Delta Dunia Operational and Financial Strategies
Cash Costs
BUMA's cash cost ex fuel (FY 2021)
Lubricants
3%
Tires
5%
Drilling & blasting.
5%
Rental
6%.
Others
10%
Overhead & office.
12%
Employee
compensation
24%
Spare parts &
maintenance
34%
Delta Dunia
▸ The management team led the business to navigate through the prolonged downturn in 2020, focusing on
optimizing asset utilization, strategically reducing capex, efficient inventory management and prudently
reducing costs
▸ Employee costs have started to gradually normalized as volume recovers
➤ FY 2021 includes upfront costs in order to facilitate recovery and growth efforts, unusually high-rainfall
condition in 2H 2021 causing higher costs, topped with COVID-19 Delta surge that slowed operations down in
July and August. Benefits of those upfront costs will be visible from 2022 onwards, when volume have fully
ramped-up. COVID-19 challenges were well-contained as case numbers went down significantly by September
and operations normalized again.
► Technology driven initiatives continued to be pursued and are expected to reduce costs sustainably going
forward
- STRICTLY CONFIDENTIAL -
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