Below is a list with tagged columns and company profiles.

Today's Headlines Coal

  • DBS Group: Indonesia's Coal Mining Sector in a Challenging Environment

    The DBS Group Research expects that the coal price will remain in the range of USD $60 - $65 per metric ton in the second half of 2016. Given that coal demand from China remains bleak (as authorities are eager to meet environmental accords) chances are slim that the coal price can manage to go higher. For Indonesia, a country that - in terms of commodity exports - is highly dependent on coal and crude palm oil, it means challenges remain despite the recently sharply rebounding coal prices.

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  • Mining in Indonesia: Is the Recent Coal Price Rally Sustainable?

    Coal miners have become cheerful over the past two months as coal prices have surged sharply. Indonesia's thermal coal price (in Indonesian: Harga Batubara Acuan, abbreviated HBA), a monthly price set by Indonesia's Energy and Mineral Resource Ministry and which is based on domestic and global coal prices, soared 9.5 percent (m/m) to USD $63.93 metric tons in September 2016, touching its highest level since April 2015. Moreover, in the preceding month the HBA had already surged by 10.1 percent (m/m). What explains this rise and is it sustainable?

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  • Coal Mining Update Indonesia: Coal Prices Continue to Rise

    Indonesia's thermal coal price (in Indonesian: Harga Batubara Acuan, abbreviated HBA), a monthly price set by Indonesia's Energy and Mineral Resource Ministry and based on both domestic and global coal prices, rose 9.5 percent month-on-month (m/m) to USD $63.93 metric tons in September 2016, touching the highest level since April 2015. The recent rally is caused by supply cuts in combination with rising coal demand from China. Regarding the near-term, thermal coal prices are believed to have more upside room due to the approaching winter season.

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  • Coal Mining Industry Indonesia: China Cuts Output, Prices Rise

    Over the past two months global coal prices have surged, primarily on the back of rising coal demand in China where local coal production capacity was curtailed as authorities seek to curb industrial overcapacity. Indonesia's coal price (Harga Batubara Acuan, abbreviated HBA), a monthly rate set by the nation's Energy and Mineral Resource Ministry, rose 10.1 percent (m/m) to USD $58.37 per ton in August from USD $53.00 per ton in the preceding month, a remarkable rebound that pushed the HBA to a one-year high.

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  • Coal Mining Update Indonesia: Coal Price Rises in July

    Indonesia's benchmark thermal coal price (harga batubara acuan, HBA), the monthly reference price that is set by the Ministry of Energy and Mineral Resources, rose 2.29 percent (m/m) to USD $53 per metric ton (FOB) in July 2016. The Energy Ministry stated that the higher coal price is supported by the recovery in crude oil prices in May and the start of June, as well as a (temporary) rise in coal demand from India and China. However, compared to one year ago, the coal price is still down by more than 10 percent (y/y).

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  • Indonesia's Reference Coal Price Rises 1.3% m/m in June 2016

    The June 2016 reference thermal coal price of Indonesia (in Indonesian: Harga Batubara Acuan, HBA), a price set by Indonesia's Energy and Mineral Resources Ministry on a monthly basis, rose 1.3 percent month-on-month to USD $51.81 per metric ton (FOB). In line with our earlier predictions, Indonesia's coal price has been stabilizing just above the USD $50 per ton level so far this year, supported by miners' decision to cut output amid low coal prices. Meanwhile, coal prices in Europe surged to the highest level in ten months, buoyed by rising fuel prices as well as supply disruptions.

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  • Coal Production Indonesia Expected to Fall in 2016 & 2017

    There will not be a rebound in the coal industry anytime soon. Indonesia, one of the world's leading (thermal) coal producers and exporters, says the nation's coal output will continue to decline in 2016 and 2017. This continued decline in production is caused by the decision of smaller miners to cease production amid the globe's low coal prices that touched a decade-low earlier this year. There should occur a positive side-effect, however, if miners indeed cut their output and that is upward support for coal prices.

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  • Indonesia Investments' Newsletter of 24 April 2016 Released

    On 24 April 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 political and economic matters such as Joko Widodo's visit to Europe, the monetary policy of Bank Indonesia, Indonesia's Gini ratio, the palm oil and coal sectors, foreign ownership of property in Indonesia, the problems surrounding infrastructure spending in Indonesia, and more.

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  • BHP Billiton Considers to Stop Operations at its Indonesian Coal Assets

    Australia-based BHP Billiton, the multinational firm engaged in copper, iron, gold, and coal mining, is reportedly considering to stop operations at its Indonesian coal mining sites - or even to sell these assets - due to the unattractive outlook for the global coal price. Through a 75 percent stake in IndoMet Coal, BHP Billiton holds seven (long-standing) Coal Contracts of Work (PKP2B) in Central Kalimantan. The company is now conducting a strategic review of all its business operations (including the Indonesian assets) to determine which direction to take.

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  • Coal Trade Indonesia-Philippines Disturbed by Abu Sayyaf Ship Hijackings

    Coal shipments between Indonesia and the Philippines are disrupted by the recent series of incidents that occurred in the seas off the coast of the southern Philippines. Two Indonesian coal ports are now (temporarily) disallowing Indonesian ships from transporting coal to the Philippines. Security concerns heightened after members of the militant Al Qaeda-linked Abu Sayyaf network (based in the southwestern part of the Philippines) captured 18 Indonesians and Malaysians in three separate ship hijackings in recent weeks. It is feared that the waters around the southern Philippines become the new Somalia.

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Latest Columns Coal

  • Indonesia’s Reference Coal Price Hits All-Time Low in May 2015

    On Monday (11/05), it was announced that the reference coal price of Indonesia declined 5.2 percent (month-on-month) to an all-time low of USD $61.08 per metric ton in May. This benchmark price, which is set by the government each month based on the average of four coal indexes (Indonesia Coal Index, Platts Index, New Castle Export Index and New Castle Global Coal Index), continued to plummet due to the coal oversupply in combination with weak global coal demand (particularly falling demand from China).

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  • Coal Mining Industry Indonesia: Higher Royalties for IUP-Holders

    The government of Indonesia plans to raise royalties for coal mining companies that hold a Mining Business Permit (Izin Usaha Pertambangan, abbreviated IUP) by revising Government Regulation No. 9 - 2012 on Tariff and Types of Non-Tax Revenue in a move to generate more state income. R. Sukhyar, Director General for Coal and Mineral Resources at the Indonesian Ministry of Energy and Mineral Resources, said that the domestic coal industry remains a vital source of state income, particularly amid diminished mineral exports.

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  • Mining Indonesia | Introduction and Overview

    Mining in Indonesia includes a part or all stages of coal and mineral exploration and exploitation. Minerals are defined by law number 4 of 2009 on Mineral and Coal Mining (“Mining Law”) as inorganic compounds which possess specific characteristics and compositions in the form of ores. Coal is defined as sediment of organic carbon which is naturally formed from plants. Mining in Indonesia does not include any activities related to exploration and exploitation of geothermal, oil and gas and ground water.

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  • Mineral Resources Indonesia: Copper Concentrate and Coal Export Update

    Global copper prices can come under pressure as Newmont Nusa Tenggara (NNT) has started to export copper concentrate again this week after a nine-month hiatus caused by the dispute between the Indonesian government and NNT about Law No. 4 of 2009 on Mineral and Coal Mining (the “New Mining Law” of Indonesia), which sets high export taxes on unprocessed mineral exports (and stipulates a complete ban by 2017), in an effort to force Indonesian miners to build local processing facilities.

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  • Update on Jakarta Composite Index and Indonesian Rupiah Exchange Rate

    The benchmark stock index of Indonesia - known as the Jakarta Composite Index or IHSG - rose 0.17 percent to 4,921.39 points on Tuesday (13/05), impacted by investors' reaction to positive earnings reports of Indonesian coal miners in the first quarter of 2014. Today, foreign investors recorded net buying of IDR 64 billion (USD $5.6 million) and accounted for 31 percent of trading activity. However, investors remain cautious ahead of the presidential election that is scheduled for 9 July 2014 and wait for more clarity about the (vice) presidential candidates that will compete.

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  • Coalbed Methane Production in Indonesia Far from Successful

    Production of coalbed methane (CBM) in Indonesia will most likely not meet the government's target of 500 million standard cubic feet per day (mmscfd) in 2015. Coalbed methane, an environmental friendly fuel, is a form of natural gas that occurs in coal beds. Although the production of CBM is a complementary aspect of coal mining, it has only started to gain attention in recent years. CBM reserves in Indonesia, estimated at 453 trillion cubic feet (tcf), are among the world's largest CBM reserves (6 percent of total global CBM reserves).

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  • What about Indonesia's Coal Mining Sector? A Short Overview and Analysis

    Coal is one of the most important commodities for Indonesia in terms of state revenue as it accounts for about 85 percent of the country's total mining revenue. Therefore, when global coal prices fell sharply from 2011 (amid a slowing global economy), Indonesia felt the impact. In a response to lower coal prices, Indonesian miners actually increased coal output thus placing more downward pressure on coal prices and profit margins. Although the coal industry will remain frail for some time to come, long-term prospects are still strong.

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  • Government of Indonesia Plans to Raise Royalties for Coal Miners

    Indonesia's Ministry of Energy and Mineral Resources plans to set royalties for all types of coal at 13.5 percent (of net sales) as part of a revision of Government Regulation No. 9 - 2012 on Tariff and Types of Non-Tax Revenue. Currently, the percentage of royalty depends on the quality of the coal that is extracted as well as the type of permit that is issued to the coal miner. Apart from higher coal royalties, the Indonesian government also proposes a windfall profits tax in case there is a sharp upward price correction.

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  • Indonesian Economic and Financial Update: Challenges in October

    ICRA Indonesia, an independent credit rating agency and subsidiary of ICRA Ltd. (associate of Moody's Investors Service), publishes a monthly newsletter which provides an update on the financial and economic developments in Indonesia of the last month. In the October 2013 edition, a number of important issues that are monitored include Indonesia's inflation rate, the trade balance, the current account deficit, the IDR rupiah exchange rate, and gross domestic product (GDP) growth. Below is an excerpt:

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  • Plan to Increase Revenues from Indonesia's Coal Sector may Backfire

    Concerns have arisen over the government's plan to increase royalties and export duties for coal. The Indonesian Coal Mining Association (APBI) expects that this policy will lead to the closure of various coal miners while increasing acts of illegal mining. According to Bob Kamandanu, chairman of the APBI, 60 million tons of coal per year is not listed by any authority and thus can be labeled 'illegal'. Illegal coal mining also implies that the Indonesian government misses out on about IDR 5.6 trillion (USD $495.6 million) per year.

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