Regulatory delay disrupts Jakarta firm’s coal supply

JAKARTA: Coal mining company PT Bayan Resources has disclosed force majeure affecting coal supply obligations on its three subsidiaries amid delayed government approval of their revised annual production plan (RKAB).

The subsidiaries of the publicly listed company, PT Tiwa Abadi, PT Tanur Jaya and PT Fajar Sakti Prima, declared force majeure last Friday.

“The force majeure is due to the pending approval of the RAKB 2026 for the subsidiaries, despite the application for the revised RKAB approval having been submitted in accordance with the prevailing laws,” read the company’s public disclosure published on Monday.

It noted that this situation had affected Bayan and its subsidiaries in meeting their obligations to customers and caused “a material impact” on business operations, as RKAB approval is necessary for legal coal production activities.

However, Bayan expressed hope that the declaration of force majeure would help minimise the risks and consequences for the company and its subsidiaries.

The disclosure comes amid rumours that tycoon Haji Isam will acquire a 62% majority stake in Bayan.

When the speculation emerged in August, Bayan’s stock, listed under ticker code BYAN, rallied and reached a peak of 17,125 rupiah per share at the close of trading on Aug 18.

Bayan subsequently issued a statement on the same day, saying it was “not aware of any plans” for a takeover or acquisition of its shares.

“However, the company’s controlling shareholders have informed us that, from time to time, as investors, they may consider various opportunities to maximise their investment in the company,” it added. — The Jakarta Post/ANN