Below is a list with tagged columns and company profiles.

Today's Headlines Oil Price

  • Stock Market Update Asia: Post-Brexit Rally Completed?

    Stock Market Update Asia: Post-Brexit Rally Completed?

    After a five-day winning streak in the post-Brexit era, the majority of Asian shares fell on Tuesday (05/07) as investors are engaging in profit-taking after the recent rally. Not even rising expectation of more stimulus measures from several key central banks around the globe managed to entice investors and boost appetite for stocks. Crude oil also fell on concerns over the global economy. Meanwhile, the safe haven assets gold and Japan's yen strengthened, while government bond yields fall to unprecedented levels. Indonesian markets are still closed for the Idul Fitri holiday (4 - 8 July 2016).

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  • Tax Revenue Realization Indonesia Update: In Need of Revision

    Tax Revenue Realization Indonesia Update: In Need of Revision

    Up to 9 June 2016 tax revenue realization in Indonesia reached IDR 364.1 trillion (approx. USD $27.4 billion), or 29 percent of the target that was set in the 2016 State Budget. This disappointing score is the result of (1) a too ambitious tax income realization target set by the government, (2) low commodity prices (particularly crude oil; curbing tax income from the nation's exports), (3) taxpayers' tax restitution (which rose 32.5 percent y/y in the January-June period), and (4) Indonesia's slower-than-expected economic growth.

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  • Indonesia Investments' Newsletter of 5 June 2016 Released

    Indonesia Investments' Newsletter of 5 June 2016 Released

    On 5 June 2016, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economic matters such as Indonesia's fiscal credibility, inflation, manufacturing activity, the impact of a possible US interest rate hike, credit ratings, slavery, crude oil, and more.

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  • What Are the Production Costs for One Barrel of Oil at Indonesia's Pertamina?

    What Are the Production Costs for One Barrel of Oil at Indonesia's Pertamina?

    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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  • Bank Indonesia Sees Easing Global Pressures & Controlled Inflation

    Bank Indonesia Sees Easing Global Pressures & Controlled Inflation

    The central bank of Indonesia (Bank Indonesia) sees easing pressures in the global economy in May 2016, reflected by the rising crude oil price. On Thursday (26/05), crude futures exceeded the USD $50 per barrel level for the first time since November 2015 (supported by production disruptions in Canada). Although oil futures declined again the following day on profit taking, the rising trend has persisted. In early 2016 crude oil traded below USD $30 a barrel, plunging some 21 months due to the global supply glut and weak global economic growth.

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  • Financial Market Analysis Indonesia: Why is the Rupiah Weakening Today?

    Financial Market analysis Indonesia: Why is the Rupiah Weakening Today?

    The Indonesian rupiah was under pressure on Tuesday (24/05). Based on the Bloomberg Dollar Index, the rupiah depreciated 0.47 percent to IDR 13,638 per US dollar, the weakest level since early February 2016. However, the Indonesian rupiah is not the only emerging market currency in Asia that was under pressure today. Meanwhile, Asia's emerging market stocks also declined. Negative market sentiments are caused by growing speculation about a sooner-than-expected interest rate hike in the USA as well as sliding oil prices.

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  • Government Trims Indonesia's GDP Growth Target in 2017 State Budget

    Government Trims Indonesia's GDP Growth Target in 2017 State Budget

    The government of Indonesia revised down its forecast for economic growth in 2017 to the range of 5.3 - 5.9 percent (y/y). On Friday (20/05) Indonesian Finance Minister Bambang Brodjonegoro informed parliament about the change in the growth outlook (related to the 2017 State Budget). Initially, the government projected Indonesia's 2017 GDP growth in the range of 5.5 - 5.9 percent (y/y). Brodjonegoro did not explain, however, why the government decided to revise down its GDP growth forecast in the 2017 State Budget.

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  • Indonesia Stock Market & Rupiah Update: Down on External Pressure

    Indonesia Stock Market & Rupiah Update: Down on External Pressure

    Asian stocks did not have a good start of the week. Most Asian stocks fell on Monday (25/04) in line with retreating oil prices, concerns that the US Federal Reserve may be hinting at further monetary tightening in its upcoming policy meeting, as well as concerns about China's debt and commodities markets. It all resulted in curbed demand for higher-yielding yet riskier Asian assets. Indonesia's benchmark Jakarta Composite Index fell 0.73 percent to 4,878.86 points, while the Indonesian rupiah depreciated 0.04 percent to IDR 13,199 per US dollar (Bloomberg Dollar Index).

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  • Asian Stock Markets down after Failed Oil Freeze Talks in Doha

    Asian Stock Markets down after Failed Oil Freeze Talks in Doha

    Stock markets in Asia are plagued by the failure to see an 'oil freeze deal' reached at OPEC's oil talks in Doha over the weekend. Saudi Arabia announced it will not curtail its oil production as long as other oil producing countries do not curtail production as well. It specifically wants its geopolitical rival Iran to join the production freeze. However, Iran decided not to join the meeting and ruled out any output cuts after recently rejoining the international oil market (due to the lifting of sanctions). Iran indicated it is not cut any output before its oil production reaches the pre-sanction level.

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  • Asian Stocks Strong on China's Trade Data, Weaker Yen & Oil Outlook

    Asian Stocks Strong on China's Trade Data, Weaker Yen & Oil Outlook

    Most stocks in Asia were higher on Wednesday (13/04) supported by positive trade data from China and heightened expectation of an "oil output freeze deal" at the OPEC meeting coming Sunday in Doha. Indonesia's benchmark Jakarta Composite Index rose 0.49 percent to 4,853.00 points, a modest result compared with Japan's Nikkei 225 Index (+2.84 percent), Singapore's Strait Times Index (+2.69 percent), and China's Shanghai Composite Index (+1.42 percent).

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Latest Columns Oil Price

  • Indonesia's Infrastructure Spending Below Average, How Come?

    Indonesia's Infrastructure Spending Below Average, How Come?

    If we take a look at Indonesia's central government spending in the first four months of 2018, then we detect something interesting. Overall, government spending has grown in the January-April 2018 period (compared to the same period one year earlier). However, growth in government spending is led by rising social assistance spending and rising subsidy spending. Meanwhile, growth of infrastructure spending has been much less robust. Does this mean that the Indonesian government has curtailed infrastructure development spending in order to relieve rising pressures on the budget deficit?

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  • Oil & Indonesia: Interview with Economist Lana Soelistianingsih

    Oil & Indonesia: Interview with Economist Lana Soelistianingsih

    An interesting interview with Lana Soelistianingsih was published in Indonesian tabloid Kontan, a magazine that focuses on the economy and financial markets of Indonesia. Soelistianingsih is Head of Economy at Samuel Aset Manajemen as well as a teacher at the Economics Department of the University of Indonesia. The topic of the interview is crude oil.

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  • The Impact of Low Oil Prices on Listed Companies in Indonesia

    The Impact of Low Oil Prices on Listed Companies in Indonesia

    Overall, low crude oil prices are problematic for stock markets as low prices indicate the world economy is not expanding on full throttle. This curbs investors' risk appetite. Particularly those companies that are active in the oil industry (or in related industries) will likely face declining share prices. However, there are also positive effects of low oil prices. For example consumers' purchasing power should improve because prices at the gas pump are lower, while some companies can curb operational costs. Hence, consumer and transportation stocks should actually benefit from low oil prices.

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  • Stock & Currency Markets Indonesia: All Eyes on US Presidential Election

    Stock & Currency Markets Indonesia: All Eyes on US Election

    On Tuesday 8 November the people of the world's largest economy will vote for their next president. According to the latest polls the race between Hillary Clinton and Donald Trump is too close to call. This is the reason why we saw the global selloff last week: markets had already priced in a Clinton victory (who was leading the polls earlier) but when polls started to suggest a rather tight battle, many investors turned to safe haven assets. In the coming days investors will remain focused on the US presidential election.

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  • Fiscal Update Indonesia: Government Wants to Revise 2016 State Budget

    Fiscal Update Indonesia: Government Wants to Revise 2016 State Budget

    The government of Indonesia proposes to cut the state revenue target by IDR 88 trillion (approx. USD $6.5 billion) in the Revised 2016 State Budget. Indonesian Finance Minister Bambang Brodjonegoro announced the government has sent the proposal to the House of Representatives’ Budget Committee (Banggar) on Thursday (02/06). Expectations of lower government revenue is the result of weaker-than-estimated tax collection, the lower-than-initially-assumed Indonesian crude oil price as well as the lower-than- estimated oil and gas production in Indonesia.

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  • Indonesian Companies in Focus: Logindo Samudramakmur

    Indonesian Companies in Focus: Logindo Samudramakmur

    After declining below the USD $30 per barrel level in February 2016, crude oil prices have shown a rising trend, touching the USD $50 per barrel level. One of the companies that hopes this rising trend will continue is Indonesian company Logindo Samudramakmur, a company that provides offshore support vessels for oil & gas exploration. However, when oil prices are low, oil and gas exploration is limited. Moreover, existing clients request for lower prices of Logindo Samudramakmur's services.

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  • Bank Indonesia Expects Deflation in February 2016

    Bank Indonesia Expects Deflation in February 2016

    The central bank of Indonesia (Bank Indonesia) expects to see deflation at 0.15 percent month-to-month (m/m) in February 2016. Bank Indonesia Governor Agus Martowardojo said lower (government) administered prices in combination with low core inflation will be the recipe for deflation in the second month of the year. The lower administered prices that are primarily the cause of deflation consist of fuel prices, air fares and 12-kilogram liquefied petroleum gas (LPG) canisters. In the first month of the year Indonesian inflation accelerated to 4.14 percent (y/y).

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  • Snapshot of the Indonesian Economy: Risks, Challenges & Development

    Snapshot of the Indonesian Economy: Risks, Challenges & Development

    Tomorrow (05/02), Statistics Indonesia is scheduled to release Indonesia's official full-year 2015 economic growth figure. Nearly all analysts expect to see a figure that reflects the continuation of slowing economic growth. Southeast Asia's largest economy expanded 5.0 percent in 2014 and this is expected to have eased further to 4.7 percent or 4.8 percent in 2015 on the back of (interrelated) sluggish global growth, low commodity prices, and weak export performance. Domestically, Indonesia has or had to cope with high interest rates and inflation (hence curtailing people's purchasing power and consumption as well as business expansion).

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  • Update Oil & Gas Sector Indonesia: Crude Oil Output to Rise in 2015?

    Update Oil & Gas Sector Indonesia: Crude Oil Output to Rise in 2015?

    Indonesia’s crude oil production is expected to increase starting from mid-March 2015 as new oil fields will start to come online this month, including the Bukit Tua oil field (part of the Ketapang block in East Java and which is operated by Petronas Carigali). Over the past two decades Indonesia oil output has declined drastically amid maturing oil fields and the lack of exploration as well as other investments in Indonesia’s oil & gas sector. In 2014, Indonesia produced an average of 794,000 barrels of oil per day (bpd).

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  • Indonesian Rupiah & Stocks Fall on Economic Concerns and Oil Price

    Indonesian Rupiah & Stocks Fall on Economic Concerns and Oil Price

    The Indonesian rupiah exchange rate depreciated on Wednesday (14/01) as global oil and other commodity prices continued to fall thus casting a negative spell on Indonesia’s currency. The rupiah depreciated 0.11 percent to IDR 12,614 per US dollar according to the Bloomberg Dollar Index. Market participants are concerned about the negative influence of low commodity prices on Indonesia’s export performance. Southeast Asia’s largest economy has had to cope with a wide trade and current account deficit in recent years.

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