Below is a list with tagged columns and company profiles.

Today's Headlines Coal

  • Indonesia Investments' Newsletter of 1 March 2015 Released

    On 1 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 a forecast for February inflation, an analysis of the rupiah exchange rate, news from the coal mining and palm oil sectors, Islamic finance, the IPO of Mitra Keluarga Karyasehat, and more.

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  • Coal Mining News: Indonesia Plans to Raise Coal Royalties in March

    Bad news for Indonesian coal miners as the government of Indonesia plans to raise coal royalties in March 2015 in a bid to increase revenue from the natural resources sector. Apart from raising royalties, the government will also implement measures to enhance monitoring in the coal mining sector (as illegal coal shipments and tax avoidance are a major problem). The plan to nearly double coal royalties are particularly expected to impact negatively on smaller miners and new firms that focus on the production of low-quality coal.

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  • Indonesia Investments' Newsletter of 25 January 2015 Released

    On 25 January 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 the impact of the Eurozone’s quantitative easing program on Indonesia’s stocks and currency, the global challenges that are being faced by Indonesia, an infrastructure update, international relations, and more.

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  • Challenges to the Indonesian Economy: Global Oil Price & US Normalization

    Governor of Indonesia’s central bank (Bank Indonesia) Agus Martowardojo said that there are two main global challenges that are being faced by Southeast Asia’s largest economy and which can impact negatively on the nation’s economy. These challenges are the low global oil prices (which have fallen below USD $50 per barrel) and the monetary policy normalization of the US Federal Reserve amid the structural economic recovery of the USA. This policy involves higher US interest rates (expected in the second half of 2015) and a bullish US dollar.

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  • News from Indonesia’s Coal Mining Industry: Production & Export

    Bob Kamandanu, Chairman of the Indonesian Coal Mining Association (APBI), advises the government of Indonesia to cut the country’s coal production by about 50 million tons and cap coal exports at 300 million tons in 2015 in an effort to boost global coal prices which are currently touching an eight-year low amid the sluggish global economy (particularly weakening coal demand from China) in combination with a coal oversupply. Indonesia is the world’s leading exporter of thermal coal which is primarily used in electricity generation.

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  • Global Economy: Commodity Prices under Pressure

    After the World Bank released a rather gloomy forecast for global economic growth on Tuesday (13/01) while crude oil prices continue to fall, global commodity prices have become under pressure on Wednesday’s trading day. In its latest Global Economic Prospects report, the World Bank said that the global economy will grow 3 percent year-on-year (y/y) in 2015, down from its previous estimate of 3.4 percent (y/y). Its growth forecast for economic growth in 2016 was also revised down from 3.5 percent (y/y) to 3.3 percent.

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  • Indonesia Investments' Newsletter of 11 January 2015 Released

    On 11 January 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 the performance of Indonesian stocks and the rupiah, an update on palm oil and coal, Indonesia’s subsidized fuel policy, but also topics such as flight schedule violations and Islamic radicalism.

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  • Indonesia Investments' Newsletter of 30 November 2014 Released

    On 30 November 2014, 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 the country’s revised inflation outlook, participation in the Asian Infrastructure Investment Bank, updates on palm oil and coal, car sales, Jokowi’s development targets, and more.

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  • 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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Latest Columns Coal

  • 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.

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  • Coal Remains King in 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.

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  • 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.

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  • 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).

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  • Indonesian Companies in Focus: Astra International Facing Challenges

    One of the leading diversified conglomerates in Indonesia, Astra International, is facing challenges. Demand for cars has been on the decline in Indonesia over the past two years. This is a big challenge for the company because the automotive sector accounts for about half of Astra's total earnings. Meanwhile, its heavy equipment & mining segment and the financial services segment have been under severe pressure. Net income in the heavy equipment & mining segment plunged 55 percent (y/y) in Q1-2016, while net income in the financial services segment tumbled 46 percent (y/y) over the same period.

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  • Tambang Batubara Bukit Asam: Only Coal Miner in Indonesia to See Growth?

    State-controlled coal mining company Tambang Batubara Bukit Asam may be the only Indonesian coal producer that will post higher sales in 2016, both in terms of volume and revenue. The nation's other coal miners are expected to see further dropping coal sales due to sluggish global demand although coal prices may stabilize this year. According to Trimegah Securities Bukit Asam's coal sales volume will rise 25 percent (y/y) to 23.9 million tons in 2016, while revenue is estimated to rise 9 percent (y/y) to IDR 15 trillion (approx. USD $1.1 billion), and coal mining operational costs to fall by 3 percent (y/y) to USD $39.8 per ton.

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  • Indonesia's United Tractors Plagued by Weak Demand for Heavy Equipment

    United Tractors, the largest distributor of heavy equipment in Indonesia, is still facing challenges due to persistently weak demand for heavy equipment amid low commodity prices. Business activity in the agribusiness, mining and infrastructure sectors have slowed This context is expected to lead to slowing net profit for the company in both 2015 and 2016. The company, a subsidiary of Astra International (Indonesia's largest diversified conglomerate), controls a market share of around 40 percent in Indonesia's heavy equipment market.

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  • Coal Production in Indonesia Down 15.4% to 263 Million Tons in January-August

    Coal production in Indonesia fell 15.4 percent to 263 million tons in the first eight months of 2015 (from 311 million tons in the same period last year) as Indonesian coal miners cut production due to low global coal demand. Last week it was reported that Indonesia’s reference thermal coal price hit another all-time low at USD $58.21 per metric ton (FOB), down 1.6 percent from the August reference rate, and the fifth consecutive month of decline. Meanwhile, Indonesia’s coal exports fell 18 percent to 211 million tons (y/y) in the January-August period.

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  • Rising Unemployment in Indonesia as Coal Miners Cease Production

    In the 2000s many Indonesian companies diversified their business to include coal mining (or shifting their core business to coal mining altogether) due to lucrative opportunities amid the 2000s commodities boom. However, since 2009 mining companies have had to face tough times. Especially since 2011 commodity prices have shown a declining trend and there remains little hope of a rebound on the short term as the sluggish global economic growth trend persists, particularly led by the economic slowdown in China.

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  • Coal Mining Industry Indonesia: Troubled Licenses & Falling Prices

    The government of Indonesia is eager to use current low coal prices as the context to push for consolidation in the country’s coal mining sector. Sudirman Said, Minister of Energy and Mineral Resources, announced that the government may revoke over 4,000 troubled mining licenses this month and install a better licensing system. Licenses that may be revoked are Mining Business Permits (IUPs), not the long-standing Coal Contracts of Work (PKP2B) that are held by companies such as Bumi Resources and Berau Coal Energy.

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