Below is a list with tagged columns and company profiles.

Today's Headlines Coal

  • Indonesia Lowers 2015 Coal Production Target on Weak Global Context

    Indonesia Lowers 2015 Coal Production Target on Weak Global Context

    The government of Indonesia lowered its coal production target for 2015 from 425 million tons to 400 million tons as most Indonesian coal miners have cut production targets amid low global demand and weak prices. Domestic coal demand has also reduced primarily due to lower demand from state-owned power company Perusahaan Listrik Negara (PLN). In the first half of 2015, Indonesia (the world’s top thermal coal exporter) produced 204 million tons according to the Ministry of Energy and Mineral Resources.

    Read more ›

  • Government of Indonesia Postpones the Coal Royalty Hike

    Government of Indonesia Postpones the Coal Royalty Hike

    The government of Indonesia decided to postpone its plan to raise royalties for the country’s coal miners. Bambang Gatot, senior official at the Ministry of Energy and Mineral Resources, said the government will not raise coal royalties yet given the sector’s current troubled climate (referring to low global coal prices). Indonesian coal miners will be happy to hear this news as they, especially the smaller-sized coal miners, are having difficulty to survive in the post-2000s commodities boom era.

    Read more ›

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

    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.

    Read more ›

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

    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.

    Read more ›

  • 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.

    Read more ›

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

    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.

    Read more ›

  • 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.

    Read more ›

  • Coal Production Indonesia Surprisingly Low in First Quarter 2015

    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.

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

Latest Columns Coal

  • 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.

    Read more ›

  • Indonesian Coal Mining Companies in Focus: Adaro Energy

    Indonesian Coal Mining Companies in Focus: Adaro Energy

    The recently rallying coal price is a major boost for leading Indonesian coal miner Adaro Energy. Mirae Asset Sekuritas noted in a new report that Adaro Energy is in a great position to book higher corporate earnings in the years ahead because the miner's structure (and subsidiaries) are highly integrated and therefore it can more-or-less control the costs and risks in each business stage.

    Read more ›

  • Indonesian Coal Miners in Focus: Tambang Batubara Bukit Asam

    Indonesian Coal Mining Companies in Focus: Tambang Batubara Bukit Asam

    The soaring benchmark thermal coal price of the Indonesian government (called harga batubara acuan, abbreviated HBA), which is set (on a monthly basis) by the Energy and Mineral Resources Ministry, should boost earnings of listed Indonesian coal miner Tambang Batubara Bukit Asam in 2017. The HBA price nearly doubled to USD $102 per metric ton in December from the year-start. Besides the rising coal price, the company should also see improving corporate earnings due to its expected rising sales volume.

    Read more ›

  • Indonesian Coal Mining Companies in Focus: Harum Energy

    Indonesian Coal Mining Companies in Focus: Harum Energy

    The sharply rallying coal price in the second half of 2016 and its strong cash position (a sign of financial strength and liquidity) is the right recipe for listed Indonesian coal miner Harum Energy to post strong corporate earnings this year. In fact, Indonesian securities company Trimegah Securities believes that Harum Energy is the coal miner that will benefit the most of all listed coal miners on the Indonesia Stock Exchange (IDX) because 95 percent of its coal sales is sold on the spot market.

    Read more ›

  • Indonesia's Coal Price Soaring, Reason for Euphoria? Or Not?

    Indonesia's Coal Price Soaring, Reason for Euphoria? Or Not?

    Indonesia's November 2016 coal price broke a record. The nation's benchmark thermal coal price (locally known as the Harga Batubara Acuan, HBA) - a monthly price set by Indonesia's Energy and Mineral Resources Ministry and which is based on domestic and international coal indices - jumped 22.9 percent month-on-month (m/m) to USD $84.89 per metric ton this month, the highest monthly HBA price rise ever recorded. Compared to the start of the year, Indonesia's coal price has now risen 59.6 percent, the sixth straight monthly gain. But is this reason for euphoria?

    Read more ›

  • Coal Mining Update Indonesia: Production Down, Consumption Up

    Coal Mining Update Indonesia: Production Down, Consumption Up

    Many Indonesian coal miners that are listed on the Indonesia Stock Exchange (IDX) have seen their shares surge in the past couple of months supported by the recovering coal prices. 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 from USD $50.92 per metric ton in February 2016 to USD $63.93 per ton in September.

    Read more ›

  • Commodities Indonesia: Moratorium on New Coal Mining Concessions

    Commodities Indonesia: Moratorium on New Coal Mining Concessions

    Indonesia's Ministry of Energy and Mineral Resources will soon issue a moratorium on new coal mining concessions. This moratorium will be implemented after the issuance of a planned presidential instruction regarding a five-year moratorium on new palm oil plantation concessions. Heriyanto, Head of the Legal Department Directorate General of Minerals and Coal at the Energy Ministry, emphasized that the moratorium in Indonesia's mining industry only involves coal, not the mining of minerals.

    Read more ›

  • Coal Remains King in Indonesia: Rising Domestic Consumption of Coal

    Mining Commodities Update Indonesia: Rising Domestic Consumption of Coal

    Domestic coal consumption in Indonesia rose 34.5 percent (y/y) to 24.5 million tons in the January-April 2016 period, according to data from Indonesia's Energy and Mineral Resources Ministry. This growth is caused by higher domestic coal demand due to Indonesia's ambitious 35,000 MW program (many of the power plants constructed in this program are coal-fired). Meanwhile, Indonesia's coal exports were down 14 percent (y/y) to 68 million metric tons over the same period amid sluggish global demand.

    Read more ›

  • Indonesia's Controversial Batang Power Plant: Human Rights & Environment

    Indonesia's Controversial Batang Power Plant: Human Rights & Environment

    Last week it was announced that the Japan Bank for International Cooperation (JBIC) agreed to a USD $3.4 billion loan for the construction of the controversial Batang power plant in Central Java. This power plant project is controversial as it met fierce resistance from the local community (triggering concerns about human rights violations related to the land acquisition process) as well as criticism from environmental groups, saying this power plant - set to become Indonesia's largest coal-fired power plant - runs counter to Indonesia's earlier commitment to reduce carbon emissions.

    Read more ›

  • Indonesian Companies in Focus: Coal Miner Adaro Energy

    Indonesian Companies in Focus: Coal Miner Adaro Energy

    Adaro Energy, one of Indonesia's leading coal mining companies, is still plagued by the globe's weak coal prices. However, the company's estimated lower cash and operational costs give a positive boost to the miner's corporate earnings this year. According to Danareksa Sekuritas' estimates the cost of mining for Adaro Energy (outside royalty payments) will range between USD $26 - $28 per ton in 2016, slightly down from USD $28 per ton last year. Meanwhile, the miner's stripping ratio is expected to decline to 4.7x in 2016 (from 5.2x last year).

    Read more ›