Below is a list with tagged columns and company profiles.

Today's Headlines Coal

  • Infrastructure Indonesia Update: Bukit Asam’s Tarahan Coal Terminal Opened

    Indonesian Transportation Minister Ignatius Jonan inaugurated the new coal terminal, owned by state-controlled coal miner Tambang Batubara Bukit Asam (Bukit Asam), in Tarahan (South Sumatra) on Wednesday (10/06). The Tarahan coal terminal, which required USD $152 million in investment, has now become Indonesia’s largest commercial terminal having the ability to accommodate ships with a maximum capacity of 210,000 dead-weight tonnage (DWT). This maximum capacity of the terminal is scheduled to be enlarged to 240,000 DWT.

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  • Coal Mining Indonesia: Power Program, Price, Production & Renegotiations

    Conditions remain tough for Indonesian coal miners in the post-2000s commodity boom. Plagued by low global coal prices since 2008, Indonesian coal miners first raised production rates in order to maintain healthy balance sheets (hence exacerbating the supply glut and putting more downward pressure on coal prices). As this backfired, they then put in place more cost-efficient policies (such as curbing the stripping ratio) in an effort to safeguard profits. However, as prices continued to slide miners are now forced to limit production to survive.

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  • Indonesia Investments' Newsletter of 3 May 2015 Released

    On 3 May 2015, 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 in the last seven days. Most of the topics involve economic matters such as updates on Indonesia’s Q1-2015 economic growth, April inflation, the Trans-Sumatra toll road, foreign and domestic investment, the coal industry, the coffee industry, and more.

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  • Coal Mining Update Indonesia: Coal Production to Fall in 2015

    Pandu Sjahrir, Chairman of the Indonesian Coal Mining Association (APBI), said that Indonesia’s coal production could decline by 24 percent (y/y) in 2015 as the country’s coal miners have been cutting production volumes amid the world’s low coal prices. Reportedly, the free cash flow of various Indonesian coal miners have turned negative, meaning that generated cash from coal production cannot cover companies’ operational costs. In fact, the country’s coal miners are now eager to diversify to other businesses in order to stay alive.

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  • Indonesia Investments' Newsletter of 19 April 2015 Released

    On 19 April 2015, 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 in the last seven days. Most of the topics involve economic matters such as an update on Bank Indonesia’s interest rate policy, the performance of the rupiah, the March trade balance, updates on coal, palm oil, cement and car sales, GDP growth forecast, alcohol in Indonesia, and more.

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  • Coal Production Indonesia Surprisingly Low in First Quarter 2015

    Coal production in Indonesia fell 21 percent (y/y) to 97 million tons in the first quarter of 2015 as the country’s coal miners cut production volumes amid low coal prices. Some smaller Indonesian miners may even have stopped production altogether as production costs exceed coal prices. According to data from Indonesia’s Energy and Mineral Resources Ministry, 79 million tons of coal were exported in the first quarter, while the remaining 18 million tons were absorbed by the domestic market.

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  • Indonesian Government Flexible on Mandatory Letter of Credit (L/C)

    Amid unclarity over the newly introduced mandatory use of letters of credit (L/C), the Indonesian government has showed some flexibility. Starting from Wednesday (01/04) Indonesian exporters of four key commodities - coal, palm (kernel) oil, oil & gas, and minerals - are required to use L/C for all export deals. This new rule was developed in order to increase Indonesia’s export earnings and enhance monitoring sales of the country’s natural resources. However, a temporary exemption is now made possible.

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  • Coal Industry Indonesia: Confusion about Letter of Credit & Royalties

    The coal mining industry continued its downward trend in 2014 amid weak global coal demand and an oversupply on the market. The benchmark Newcastle port thermal coal price fell 29 percent (y/y) over 2014 and declined a further 8 percent in the first quarter of 2015. As a result, Indonesian coal miners reported mostly weak 2014 corporate earnings. However, Indonesian miners are concerned that two new regulations will cause more problems. The Indonesian government plans to raise coal royalties and introduce mandatory letters of credit.

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  • Indonesia Investments' Newsletter of 15 March 2015 Released

    On 15 March 2015, 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 in the last seven days. Most of the topics involve economic matters such as an analysis of the rupiah performance, a forecast on the February 2015 trade balance, earnings in Indonesia’s coal mining industry, the processed food & beverage industry, the Trans-Sumatra toll road, and more.

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  • Earnings Indonesian Coal Miners Down on Weak Global Coal Prices

    Corporate earnings of Indonesian coal miners that are listed on the Indonesia Stock Exchange (IDX) have generally weakened in 2014, evidencing that the coal mining industry, which was a lucrative business in the 2000s during the commodities boom (until 2011), is still experiencing a slowdown amid global economic trouble. The sluggish global economy has resulted in weak demand for commodities such as coal and crude palm oil (two important foreign exchange earners of Indonesia). Particularly slowing economic growth in China is a concern.

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Latest Columns Coal

  • Future of Coal in Indonesia’s Renewable Energy Push: Early Retirements & Clean Coal Technologies

    Future of Coal in Indonesia’s Renewable Energy Push: Early Retirements & Clean Coal Technologies

    As is widely known, coal is the most important energy source for the generation of electricity in Indonesia. Among the key reasons are that Indonesia has huge reserves of coal under its soils (hence it is relatively cheap to use coal, hence attracting plenty of private investment amid ever-growing electricity consumption in Indonesia over the past two decades) and efficient coal-fired power plant technology.

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  • Skyrocketing International Coal Prices; a Blessing for Indonesia’

    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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  • Coal Mining Update: Contract Extension Relaxation, Price Pressures & the Government’s Dilemma

    By revising Indonesian Government Regulation No. 23/2010, the Indonesian government plans to provide local coal miners more certainty by allowing an earlier submission of a request for the extension of mining concessions. Stakeholders in the mining sector argue that this would considerably strengthen the nation’s investment climate, specifically the coal mining industry, on the back of improved legal certainty.

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  • Coal Mining Policies in Indonesia: Coal Price Cap to Be Removed?

    Only a few months after the Indonesian government had imposed a price cap on mandatory sales of local coal to Indonesia's state-owned electricity company Perusahaan Listrik Negara (PLN) under the domestic market obligation (DMO) scheme, the government now plans to revise this regulation. Coming Tuesday (31/07) a high-level meeting is to take place where decisions will be taken.

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  • Indonesian Coal Mining Companies in Focus: Indo Tambangraya Megah

    Last week shareholders of Indonesia-based coal mining company Indo Tambangraya Megah decided to distribute USD $252 million in dividends to the company's shareholders, implying a nearly 100 percent dividend payout ratio of its full-year 2017 net income. The dividend payout is divided into USD $105 million worth of interim dividend (IDR 1,300 per share) and USD $147 million worth of final dividend (IDR 1,840 per share). Interim dividend was distributed on 21 November 2017, while the final dividend will be paid on 20 April 2018.

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  • Domestic Market Obligation Indonesia: Coal Price Capped at $70 per Ton

    Through Energy and Mineral Resource Ministry Regulation No. 19/2018 on the Procedures for Determining Benchmark Prices of Metal and Coal Sales as well as through Energy and Mineral Resource Ministry Regulation No. 1395 K/30/MEM/2018 on the Selling Price of Coal for the Electricity Supply for the Public Interest the Indonesian government confirmed a new set of rules in the coal mining sector, specifically regarding coal that is sold domestically under the domestic market obligation.

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  • Coal Mining Indonesia: Producers to Boost Production in 2018

    The big Indonesian coal miners that are listed on the Indonesia Stock Exchange expect to raise their production volumes in 2018 amid rising global demand and the subsequent stronger coal price. Moreover, most local coal companies were heavily affected by bad weather in 2017 and therefore their output had been curtailed naturally, while coal prices had actually been skyrocketing since mid-2016.

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  • Gov't Orders Local Shipping Services to Handle Coal & CPO Exports

    Through Trade Ministry Regulation No. 82/2017 on the Terms of Use of National Shipping and Insurance Companies for the Export and Import of Certain Goods the Indonesian government requires exporters of crude palm oil (CPO), coal and rice to use ships that are owned by local sea transport companies as well as to use domestic insurance. This regulation will come into effect, gradually, per May 2018.

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