Below is a list with tagged columns and company profiles.

Today's Headlines Mining

  • New Tax Rules in Indonesia to Speed Up Freeport Indonesia Deal

    New Tax Rules in Indonesia to Speed Up Freeport Indonesia Deal

    After the much publicized signing by the Indonesian government and US mining giant Freeport McMoRan of the Heads of Agreement regarding the sale of a stake in Freeport Indonesia (the operator of the lucrative Grasberg mine in Papua) on 12 July 2018, we have not heard much about the deal that is valued at USD $3.85 billion.

    Read more ›

  • H1-2018 Corporate Earnings Reports Indonesia: Astra International

    H1-2018 Corporate Earnings Reports Indonesia: Astra International

    Although Astra International, one of Indonesia's biggest diversified conglomerates, has been affected by subdued car sales in Indonesia in recent years, the company remains comfortably within the top ten of biggest listed companies in terms of market capitalization on the Indonesia Stock Exchange.

    Read more ›

  • Banking Sector Indonesia Still Lacks Confidence in Mining Industry

    Bank Sector Indonesia Still Lacks Confidence in Mining Industry

    Local banks in Indonesia remain hesitant to disburse loans to companies that are engaged in Indonesia's mining sector due to the high degree of bad debt in this sector. Hence, credit disbursement to the country's mining sector continues to shrink. On the one hand, it is positive that Indonesia's banking sector becomes less dependent on the volatile movement of mining commodity prices.

    Read more ›

  • Coal Mining Industry: Price Remains High on Robust Chinese Demand

    Coal Mining Industry: Price Remains High on Robust Chinese Demand

    Coal demand remains high, particularly due to robust demand from China, the world's largest coal importer. This brings the projection for the full-year 2018 coal price to the range of USD $98.50 - $107.00 per metric ton. So far this year the coal price (ICE NewCastle Coal January 2018) surged around 4 percent, while in full-year 2017 the price had surged 57.09 percent.

    Read more ›

  • Earnings & Shares of Indonesian Coal Miners Improve on Rising Price

    Earnings & Shares of Indonesian Coal Miners Improve on Rising Price

    The rising coal price is a great boost for the corporate earnings of coal mining companies as well as the share prices of those companies that are listed on the Indonesia Stock Exchange. Newcastle Coal Futures (January 2018 delivery) touched USD $97.10 per metric ton at the end of last week, up 26 percent so far this year. Meanwhile, prices of energy commodities are expected to rise further in the remainder of the year.

    Read more ›

  • Heavy Equipment Production & Sales on the Rise in Indonesia

    Heavy Equipment Production & Sales on the Rise in Indonesia

    Production and sales of heavy equipment in Indonesia is recovering more markedly in 2017 on the back of rising activity in the country's mining and construction sectors. Between 2012 and 2015 sales of heavy equipment plunged sharply in Indonesia. In 2016 a modest recovery was seen. This year, the recovery of Indonesia's heavy equipment sector is progressing at a faster pace.

    Read more ›

  • Freeport Indonesia & Government Stuck on Divestment Valuation

    Freeport Indonesia & Government Stuck on Divestment Valuation

    Indonesia's Energy and Mineral Resources Ministry stated that it will remain committed to the agreement that was made between Freeport Indonesia and the central government of Indonesia on 29 August 2017. However, although parent company Freeport-McMoran agreed to divest a majority stake in its Indonesian unit (Freeport Indonesia) in those negotiations, the exact divestment valuation is yet to be agreed upon.

    Read more ›

Latest Columns Mining

  • Coal Mining Update: Contract Extension Relaxation, Price Pressures & the Government’s Dilemma

    Coal Mining Update: Contract Extension Relaxation, Price Pressures & the Government’s Dilemma

    By revising Indonesian Government Regulation No. 23/2010, the Indonesian government plans to provide local coal miners more certainty by allowing an earlier submission of a request for the extension of mining concessions. Stakeholders in the mining sector argue that this would considerably strengthen the nation’s investment climate, specifically the coal mining industry, on the back of improved legal certainty.

    Read more ›

  • Freeport McMoRan and Indonesia Reach Agreement on Stake, or Did They?

    Freeport McMoRan and Indonesia Reach Agreement on Stake, or Did They?

    After years of struggle and negotiations there now seems light at the end of the tunnel for the Indonesian government and US mining giant Freeport-McMoRan Inc. Both sides signed a Head of Agreement on Thursday 12 July 2018 that will give Indonesia’s state-owned mining company Indonesia Asahan Aluminum (better known as Inalum) and the local government of Papua a 51.23 percent stake in Freeport Indonesia, implying the company - the operator of the Grasberg mine, which is the world’s largest gold mine and second-largest copper mine – will come under Indonesian control.

    Read more ›

  • Indonesian Mining Companies in Focus: Aneka Tambang (Antam)

    Indonesian Coal Mining Companies in Focus: Aneka Tambang (Antam)

    One of the companies, listed on the Indonesia Stock Exchange, that is experiencing a very good performance so far in 2018 is vertically integrated and diversified mining and metals company Aneka Tambang, a state-controlled entity. Not only did the company's corporate earnings and production figures surged in the first quarter of 2018 on the back of stronger commodity prices (and rising demand), but shares of Aneka Tambang also soared - by a whopping 45.60 percent - up to Friday (22/06).

    Read more ›

  • Indonesian Heavy Equipment Distributors in Focus: Intraco Penta

    Indonesian Heavy Equipment Distributors in Focus: Intraco Penta

    Indonesian heavy equipment distributor Intraco Penta is optimistic that its corporate earnings will improve in 2018 and 2019 on the back of rising coal prices and the so-called "replacement cycle". Ferdinand Dion, Investor Relations Strategist at Intraco Penta, said every five years mining companies tend to replace those heavy equipment units that have been consistently used for the past five years.

    Read more ›

  • Indonesian Heavy Equipment Firms in Focus: United Tractors

    Indonesian Heavy Equipment Firms in Focus: United Tractors

    Sales of United Tractors, the largest distributor of heavy equipment in Indonesia and part of the Astra Group, continue to climb in 2017. In fact, the management of United Tractors now expects full-year 2017 sales to exceed their initial forecast. Sara Loebis, Corporate Secretary of United Tractors, said the company has therefore raised its forecast for full-year heavy equipment unit sales from 3,000 to 3,200 units.

    Read more ›

  • Mining in Indonesia: Concern about High Non-Performing Loan Ratio

    Mining in Indonesia: Concern about High Non-Performing Loan Ratio

    The non-performing loan (NPL) ratio in Indonesia's mining and excavation sector has risen drastically over the past year. Moreover, there seems few room for an improvement of the NPL ratio in this sector on the short term because mining and excavation companies are expected to remain amid tough conditions in the remainder of the year. The NPL ratio is a key indicator for measuring bad loans.

    Read more ›

  • Divestment Procedure for Mining Companies Revised

    Divestment Procedure for Mining Companies Revised

    Recently, the Ministry of Energy and Mineral Resources (Ministry) issued regulation number 9/2017 on Procedures for Divestments and Mechanisms to Determine the Divested Share Price for Business Active in the Minerals and Coal Sector (New Regulation). The New Regulation replaces Ministry regulation number 27/2013. In this column we discuss the impact of the New Regulation on foreign investors in Indonesia.

    Read more ›

  • 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 ›

  • Freeport Indonesia May Resume Exports Soon but Dispute Continues

    Freeport Indonesia May Resume Exports Soon but Dispute Continues

    Reportedly, the government of Indonesia will hand Freeport Indonesia a temporary export permit for copper concentrate shipments, hence being able to bypass (for the moment) Indonesia's controversial ban on mineral ore exports. Freeport Indonesia, the local unit of US mining giant Freeport McMoRan, has been unable to export copper concentrate for the past three months, thus missing out on about USD $1 billion in revenue. Due to the drop in exports, mining activities at the Grasberg mine in Papua fell drastically, giving rise to concern about layoffs.

    Read more ›

  • Protectionism in Indonesia: Falling Role of Commodities in the Economy

    Protectionism in Indonesia: Falling Role of Commodities in the Economy

    An interesting story was released on Bloomberg Markets Asia on Wednesday (29/03) about the sliding role of commodities in the Indonesian economy and the need for Southeast Asia's largest economy to find a new growth engine (or better: several new growth engines) that will take the country to economic growth levels of +7 percent year-on-year (y/y) as once pledged by Indonesian President Joko Widodo during his presidential campaign in 2014.

    Read more ›