PT Golden Energy Mines Tbk (GEMS) is exploring potential new export markets such as Malaysia.

"This step is taken to balance the company's market portfolio," wrote management in the Golden Energy 2020 annual report, Wednesday (14/4).

Therefore, the company will focus on market expansion in the first semester. If the market maintains its upward trend until the second semester, it will propose additional production in the Work Plan and Cost Budget (RKAB).

"In addition, we will continue to implement strategies that have proven to be very effective in 2020, namely managing costs in a relevant manner, balancing market portfolios, and securing liquidity," he added.

Apart from exploring new export markets, the company also plans to shift its focus to the domestic market. This can be seen from the contribution of the company's domestic market obligation (DMO), which rose to 35% of total production.

Management is of the view that it carried out these various business strategies in line with the Covid-19 pandemic, which was followed by lockdowns and social restrictions in multiple countries, causing a drop in global demand for coal.

The falling demand for coal caused an oversupply, resulting in a decline in coal prices until the third quarter of 2020. However, prices recovered in the fourth quarter of 2020 and continued to increase until early 2021, supported by demand from outside China and production cuts.

"We believe that the increase in coal prices in the first quarter of 2021 will only be temporary due to winter and increasing demand, but we estimate that this year will be better than 2020 with the Covid-19 vaccination," he said.