Below is a list with tagged columns and company profiles.

Today's Headlines Coal

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

    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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  • Indonesia Investments' Newsletter of 17 April 2016 Released

    Indonesia Investments' Newsletter of 17 April 2016 Released

    On 17 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 hot topics and economic matters such as an update on GDP growth, Bank Indonesia's new benchmark monetary tool, the palm oil sector, the coal price, the trade balance, an excise tax on plastic items, and more.

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  • Indonesian Coal Association: Coal Price to Remain around $50/ton in 2016

    Indonesian Coal Association: Coal Price to Remain around $50/ton in 2016

    The Indonesian Coal Mining Association (APBI) expects the coal price to remain stable around USD $50 per ton in the remainder of 2016. Indonesia's benchmark thermal coal price (harga batubara acuan, abbreviated HBA), which is set (on a monthly basis) by the Energy and Mineral Resources Ministry, rose 1.4 percent (m/m) to USD $52.32 per ton in April 2016. Since February the HBA has been climbing in three consecutive months. The last time Indonesia's benchmark coal price recorded a three-month gaining streak was in the October-December 2013 period.

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  • Coal Mining News: Peabody Energy Files for Chapter 11 Bankruptcy

    Coal Mining News: Peabody Energy Files for Chapter 11 Bankruptcy

    The world's number one privately-owned coal producer, US-based Peabody Energy Corp, filed for bankruptcy protection on Wednesday (13/04) after its debt burden became too high amid recent expansion efforts, a cancelled asset sale, and slumping coal prices. All of the miner's offices and mines will continue operations as usual during the bankruptcy process. The case of Peabody Energy is one of the world's largest ever bankruptcy cases in the commodities sector. Trading of Peabody Energy's shares has been suspended immediately.

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  • Coal Mining in Indonesia: Limited Reason for Optimism

    Coal Mining in Indonesia: Limited Reason for Optimism

    Having been the center of negative attention for quite some years now, Indonesia's coal mining sector has given some room for speculation that conditions will improve. Indonesia's coal price (Harga Batubara Acuan, abbreviated HBA), a monthly price set by Indonesia's Energy and Mineral Resource Ministry and mostly based on the average of global coal prices, rose 1.3 percent (m/m) to USD $51.62 per ton in March 2016. Although it is much too early to start speculating about a sustained rebound, the increase is remarkable as it is the first time in exactly one year that the HBA manages to rise.

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  • Indonesia Investments' Newsletter of 13 March 2016 Released

    Indonesia Investments' Newsletter of 13 March 2016 Released

    On 13 March 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 economic matters such as the performance of Indonesian blue chip stocks, the impact of negative interest rates in the Eurozone, logistics costs, coal mining, crude palm oil, Japanese investment, and more.

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  • Not Enough Coal Reserves to Supply Indonesia's 35,000 MW Power Program?

    Not Enough Coal Reserves to Supply Indonesia's 35,000 MW Power Program?

    The Indonesian Coal Mining Association (APBI) advises the central government to recalculate the amount of coal required for Indonesia's 35,000 MW power plant program. According to APBI, Indonesia does not have enough coal reserves to serve as power source for this ambitious program. The program, launched by President Joko Widodo in 2015, aims to add a total of 35,000 MW to the nation's power capacity by 2019 (about 20,000 MW being coal-fired plants). PriceWaterhouseCoopers states that Indonesia may have depleted its coal reserves by the year 2033.

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  • Indonesia Consumes more Coal due to Power Plant Development

    Indonesia Consumes more Coal due to Power Plant Development

    While global coal prices continue to slide, there emerged some support as Indonesia is estimated to consume more coal in 2016 in its coal-fired power plants. According to Indonesia's Ministry of Energy and Mineral Resources, domestic consumption of coal will rise 7.7 percent year-on-year (y/y) to 86 million tons in 2016 from 79.8 million tons in 2015. The ministry set the domestic market obligation (DMO), the minimum amount of coal that Indonesia's coal producers need to supply to the local market, at 86 million tons. The DMO is set to ensure sufficient power generation in Southeast Asia's largest economy.

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  • Trade Indonesia: Exports Resource-Rich East Kalimantan Plunge

    Trade Indonesia: Exports Resource-Rich East Kalimantan Plunge

    Indonesia's commodity-rich East Kalimantan is one of the worst affected Indonesian provinces in terms of global trade and weak commodity prices. East Kalimantan's export performance is heavily dependent on prices of oil, natural gas and coal. In 2015 the total value of East Kalimantan's exports plunged 30.4 percent year-on-year (y/y) to USD $18.3 billion from USD $26.35 billion in the preceding year. Since 2011 the province's exports have posted a consecutive annual decline in line with the declining trend of commodity prices.

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  • Indonesia Investments' Newsletter of 21 February 2016 Released

    Indonesia Investments' Newsletter of 21 February 2016 Released

    On 21 February 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 economic matters such as new rules regarding banks' net interest margin, an update on Indonesia's trade balance, interest rates, the 2016 State Budget, the coal industry, the cement industry, and more.

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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.

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  • 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.

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  • 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.

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  • 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.

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  • 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?

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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).

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