Owner of Indonesian coal mining giant Bayan in talks on sale
Indonesia’s Bayan Resources owner PT Bumi Resources is in early talks to sell a controlling stake in the US$28 billion coal miner to a consortium led by rival tycoon Andi Syamsuddin Arsyad, known as Haji Isam.
Source: The Business Times Singapore · August 26, 2026 at 1:01 PM · AI-assisted report
Single-sourceKUALA LUMPUR, 26 AUGUST 2026 —
Indonesian Coal Giant Bayan Resources in Sale Talks Worth Up to $28 Billion
Market Impact
KUALA LUMPUR — The owner of Indonesia’s PT Bayan Resources, billionaire Low Tuck Kwong, is in advanced negotiations to sell a majority stake in the coal miner to a consortium led by rival tycoon Andi Syamsuddin Arsyad, known as Haji Isam, in one of Indonesia’s largest coal deals on record.
Low, who holds a 40% stake in Bayan, along with a further 22% held by his daughter, is discussing the potential sale with the consortium, according to people familiar with the matter. Other unnamed parties have also expressed interest, though discussions remain confidential and no final agreement has been reached. The valuation is expected to be at a discount to current market prices due to Bayan’s limited free float, the sources added.
In a market filing earlier this month, Bayan Resources stated it was “not aware of any plans to take over and/or acquire” shares, though controlling shareholders had indicated they might explore opportunities to optimise their investment. A company spokesperson reiterated this position when contacted on August 26. Haji Isam’s PT Jhonlin Group did not respond to requests for comment.
The potential deal comes amid regulatory pressure on Indonesia’s coal sector, the world’s top thermal coal exporter. Under President Prabowo Subianto, miners have faced production quota cuts to support prices, while others have incurred heavy fines for forestry permit violations. Tycoons, including Low and Haji Isam, have been targeted in Prabowo’s fundraising efforts, including mandatory purchases of “patriot bonds” at below-market rates from Danantara, Indonesia’s new sovereign wealth fund.
Many have also faced heightened tax audits and land confiscations, particularly in palm oil plantations.
Bayan’s shares rebounded following Bloomberg’s report, rising nearly 3% in late morning trading, while the Jakarta Composite Index remained flat. If finalised, the acquisition would expand Haji Isam’s coal portfolio, positioning him among Indonesia’s largest coal magnates. His conglomerate already operates major coal mining operations and has seen its fortunes rise since Prabowo took office in 2024, securing government projects such as a large-scale food estate in Papua.
For Low Tuck Kwong, 78, the potential sale would mark the end of a decades-long tenure leading Bayan Resources. The Singapore-born tycoon entered Indonesia’s coal industry in the 1990s, acquiring a concession in Kalimantan, the Indonesian portion of Borneo. Under his leadership, Bayan grew into one of the country’s most profitable coal miners, with production capacity exceeding 50 million tons annually.
Unlike peers such as Adaro Group and PT Indika Energy, which diversified into gold and aluminum, Low remained committed to coal.
The outcome of the talks remains uncertain, with no guarantees of a completed transaction. Industry analysts will closely monitor developments, given the deal’s potential to reshape Indonesia’s coal landscape and its implications for regional energy markets.
Related: PT Bayan Resources