Samindo Resources (MYOH) opens business opportunities outside of coal

KONTAN.CO.ID - JAKARTA. It is common knowledge that coal energy sources will be depleted in the future. Slowly, PT Samindo Resources Tbk (MYOH) began to seize opportunities for business diversification outside the coal mine.

MYOH Head of Investor Relations Ahmad Zaki Natsir admitted, it was about two years ago, his side began to study the business potential other than coal. One of them is by going into the power generation business.

He said, lately MYOH began to take part in several tenders for the Solar Power Plant (PLTS) and Steam Power Plant (PLTU) projects. It's just that, he has not been able to explain his development in more detail.

"Actually, this business is not really running. We are still in the stage of participating in the electricity tenders held by the government, "Zaki said when contacted by Kontan, Tuesday (11/19).

Basically, MYOH still sees opportunities in the new and renewable energy (EBT) business in the long run. EBT business potential is considered quite large considering the level of competition is not too tight.

In addition, there is an intensive kind of government given to companies that are willing to enter the EBT business.

Even so, if MYOH becomes working on the EBT business in the near future, Zaki assesses that the expansion has not been able to completely replace the contribution of the coal mining service business that has been run by the company.

For the record, MYOH's largest revenue in the third quarter came from the land removal and coal extraction services business of US $ 140.13 million.

One of the challenges to expanding in the current EBT business is that the capacity that can be generated by environmentally friendly energy-based power plants tends to be lower than fossil energy. On the other hand, investment costs that must be spent are quite large.

Other challenges include aspects of flexibility. For example, PLTS can only maximize its operational activities during the day when the sun is shining. Water discharge which is a source of energy for mini-hydro power plants is also not necessarily consistent throughout the year.

"The renewable energy business as complementary might be possible, but it has not yet reached the substitution stage for fossil energy," he said.

Nevertheless, Zaki rate, the trend of transitioning coal energy to green energy is a necessity, so it still needs to pay attention.

"Maybe in the future, technology to work on the renewable energy business will be more advanced and investment will be cheaper initially," he explained.