Below is a list with tagged columns and company profiles.

Today's Headlines Coal

  • Coal Mining in Indonesia: Coal Production & Export Update

    Coal Mining in Indonesia: Coal Production & Export Update

    Indonesian coal exports seem not affected by the new licensing system - the ‘Listed Exporter’ status (Indonesian: Eksportir Terdaftar, ET) - that was implemented on 1 October 2014. Previously, it was feared that coal exports could plunge up to 20 percent in October as the new licensing system led to confusion. Various Indonesian mining companies said that they had difficulty to secure the new export permits. According to government data, Indonesian coal exports reached 31.4 million tons, up 22.2 percent from the previous month.

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  • Amid Sluggish Global Economy Value of Indonesian Exports Revised Down

    With China’s economic growth slowing to 7.3 percent year-on-year (y/y) in the third quarter of 2014, Indonesian exports will be affected as China is one of Indonesia’s most important trading partners. Prior to the release of China’s Q3-2014 GDP growth result, the outgoing government of Indonesia had already trimmed its export target for 2014 as global commodity prices have still not picked up. In fact prices of palm oil, coal, rubber, copper and iron ore have fallen in the first three quarters of 2014 according to Indonesian government data.

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  • Illegal Coal Shipments from Indonesia Form a Persistent Problem

    R. Sukhyar, Director General for Coal and Mineral Resources at the Indonesian Ministry of Energy and Mineral Resources, stated that the country is plagued by structural illegal coal shipments from coal-rich regions in Kalimantan and Sumatra. Sukhyar estimates that each year between 30 and 40 million tons of coal is exported illegally from Indonesia, Southeast Asia’s largest economy. Based on current coal prices, this would imply that USD $1.2 billion worth of coal is shipped illegally per year causing the government to miss out on royalties.

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  • Indonesia Coal Update: Export, Production and New License System

    Indonesia Coal Update: Export, Production and New License System

    The Indonesian government cannot inform yet about the exact impact of the recently introduced ‘Listed Exporter’ status (Indonesian: Eksportir Terdaftar, ET) on Indonesian coal exports. In the first three quarters of 2014, Indonesia exported a total of 234.8 million tons of coal. The government targets to produce between 390 and 420 million tons of coal this year (of which 90 million tons are required to be absorbed by the domestic market). However, newly introduced rules in the coal industry have led to confusion and may limit coal exports.

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  • Joko “Jokowi” Widodo to Reform Indonesian Energy Sector

    Indonesia’s seventh president Joko Widodo, who will take office on 20 October 2014, wants to conduct several reforms in Indonesia’s energy sector in an attempt to combat illegal practices and optimize state income. Firstly, Joko Widodo, popularly known as Jokowi, plans to audit operations of state-owned Pertamina’s energy trading unit Petral to halt alleged fuel smuggling and corruption. Secondly, Jokowi wants to impose major changes at Pertamina. Lastly, the president-elect wants to curb coal exports to ensure domestic supplies for power plants.

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  • Coal Mining News Update Indonesia: Production, Export and China Ban

    Indonesia’s Ministry of Energy and Mineral Resources said that in the period January-August 2014 Indonesian coal production reached 280 million tons and coal exports 224 million tons. Director General for Coal and Mineral Resources R. Sukhyar added that miners that hold Coal Contracts of Work (PKP2B) account for 80 percent of total domestic coal production, while Mining Business Permit (IUP) holders account for the remainder. The Ministry targets total coal production to reach between 390 and 420 million tons in 2014.

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  • Introduction New Export Rules for Indonesian Coal Miners Delayed

    Indonesia's tighter coal export policy, originally scheduled to be implemented on 1 September 2014 has been delayed one month. Director General for Coal and Mineral Resources at the Ministry for Energy and Mineral Resources, R. Sukhyar, explained that this delay does not mean that the policy will be changed. Indonesian coal miners still need to obtain a ‘listed exporter’ status (Eksportir Terdaftar, ET) from the ministry to export coal. The new rule applies to miners that hold Coal Contracts of Work (PKP2B) and Mining Business Permits (IUP).

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  • Electricity in Indonesia: Plenty Natural Resources but Shortage of Electricity

    Despite having abundant natural resources at its disposal (including coal and gas), Indonesia has difficulty to supply enough electricity to its people and businesses. Robust economic growth over the past decade has given rise to increased domestic demand for electricity but the country has not been able to adequately meet demand resulting in frequent blackouts and in one of the lowest electrification rates (the percentage of Indonesian households connected to the nation's electricity grid) in the region (about 80.4 percent at end-2013).

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  • Heavy Equipment Market in Indonesia Burdened by Low Commodity Prices

    The production of heavy equipment in Indonesia in the first half of 2014 fell by 25 percent (year-on-year) to 2,292 units. The decline in production is due to the still weak state of the mining and construction sectors in Southeast Asia’s largest economy. Main reasons being the implementation of the mineral ore export ban in January 2014 and low commodity prices, for example coal. Limited construction projects have been undertaken in the first half of 2014 as investors wanted to wait for the results of Indonesia’s legislative and presidential elections first.

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  • Coal Mining in Indonesia: Coal Production Grows in First Half of 2014

    Indonesian coal production reached 213 million tons in the first half of 2014, a 7.6 percentage point growth from the same period in the previous year (198 million tons), as coal miners have been boosting coal output amid sluggish international coal prices. Approximately 75 percent of this output (158 million tons) was exported abroad. Indonesia is the world’s largest thermal coal producer and exporter. The country’s coal primarily consists of the medium-quality type (between 5100 and 6100 cal/gram) and the low-quality type (below 5100 cal/gram).

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Latest Columns Coal

  • Mining Indonesia | Introduction and Overview

    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

    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

    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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  • After Lebaran Holiday Indonesia's Main Stock Index Starts in the Red

    After its one-week holiday, Indonesia's main stock index (IHSG) started in negative territory. The index fell 0.93 percent to 4,597.78 on Monday (12/08) with the country's miscellaneous industry sector and the consumer goods sector leading the fall. It is interesting to note that most Indonesian mining companies showed significantly rising share prices as prices of mining commodities are expected to increase. According to Morgan Stanley, coal imports to India will grow while the global coal price has already reached its lowest point.

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  • Indonesia Consumes more Electricity but Investments still Needed

    State-owned electricity provider Perusahaan Listrik Negara (PLN) stated that consumption of electricity in Indonesia grew 7.2 percent to 90,48 terawatt hour (twh) in the first six months of 2013 compared to the same period last year. Head of PLN's Commercial Division, Benny Marbun, explained that Indonesia's industrial sector particularly consumed more electricity. Although industrial customers of PLN only grew by 4.5 percent in Semester 1-2013 (YoY), industrial electricity consumption grew 8.3 percent (YoY).

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