The founder of Indonesia's PT Bayan Resources is negotiating the sale of a majority stake in the $28 billion coal miner to a consortium led by rival tycoon Haji Isam, in what would rank among the country's largest-ever coal deals.

Billionaire Low Tuck Kwong, who directly owns 40% of Bayan with a further 22% held by his daughter Elaine Low, is in discussions with potential buyers led by Andi Syamsuddin Arsyad — better known as Haji Isam — according to people familiar with the matter.

Other parties have also expressed interest, one source said, asking not to be named as negotiations remain private.

The talks are ongoing, with no guarantee of a final agreement. The price is likely to be set at a discount to current market levels given Bayan's limited public free float.

Reports have suggested Haji Isam is targeting the acquisition of the 62.2% stake held by the Low family for approximately $5.5 billion.

Bayan Resources responded to market rumours earlier this month, stating it was "not aware of any plans to take over and/or acquire" company shares. Corporate secretary Jenny Quantero said in a disclosure to the Indonesia Stock Exchange on August 18 that the controlling shareholder had informed management about potential investment interest.

"As investors, they can consider various opportunities and chances to maximize their investment in the company," Low Tuck Kwong said through the company's disclosure.

The potential deal comes as Indonesia's coal industry faces mounting pressure under President Prabowo Subianto's administration. Miners in the world's largest thermal coal exporter have had production quotas slashed — the 2026 national quota was set at 600 million metric tons, down sharply from 790 million tons in 2025 — in an effort to boost prices. Others have paid steep fines for forestry permit violations.

Tycoon owners have also been pressured into buying so-called "patriot bonds" from Danantara, Indonesia's new sovereign wealth fund, offering below-market interest rates. Many face heightened tax audits, while others have battled confiscation of large swathes of palm oil plantation land.

A successful purchase would propel Haji Isam into the ranks of the country's biggest coal magnates. His Jhonlin Group is already a major coal miner with diversified operations spanning port services, palm oil, rubber processing, and private jet rentals. The entrepreneur's fortunes have risen since Prabowo became president in 2024, with his firm taking on key government projects including a massive food estate in Papua.

For Singapore-born Low, 78, the sale would cap multiple decades at the helm of Bayan Resources. He entered Indonesia's coal business in the 1990s, buying a concession in Kalimantan, and built the company into one of the country's biggest and most profitable miners, capable of producing more than 50 million tons annually. He has consistently doubled down on coal even as rivals like Adaro Group and PT Indika Energy pivoted to gold and aluminium.

A spokesperson for Bayan referred back to the company's August 18 stock exchange disclosure when contacted on Wednesday. PT Jhonlin Group did not respond to requests for comment.