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

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.