mine site rehabilitation activities, and developing infrastructure business in Indonesia. The Company initiated a share buyback program in 2022, resulting in a share buyback of 712 million shares, representing 8.3% of the shares held by the Company as of 31 December 2022. The Company continued the shares buyback into 2023, and as of 14 March 2023, the number of shares bought back increased to 842 million shares, representing 9.8% of the shares held by the Company.

In addition, in November 2022, the company invested US$3 million (IDR 46.5 billion) in Asiamet Resources Limited (ARS) through a private placement, increasing its stake from 15.3% to 24.2%. “The investment will later be used to complete a bankable feasibility study for the Beruang Kanan Main (BKM) copper mining project to finance the BKM development project and the company’s working capital. Going forward, our strategy is to continue to seek opportunities in future-facing commodities (FFCs),” said Ronald.

All these achievements are also based on an unwavering commitment to Environmental, Social, and Governance (ESG). In 2022, the company recorded several achievements related to its ESG commitments, such as maintaining carbon intensity at 0.016 tonnes CO2e/tonne of production for three consecutive years despite increasing production volumes, using B30 fuel for heavy equipment since 2019, and applying the circular economy approach to waste management. In addition, 40% of the total truck fleet operated by BUMA Australia are diesel-electric-powered trucks with lower carbon emissions and fuel consumption.

The company has budgeted IDR 19.5 billion in 2022 for economic empowerment, education, health, and other community-based initiatives. One of the company’s initiatives is the collaboration between its subsidiary, BUMA, and vocational high schools (SMK) to roll out several programs to prepare soon-to-be graduates for the workforce. Through this activity, BUMA recruited 1,464 talented students and prepared them to become operators and mechanics. The collaboration also enabled the company and BUMA to reduce the unemployment rate among SMK graduates while meeting the human resource needs of the mining industry.

“We are committed to continuously taking strategic steps in all our operational areas to support environmental sustainability and sustainable development, by adopting the principles of technology-based operational excellence with a strong ESG focus and diversifying towards a low-carbon sustainable economic portfolio,” concluded Ronald.

About PT Delta Dunia Makmur Tbk.
Founded in 1990, PT Delta Dunia Makmur Tbk., through its main subsidiary, PT Bukit Makmur Utama (BUMA), is Indonesia’s second-largest coal mining services contractor by production volume, which provides mining services to some of Indonesia’s largest coal producers. PT Delta Dunia Makmur Tbk. is listed on the board of the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

For further information, please contact:
Kamelia Mohamad
GM Corporate Communications
PT Delta Dunia Makmur Tbk.

South Quarter Tower A, Penthouse Floor Unit
Jl. R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com

Moody’s Revises BUMA Outlook to Stable, Affirms Ba3 Rating

21 Feb 2023

Jakarta, February 21, 2023 – Global credit rating agency, Moody’s Investors Service (Moody’s), has upgraded PT Bukit Makmur Mandiri Utama (BUMA) outlook to stable from negative and affirmed the company’s rating to Ba3 on its Corporate Family Rating (CFR) and Senior Secured Notes (SSN). BUMA’s upgraded outlook is a testament of the company’s solid progress in adopting effective strategies to achieve growth, diversify operational activities, generate stronger credit metrics, as well as reducing credit concentration risk.

Ronald Sutardja, President Director of PT Delta Dunia Makmur Tbk, BUMA’s parent company, said, “BUMA’s revised outlook is proof that the BUMA family has performed at its best. This achievement is in line with Delta Dunia’s strategy to continue enhancing our core business as a leading mining services developer in Indonesia and Australia and strengthening our operational quality across all stages of mining. With the upgrade of BUMA’s rating by Moody’s, we hope to further strengthen the confidence of investors and all other stakeholders.”

According to Moody’s, BUMA’s governance is one of the key drivers of the stable rating, especially as Moody’s also expects BUMA to maintain a conservative financial policy for investors and shareholders. This strategy has also led Moody’s to change BUMA’s governance profile score from G-4 to G-3 and to revise the company’s environmental, social and governance (ESG) score from CIS-4 to CIS-3.

“Our ESG credit score upgrade is one of our efforts to meet global resource demands in an efficient and sustainable manner. We are committed to continue implementing strategic measures across our operations, both those currently in place, and those we will develop in the future, to realize environmental sustainability and sustainable development. Some of our strategies include adopting the principles of technology-based operational excellence with a strong ESG focus and diversifying towards a resilient sustainable growth portfolio in a low-carbon economy,” Ronald concluded.

Please visit the following link for more information: https://www.moodys.com/research/Moodys-revises-BUMAs-outlook-to-stable-affirms-Ba3-ratings–PR_473935.

About PT Delta Dunia Makmur Tbk.
Established in 1990, PT Delta Dunia Makmur Tbk. through its main subsidiary, PT Bukit Makmur Utama (BUMA), is Indonesia’s second largest coal mining services contractor by production volume, which provides mining services to numerous of Indonesia’s largest coal producers. PT Delta Dunia Makmur Tbk. is listed on the board of the Indonesia Stock Exchange (IDX Code: DOID). DOID is headquartered in Jakarta, Indonesia.

About PT Bukit Makmur Mandiri Utama
Established in 1998, PT Bukit Makmur Mandiri Utama (BUMA) is a mining services contractor in Indonesia and Australia which provides open pit mining services for thermal and metallurgical coal producers. BUMA is 100% owned (minus one share) by PT Delta Dunia Makmur Tbk. .

For further information, please contact:
Kamelia Mohamad
GM Corporate Communications
PT Delta Dunia Makmur Tbk.

South Quarter Tower A, Penthouse Floor Unit
Jl. R.A. Kartini Kav. 8, Cilandak Barat Jakarta 12430
Phone: +6221 3043 2080
Email: communications@deltadunia.com
Website: www.deltadunia.com