This story appears in the December 31, 2021 issue of Forbes Asia. Subscribe to Forbes Asia
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This story is part of Forbes’ coverage of Indonesia’s Richest 2021. See the full list here.
Indonesia’s mining barons benefited as China saw its coal supplies disrupted by cold weather and a trade spat with Australia, stoking demand for the fuel. Prices spiked to all-time highs, causing the fortunes of Indonesia’s coal producers to soar. “Financial results of coal miners are improving in line with the rising coal price,” says Dessy Lapagu, an analyst at Samuel Sekuritas Indonesia. “That lifted the share price of coal companies.”
Adaro Energy’s revenue rose over 30% in the first nine months to $2.6 billion from a year earlier, while operational Ebitda grew 70% to $1.2 billion. A 38% jump in Adaro’s shares over the last 12 months has boosted the wealth of its key stakeholders. CEO Garibaldi Thohir saw his net worth increase 58% to $2.6 billion, president commissioner Edwin Soeryadjaya more than doubled his to $1.51 billion, vice president commissioner Theodore Rachmat by 78% to $2.84 billion, and board commissioner Arini Subianto by 60% to $975 million. However, the coal-price surge hasn’t derailed Adaro’s plans to diversify into clean energy. “In the next 10 years, I hope renewable energy can account for 50% of the company’s revenue stream,” says Thohir.
Arini Subianto
Harum Energy founder Kiki Barki returns to the list after a fourfold rise in the price of the coal producer’s shares this year lifted his net worth to $1.6 billion. The stock’s recent ascent started in mid-2020 after Harum acquired a 3.2% stake in Australia-listed Nickel Mines, which it has since increased to 6.7%.
While some coal miners have been diversifying in anticipation of diminishing prospects for fossil fuels, Hendra Sinadia, executive director of the Indonesian Coal Mining Association, says it’s too early to write off the commodity. “I expect demand from power generators to remain strong at least in the next four decades considering it’s still the most affordable fuel for electricity,” he says.
Elsewhere, Bayan Resources shares rose over 80% in the last 12 months, doubling the wealth of founder Low Tuck Kwong to $2.55 billion. Bayan’s revenue climbed over 70% in the first nine months to $1.7 billion and Ebitda grew fourfold to $967 million. The company, which exports most of its output, is one of the biggest beneficiaries of high coal prices, notes Fauzan Luthfi Djamal, an analyst at RHB Sekuritas Indonesia.
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However, coal prices have retreated significantly from their peak after Chinese regulators cracked down on speculative bets in thermal coal futures. Australia’s Newcastle coal price, a global benchmark, has dropped 33% from a record $259 per tonne reached on Oct. 5.