PAMA operates mainly in the field of coal extraction and supports local small businesses

‘We don’t just aim to make a profit, we aim to develop the economy as well’
PT. Pamapersada Nusantara

Operating since 1993, PT Pamapersada Nusantara (PAMA) has made its name as Indonesia’s leading mining contractor. “In 1993, contract mining was not a big business and the mining industry had not developed much,” says Sudiarso Prasetio, the firm’s president director. “I knew that in the future the country would require a lot of energy and that we could expand the business as long as we added value for the client.”
Competing for contracts with international firms meant PAMA had to excel in terms of productivity, safety, and responsibility to the environment, aims in which it has succeeded unequivocally. Its corporate philosophy and quality policy, rather aptly expressed by the acronym FAITH, encompasses competence development, health and safety at work, an international standard management system, using technology to increase financial performance, and a high value-added business network. As a result, PAMA now accounts for about 40 per cent of contract mining in the country.

PAMA’s commitment to providing reliable services and a high satisfaction level extends not just to its clients and partners but to financial institutions: “That is why we were able to raise $222 million last year,” says Mr Prasetio. This year PAMA has secured a syndicated loan worth $425 million dollars to repay existing debt and strengthen its working capital, an achievement based on the fact that “we always keep our promises”, in the words of the president director.

Primarily operating in coal extraction, PAMA works in close partnership with many mining firms, providing everything from initial project planning, through infrastructure construction, to reforestation at mine closure. The company owns one of the world’s largest heavy equipment fleets which includes dump trucks, coal haul trailers and excavators; in addition to mining, one of their main services is the removal of overburden, the rock and soil that lies above the coal seam.

SUDIARSO PRASETIO President Director of PT. Pamapersada Nusantara

The firm’s extensive knowledge of local working conditions and legislation, as well as their well-earned reputation for high-quality operational management, flexibility and reliability, has ensured that its existing partners in the mining sector are keen to re-negotiate contracts, while there is no shortage of interest from new partners. Currently, PT Adaro is PAMA’s best established partner, but the firm also works together with PT Arutmin Indonesia, in South Kalimantan; PT Jembayan Muarabara, in East Kalimantan; PT Tanjung Alam Jaya and many others. There are plans to extend the business further and create more international partnerships.

“We are starting to develop a worldwide strategy,” explains the company director. “We are establishing a facility in Balikpapan that will cost about $4 to $5 million, working together with a German company and using coal technology from Germany. The plant will be used to upgrade the calorific value of coal, as about 70 per cent of the Indonesian coal reserve is low calorie. If this is successful, it will boost the economy of the whole country.”

The firm’s interest in boosting the economy extends to the local level. By providing credits to people with no access to more expensive bank loans, PAMA is helping to stimulate economic activity in the areas in which it works. “We don’t just aim to make a profit. We want to develop the economy as well; we now lend to over 5000 people,” says Mr Prasetio. In education, PAMA works at raising school standards in English and mathematics, and in providing teacher training.

The company is engaged in several initiatives to improve efficiency and reduce the impact of mining on the environment. As well as recycling fuel, PAMA works to reduce fuel usage and lengthen engine life. The firm’s technicians have developed a sensor that can reduce fuel use by about 20 per cent. Another scheme re-uses filters as scrap iron. “If we do our job consistently well and we are responsible, we will benefit society, our clients, and the government,” says Mr Prasetio.