Below is a list with tagged columns and company profiles.

Today's Headlines Coal

  • Commodities Update: Why Coal Prices Will Remain Low

    Commodities Update: Why Coal Prices Will Remain Low

    The coal price will have serious difficulty to rise as long as crude oil prices remain low and China's economy remains in slowdown-mode. Weak global oil prices (expected to remain below USD $40 per barrel this month) - and the strong US dollar amid looming US monetary tightening - give a bad signal to other commodities, including coal, while the world's largest energy consumer China is struggling to combat its economic slowdown implying limited global coal demand.

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  • Coal Mining Update Indonesia: Price, Production & Export Still Down

    Coal Mining Update Indonesia: Price, Production & Export Still Down

    Indonesia will fail to achieve its coal production target of 425 million tons in 2015 as the country's coal miners have cut production by an estimated 20 percent. Domestic coal mining firms have cut coal output due to persistent low coal prices resulting in a negative free cash flow for many miners. Global coal prices have declined due to a supply glut and weaker global demand amid sluggish economic growth.

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  • Few Reasons to Get Excited about the Coal Mining Industry

    Few Reasons to Get Excited about the Coal Industry

    The global coal industry is still plagued by pessimistic sentiment. Not only has the global supply glut in combination with sluggish global economic growth put serious pressure on coal prices (while China introduced stricter coal quality tests on thermal coal imports), but most countries are also placing more emphasize on cleaner energy sources, which further curtail demand for coal. Coal prices are currently heading for a decade-low with January 2016 coal futures now at USD $52.55 per metric ton on the ICE Futures Exchange.

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  • Coal Industry Update Indonesia: Export, Production & Domestic Demand

    Coal Industry Update Indonesia: Export, Production & Domestic Demand

    Indonesian coal exports are expected to fall below 300 million tons in 2016 as domestic miners are cutting coal production volumes due to low coal prices. Indonesia’s October benchmark thermal coal reference price (set by the government) fell 1.4 percent (m/m) to USD $57.39 per metric ton (FOB) and now stands at an all-time record low since the start of this reference price in January 2009. Meanwhile, global benchmark coal prices are nearly touching nine-year lows.

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  • Indonesia’s Reference Thermal Coal Price Hits All-time Low in September

    Indonesia’s Reference Thermal Coal Price Hits All-time Low in September

    Indonesia’s October benchmark thermal coal reference price (Harga Batubara Acuan, or HBA) was set at USD $57.39 per metric ton (FOB) by the Indonesian Ministry of Energy and Mineral Resources, down 1.4 percent (m/m) from the preceding month and down 14.7 percent (y/y) from the same month last year. The October coal price is now at an all-time record low since the start of the government’s reference price in January 2009.

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  • Coal Mining Industry Indonesia: Harum Energy Looking for Cheap Assets

    Coal Mining Industry Indonesia: Harum Energy Looking for Cheap Assets

    Harum Energy, one of Indonesia’s leading coal mining companies, aims to take advantage of the current weak state of the mining sector by acquiring other coal companies. President Director Ray Antonio Gunara said that Harum Energy, which is part of the Tanito Harum Group, set aside USD $390 million (USD $190 million from internal cash reserves and USD $200 million through a loan) to purchase other coal miners.

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  • Coal Update Indonesia: Price, Environment, Health & Batang Plant

    Coal Update Indonesia: Price, Environment, Health & Batang Plant

    Indonesia’s reference thermal coal price hit another all-time low. The Ministry of Energy and Mineral Resources set the September coal price (in Indonesian: Harga Batubara Acuan, or HBA) at USD $58.21 per metric ton (FOB), down 1.6 percent from the August reference rate, and the fifth consecutive month of decline. Indonesia is the world’s largest thermal coal exporter.

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  • Coal Mining Industry Indonesia: Government in Search of Unpaid Bills

    Coal Mining Industry Indonesia: Government in Search of Unpaid Bills

    Starting from the fourth quarter of 2015 Indonesian governors will have the power to revoke mining permits when miners - those operating with a Mining Business Permit (IUP) - fail to meet requirements for the so-called “clean-and-clear” status. The clean-and-clear status shows that the mining company has no outstanding royalty and other tax obligation, fulfilled exploration and environmental commitments, has no property delineation issues, and obtained the necessary forestry permits.

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  • Indonesia Investments' Newsletter of 16 August 2015 Released

    Indonesia Investments' Newsletter of 16 August 2015 Released

    On 16 August 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 and political subjects such as the cabinet reshuffle, the 2016 State Budget draft, the current account balance, an analysis of the recent performance of the rupiah and Indonesian stocks, the coal industry, and more.

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  • 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.

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Latest Columns Coal

  • 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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  • Indonesian Companies in Focus: Astra International Facing Challenges

    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?

    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

    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 Down 15.4% to 263 Million 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

    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

    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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  • Indonesia’s Reference Coal Price Hits All-Time Low in May 2015

    Indonesia’s Reference Coal Price Hits All-Time Low in May 2015

    On Monday (11/05), it was announced that the reference coal price of Indonesia declined 5.2 percent (month-on-month) to an all-time low of USD $61.08 per metric ton in May. This benchmark price, which is set by the government each month based on the average of four coal indexes (Indonesia Coal Index, Platts Index, New Castle Export Index and New Castle Global Coal Index), continued to plummet due to the coal oversupply in combination with weak global coal demand (particularly falling demand from China).

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  • Coal Mining Industry Indonesia: Higher Royalties for IUP-Holders

    Coal Mining Industry Indonesia: Higher Royalties for IUP-Holders

    The government of Indonesia plans to raise royalties for coal mining companies that hold a Mining Business Permit (Izin Usaha Pertambangan, abbreviated IUP) by revising Government Regulation No. 9 - 2012 on Tariff and Types of Non-Tax Revenue in a move to generate more state income. R. Sukhyar, Director General for Coal and Mineral Resources at the Indonesian Ministry of Energy and Mineral Resources, said that the domestic coal industry remains a vital source of state income, particularly amid diminished mineral exports.

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  • WUP, WPR and WPN Mining Areas in Indonesia

    WUP, WPR and WPN Mining Areas in Indonesia

    Mining Effort Area (Wilayah Usaha Pertambangan or 'WUP'), Community Mining Area (Wilayah Pertambangan Rakyat or 'WPR') and Country Reserves Area (Wilayah Pencadangan Negara or 'WPN') are determined based on the Mining Area (Wilayah Pertambangan). The WUP and WPN is determined by the Minister of Energy and Mineral Resources (Minister). The WPR is determined by the regent/major. The determination shall be based on mapping of the geological and rock formation carrier data and/or mapping of the geophysical and geochemical data and estimates of the resource reserves.

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