Indonesia Investments updated the company profile of ABM Investama in the Indonesian companies section. ABM Investama, listed on the Indonesia Stock Exchange, is an Indonesia-based holding company that is primarily focused on energy-related sectors, covering coal production, mining contractor services, and power solutions. After two years of net losses the company posted net profit of USD $12.89 million in 2016 supported by cost efficiency improvements in all business lines and the surging coal price in the second half of 2016.

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Rubber gloves manufacturers in Indonesia are pessimistic about their business in 2017. This pessimism is caused by the lack of clarity whether - or when - the Indonesian government will lower the gas price for the rubber glove sector. Indonesia's high gas price gives rise to high operational costs for Indonesia's rubber glove producers. Reportedly, a number of local rubber glove factories have ceased production since late-2015.

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Indonesia's fully state-owned energy company Pertamina saw its net profit grow by a whopping 221 percent (y/y) to USD $1.83 billion in the first half of 2016. This remarkable performance is attributed to the company's enhanced operational performance and efficiency in the upstream and downstream segments. Dwi Soetjipto, General Director of Pertamina, that despite the oil and gas industry being plagued by major challenges, Pertamina managed to take its responsibility in terms of the energy supply, being the nation's foremost local energy supplier.

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London-based BP, one of the world's leading oil and gas companies, submitted its final investment development decision to expand the Tangguh liquefied natural gas (LNG) facility (the Train III project) in West Papua, Indonesia. According to a statement from BP, this decision will create 10,000 new jobs, boost the local economy in West Papua and will contribute to meet Indonesia's energy needs. Construction is scheduled to start in the fourth quarter of 2016 and is targeted to be completed by 2020.

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Indonesian independent power producer Cikarang Listrindo raised IDR 2.4 trillion (approx. USD $180.5 million) from an initial public offering (IPO) on the Indonesia Stock Exchange on Tuesday (14/06). The company is the first independent power producer to go public in Indonesia and the 5th firm to be added on the Indonesia Stock Exchange in 2016. Cikarang Listrindo floated 9.7 percent of its enlarged share capital on the bourse. On its trading debut its shares rose 2.6 percent from IDR 1,500 to IDR 1,540 a piece.

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Crude oil prices are rebounding, climbing nearly 90 percent from 13-year lows at the start of 2016. However, compared to two years ago crude prices are still down 50 percent hence corporate earnings in the oil and gas industry remain subdued, while few investors are enticed to engage in exploration. To deal with low oil prices, oil and gas companies need to become more efficient thus pushing down production costs in order to optimize earnings. Lets take a look at Pertamina, Indonesia's state-owned energy company. How much does it cost for Pertamina to produce one barrel of oil?

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The government of Indonesia plans to offer 19 geothermal blocks to investors in 2016 through tenders and direct assignment. Yunus Saifulhak, Chief of Geothermal Power at the Energy Ministry's Directorate General, said eight blocks will be offered through open tenders, while the 11 remaining geothermal power blocks will be given to state-owned enterprises. These 19 blocks are part of a larger package consisting of 27 geothermal blocks with a total combined power capacity of 1,535 megawatt (MW) that is to be offered to private and state-owned investors in the 2016-2017 period.

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As the coal mining industry will not rebound anytime soon, Adaro Energy, the second-largest producer of thermal coal in Indonesia, has to find another strategy to make a profitable business. Income coal sales has weakened but the company's mining services and logistics segments have been growing. Meanwhile, the company has been expanding to the downstream power generation industry. Not coal, but power generation may be the center of a new super-cycle in Indonesia as the government aims to see the construction of 35,000 megawatts (MW) of power plants in the next five years.

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Indonesian President Joko Widodo met Hungarian Prime Minister Viktor Orban in Jakarta on Monday (01/02) to discuss bilateral issues including trade and investment. High on the agenda was the topic of solar power. Reportedly, Hungary plans to invest USD $20 million for the construction of a 5 megawatt (MW) solar power plant in Central Tapanuli (North Sumatra). Other topics included the manufacturing sector, fishery sector, the digital economy, and the promotion of peace and stability.

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The government of Indonesia will offer 21 geothermal blocks to investors over the next two years. Combined these 21 blocks, which are estimated to require USD $4.2 billion in investment, have a power generation capacity of 1,065 megawatt (MW). An official of Indonesia's Ministry of Energy and Mineral Resources said most of the geothermal power blocks will be offered through an open auction. The first auction is expected to take place in March 2016.

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While one month ago we read (in Indonesian media) that Indonesian President Joko Widodo vowed no increase in prices of subsidized fuels before the end of 2022, the situation suddenly changed. Based on reports in Indonesian media in the second half of August 2022 there were growing signs that the government was busy preparing a significant increase in prices of subsidized fuels (involving Pertalite and Pertamax gasoline fuels as well as automotive diesel oil) to safeguard a healthy budget balance for the government.

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Subscribers may have noticed that over the past couple of months, perhaps even the past half year, we devoted one article per month to the topic of renewable energy. And, it is a combination of factors that motivates this decision.

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With the Ramadan month just having started, it is important to take a look at food prices in Indonesia. The Ramadan-Idul Fitri period is typically a period when prices rise amid a significant increase in demand.

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In March 2022 Indonesia’s fully state-owned electricity company Perusahaan Listrik Negara (PLN) announced that it decided to team up with the French Development Agency (Agence Française de Développement), which is a public financial institution that is focused on implementing policies defined by the French Government with the aim to fight poverty and promote sustainable development, to jointly develop a wind energy plant with a capacity of 200 megawatt (MW) in Pandeglang (in Banten). This project is called the Banten Wind Farm Power Development.

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Energy is certainly the ‘thing’ to watch in the years, well decades, ahead. Amid heavy political pressures from the West, the world is heading for an unprecedented energy transition in which fossil fuels are going to be replaced by renewable energy sources. This is certainly great news for the environment (but whether the energy transition can ease, let alone stop, climate change – which is cited as the goal of this transition – seems iffy though).

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Currently, coal certainly ranks among the most interesting commodities. On the one hand, Indonesia expressed its commitment to reduce consumption of this dirty fossil fuel (that is especially used as raw material for the generation of electricity in power plants but also in various manufacturing industries such as the cement industry and textile industry) as the country seeks to become ‘carbon neutral’ by 2060 (although many doubt to what extent Indonesia is really committed to this ambition; after all, it has more immediate concerns such as the dozens of millions of Indonesians living below, and just above, the national poverty threshold).

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The Energy and Mineral Resources Ministry of Indonesia has recently been making efforts to encourage the development of solar energy around this vast Archipelago. On 20 August 2021 it issued Energy and Mineral Resources Ministry Regulation No. 26 of 2021 on Solar Rooftop Connected to the Grid of Power Supply Business License for Public Interest Holders (henceforth: Regulation 26/2021).

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Besides the novel coronavirus (COVID-19) outbreak, another big news story in March 2020 was the massive decline of global crude oil prices. Not only is the price of oil under pressure because of the enormous slowdown in economic activity as various governments have imposed restrictions (such as travel bans) in an attempt to curb the further spread of the coronavirus, but there also emerged big tensions between some of the world’s biggest oil producers that led to tumbling oil prices.

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Shares of Perusahaan Gas Negara, the largest natural gas transportation and distribution company in Indonesia, are showing spectacular growth in 2018. On Tuesday (23/01) the company's shares surged 8.91 percent to IDR 2,690 a piece. So far this year, its shares have grown a whopping 53.71 percent. What is the story behind this spectacular performance?

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Amid rising mining commodity prices, Indonesian coal mining company Adaro Energy saw its share price surge at the start of 2018. The mining index is actually the best-performing index so far this year in Indonesia, rising 13.58 percent since the start of the year. Being a mining company - or more precisely an energy company (as it recently entered the power generation sector) - Adaro Energy is among the major beneficiaries.

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