PTBA - DME project cancellation

PTBA - DME project cancellation The coal-to-DME downstreaming project led by Bukit Asam (PTBA) is no longer mandatory, as confirmed by the Ministry of Energy and Mineral Resources. The government faces challenges in finding a replacement for Air Products & Chemicals Inc. (APCI), which withdrew in 2023 due to uncompetitive project economics compared to subsidized LPG imports. The USD2.1 bn project remains stalled, with the government now open to exploring other downstream coal products beyond DME. (Source : Bloomberg Technoz) Comment : This cancellation does not change our view, as PTBA's performance remains unaffected without the coal-to-DME downstreaming project. Our call remains BUY with a TP of IDR 3,080.