Harum Energy is also looking into opportunities in the domestic coal-fired power generation industry perhaps by establishing a joint venture with a power plant operator.

The coal mining industry has been heavily affected by sluggish global growth (leading to reduced demand) and a supply glut. Global coal prices have fallen since 2011 and there is few to no indication that this situation will change on the short or middle-long term. Coal production in Indonesia fell 15.4 percent (y/y) to 263 million tons in the January-August 2015 period as Indonesian coal miners cut production. Indonesia’s reference thermal coal price hit another all-time low in September 2015 at USD $58.21 per metric ton (FOB), down 1.6 percent from the August reference rate, and constituting the fifth consecutive month of decline. Recently, the Indonesian Coal Mining Association (APBI) stated that nearly 80 percent of Indonesian coal miners have temporarily ceased coal production as the production cost margin turned negative.

Stock Quote Harum Energy (HRUM)

Stock Performance Harum Energy versus Benchmark Jakarta Composite Index (JKSE):*

* Normalized stock prices, 1 January 2015 = 100

Further Reading:

Coal Update Indonesia: Price, Environment, Health & Batang Plant
Company Profile of Harum Energy
Overview of Indonesia's Coal Mining Sector