(July 7, 2025)--PEFINDO has affirmed its idA- ratings to PT MNC Energy Investments Tbk (IATA) and its Shelf-Registered Bond I, as well as its idA-(sy) rating to IATA’s Shelf-Registered Sukuk Wakalah I. Outlook for corporate rating is stable. The rating reflects IATA’s sizeable mining reserves and resources, low-cost position, and synergy within the Group. The rating is constrained by the Company’s moderate financial profile, concentrated business profile, as well as exposure to fluctuating commodity prices and environmental risk.
The rating may be raised if the Company successfully enlarges its business scale, reflected in significantly increased coal production in PT Putra Muba Coal (PMC) and PT Arthaco Prima Energy (APE), which will also further improve IATA’s financial profile.
A more diversified business may also positively impact IATA’s rating, as this may improve its financial flexibility. On the other hand, the rating may be lowered if IATA generates revenue or EBITDA significantly below the targets due to lower coal production or if it incurs debt more than projected, which may aggravate its financial profile. The rating may also be under pressure if the coal price drops significantly, which will negatively impact IATA’s financial figures.
Established under the name of PT Indonesia Transport & Infrastructure, IATA is part of the MNC Group and focuses on the coal mining industry. The Company currently operates two mines located in South Sumatra under PT Putra Muba Coal and PT Indonesia Batu Prima Energy and is in the process of operating PT Arthaco Prima Energy by July 2025. As of March 31, 2025, its shareholders were PT MNC Asia Holding Tbk (24.21%), Karya Pacific Investama (39.39%), and the public (36.40%). (ends)
