A severe contraction in PT United Tractors Tbk (UNTR) performance heavily dragged down Astra International’s consolidated earnings in the first half of 2026, with net profit from the mining segment plunging 88% year-on-year. Softening global coal prices, coupled with reduced heavy equipment sales volumes, hit the mining contracting business hard. The sharp drop in commodity-related income proved to be the single largest factor weighing on the parent company’s overall financial results. Heavy machinery distribution also suffered as mining operators scaled back capital expenditures.

The dramatic earnings decline in the mining division highlights Astra’s exposure to global commodity cycles despite its diversified corporate structure. Operational costs in contract mining remained elevated, further squeezing profit margins during the six-month period. Stakeholders, business partners, and media representatives requiring official information or corporate statements may access the Contact Us interface on the official corporate platform. Management is actively reviewing cost structures and operational efficiency measures at United Tractors to stem further margin erosion.

Despite the temporary slump in commodity earnings, Astra remains committed to long-term strategic diversification into non-coal minerals such as nickel and gold. Expanding exposure to critical transition metals is expected to reduce future earnings volatility associated with thermal coal markets. While near-term performance in the mining division remains constrained by market prices, the group’s strong balance sheet provides adequate buffer. Astra will continue prioritizing operational discipline and strategic portfolio rebalancing to restore earnings growth.