Shares of PT Darma Henwa Tbk (DEWA) are projected to have upside potential toward the Rp900 level following the company’s signing of contract extensions for two mining projects owned by PT Arutmin Indonesia, valued at approximately Rp10.5 trillion. During Tuesday’s trading session (Jan 20, 2026), DEWA shares surged more than 6% to an intraday high of Rp805 per share, although the gains faded in the second session, with the stock eventually closing up 1.99% at Rp770 per share.

 

The rally in DEWA shares was driven by positive sentiment surrounding the contract extensions with PT Arutmin Indonesia for the Kintap and Asam Asam mining projects, which were officially signed on January 19, 2026. According to the company’s disclosure, the projects are estimated to be worth around Rp10.5 trillion, with projected overburden removal of 252 million bcm and coal production of approximately 50 million tons.

 

The contracts are structured on a life-of-mine basis, covering the entire operational lifespan of the mines, which are located in Tanah Laut Regency, South Kalimantan. DEWA’s Director and Corporate Secretary, Mukson Arif Rosyidi, explained that under the previous contracts, the Asam Asam project recorded average annual production of 17.3 million bcm of overburden and 3.8 million tons of coal. Meanwhile, the Kintap project previously generated average annual output of 25.3 million bcm of overburden and 3.8 million tons of coal.

 

Mukson stated that the contract extension reflects Arutmin’s confidence in DEWA as a long-term strategic partner. He also emphasized that the life-of-mine agreement provides long-term operational certainty for the company and is expected to have a positive impact on the financial performance and overall condition of the Bakrie Group affiliate.

 

In addition to this catalyst, DEWA shares continue to benefit from an ongoing share buyback program running from November 19, 2025, to February 19, 2026, with a maximum allocation of Rp1.66 trillion, equivalent to 10% of the company’s paid-up capital. However, the actual utilization of funds is expected to be significantly lower, at around Rp950 billion. As of Tuesday (Jan 20), only Rp480 billion had been used, leaving approximately Rp470 billion available for further buybacks.

 

With less than a month remaining before the buyback period ends, DEWA shares are expected to maintain their upward momentum. Several analysts estimate the stock could reach around 820 in the short term and potentially approach the 900 range if buying pressure persists. BCA Sekuritas has assigned a more optimistic target price of Rp1,100 per share, while UOB Kay Hian Sekuritas has set an even higher target of Rp1,500 per share. Data from Stockbit shows that 11 analysts from various brokerage firms currently rate DEWA shares as BUY.

 

Despite the predominantly positive catalysts, challenges remain. DEWA has received an “L” notation from the exchange due to delays in submitting its third-quarter 2025 financial statements. The delay stems from the company’s focus on internal restructuring, including efforts to eliminate accumulated losses from previous years and to reassess impairment of legacy, non-productive assets. As a result of the missed reporting deadline, DEWA faces the potential imposition of a Rp150 million fine and a Third Warning Letter (SP3).