Adaro Services is Adaro Energy pillar’s business segment that consists of all companies within the Adaro Group that operate as a mining service provider, with services ranging from exploration, engineering, mining contracting, to marketing and trading. These companies mainly serve Adaro Group’s companies that operate mining operations.


PT Saptaindra Sejati

PT Saptaindra Sejati (SIS) is one of Indonesia’s leading and largest mining contractors with a broad range of services from contract mining services, civil works, and infrastructure development to land logistics. SIS’ main customers are Adaro Indonesia, Balangan Coal Companies, and Maruwai Coal (a subsidiary of PT Adaro Minerals Indonesia Tbk). 

SIS continues to invest in heavy equipment in order to increase its equipment capacity to meet higher customers’ target. Given all of its customers operate within the coal mining industry, SIS’ operational performance is directly correlated with this industry. In 2023, thermal coal demand remained strong and the Adaro Group’s coal mining operations continued to achieve a new historical record. As a result, SIS as the main mining contractor in the Adaro Group also recorded higher production, in particular in term of overburden removal.

Occupational Health and Safety Performance Occupational health and safety are an essential part of mining operations. In 2023, SIS recorded LTIFR and SR of 0.02 and 1.24, respectively, which are better than 0.04 and 3.47 recorded in 2022. SIS’ health and safety performance has received a number of awards, such as: 

  • Zero Accident Awards from the Minister of Manpower (Adaro Indonesia, Balangan Coal Companies, and Maruwai Coal jobsites)
  • Gold rating for HIV-AIDS Prevention and Control Program at Work from the Minister of Manpower (Adaro Indonesia jobsite)
  • Gold rating for COVID-19 Prevention and Control Program from the Minister of Manpower (Adaro Indonesia and Maruwai Coal jobsites)
  • Zero Accident Awards from the Governor of South Kalimantan (Adaro Indonesia and Balangan Coal Companies jobsites)
  • Zero Accident Awards from the Governor of Central Kalimantan (Maruwai Coal jobsite)


Operational Excellence and Good Mining Practices

In 2023, SIS recorded 223.1 Mbcm overburden removal, or increased 18% y-o-y and 60.9 million tonnes of coal production, or increased 2% y-o-y. SIS’ operational activities in 2023 were supported with more than 2,600 units of heavy equipment, among others 120-tonne to 400-tonne excavators, 100-tonne to 200-tonne dump trucks, and set trailers of 135 tonnes. SIS managed to maintain equipment physical availability of 93%, above the standard operational parameter, and 59% utilization availability.

SIS maintains operational excellence through digitalized fleet management system and various other initiatives such as optimizing production equipment and its supporting facilities, increasing the life of parts and equipment, and achieving significant cost efficiency. Furthermore, SIS also applies good mining practices (GMP) in its operations, which have been recognized by the Ministry of Energy and Mineral Resources with GMP awards for the aspect of Management on Mining Services’ Standardization and Business, where SIS received the Aditama (Gold) rating for Adaro Indonesia jobsite and the Utama (Silver) rating for Maruwai Coal and a third-party jobsite.


Digitalized Fleet Management System

For overburden removal at Adaro Indonesia, SIS has been employing a fleet system managed with a digital platform (digital FMS-fleet management system) for controlling more than 35 excavators and 400 dump trucks real time, that cover a distance of more than 5 km. Digital FMS is a set of IT-based equipment consisting of monitor panel installed on heavy equipment, software and application dashboard operated and supervised by dispatchers from the control room supported with server and the Internet connection. The main feature of this system is automatic assignment (optimizer), which can automatically assign dump trucks’ operators based on the system’s most optimum calculation. 

Digital FMS’ dashboard displays information on units in operations, idle, or breakdown, fleet units’ operability, production data of each unit, (loaders/excavators and trucks), performance (loading time, cycle time to the disposal area, dumping time, trucks’ spotting time), and operator availability, which can be used as inputs for improvement, such as based on the reports on heavy equipment performance, operators, and operational deviation.

The implementation of digital FMS has resulted in operational improvement, such as in the mining area, operators and supervisors’ competencies, and productivity enhancement and efficiency by optimizing utilization rate of heavy equipment, and reduced the number of truck requirement by 15 units since October 2023, as well as reducing excavators’ hanging time (the length of time the excavators are in idle position while waiting for dump trucks’ arrivals for loading overburden). This means, digital FMS has contributed to cost efficiency, one of the key factors to SIS’ sustainability in the long term.


Human Resources

SIS participates in the Adaro Group’s human resources programs in terms of recruitment, training, or succession plan. Not less important is the employee empowerment program through the innovation culture being fostered across all Adaro Group companies, which among others has resulted in an innovation of the operations team that has successfully lowered fuel consumption by reducing the idle time of excavators, increasing dump trucks’ speeds, and improving topsoil spread at the disposal area for improving dump truck traffics. This innovation has reduced fuel ratio from 0.49 liter/bcm/km to 0.44 liter/bcm/km at one of its work areas, even lower than 0.46 liter/ bcm/km initial target of this innovation target. This achievement plays an important role for SIS’ operational excellence by reducing fuel costs and greenhouse gas emissions.

In addition, several SIS’ employees have won two Platinum awards and one Gold award at the 27th National Quality and Productivity Convention participated by 562 teams from 182 Indonesian companies. This event is an innovation convention in the areas of quality and productivity improvement for companies from various sectors.


Sustainability Initiatives

SIS has implemented several initiatives, by using biodiesel fuel, implementing electrification programs mainly for the electric pump in the dewatering system, applying several systems to improve efficiency and reduce emission. SIS will continue to explore opportunities for emission reduction as part of our green initiatives and also to contribute to Indonesia’s ENDC (enhanced nationally determined contribution) target.


PT Adaro Jasabara Indonesia (AJI)

PT Adaro Jasabara Indonesia (AJI) PT Adaro Jasabara Indonesia (AJI) is a multi-skilled services company offering several areas of expertise, including exploration, strategic mine planning, and engineering, by playing an important role to support AEI’s management and subsidiaries with recommendations and advice to maximize the benefits from the resources and reserves, as well as optimizing the development and utilization of supporting facilities.

In addition to reviewing the Adaro Group’s long-term mine plan, in 2023, AJI also performed multiple projects such as Kelanis port rehabilitation and improvement project in Adaro Indonesia and provided supports for the production ramp up and strategic development measures of PT Adaro Minerals Indonesia Tbk., PT Mustika Indah Permai, and Balangan Coal Companies, which included but not limited to additional resource and reserve delineation, road upgrade, port and fuel storage expansion and other engineering support at their respective locations.


Adaro International (Singapore) Pte. Ltd. (AIS) Adaro International (Singapore) Pte. Ltd. is AEI’s subsidiary with main operations as a coal trader and marketing agent from its office in Singapore. By providing agency services, AIS takes a strategic role by giving the Adaro Group the access to the international marketing networks and keeping an eagle eye on the global and regional trends of coal production, supply, demand and pricing.

Apart from serving the Adaro Group as its main client, AIS makes continuous efforts to expand its network in the global coal market, especially within the global metallurgical coal market. Despite declining coal prices in 2023, AIS was still able to utilize its strategic location to support the Adaro Group’s outreach efforts.

Last modified on May 31, 2024, 8:44 pm | 521212