The Indonesian government plans to allow an earlier submission of a request for the extension of mining concessions. Stakeholders say that this would considerably strengthen the investment climate in Indonesia's mining sector, specifically the coal mining industry, on the back of improved legal certainty.
Update COVID-19 in Indonesia: 24,538 confirmed infections, 1,496 deaths (28 May 2020)
29 May 2020 (closed)
USD/IDR (14,769) +8.00 +0.05%
EUR/IDR (16,275) +95.18 +0.59%
Jakarta Composite Index (4,753.61) +37.43 +0.79%
Below is a list with tagged columns and company profiles.
Today's Headlines Mining
In the first three quarters of 2018, Indonesia's total national coal production reached 319.08 million tons, or nearly 63 percent of the government's full-year 2018 target (set at 506.9 million tons), according to the latest data from the Energy and Mineral Resources Ministry.
The Indonesian government took another major step forward in becoming the majority stakeholder (through state-owned mining holding company Indonesia Asahan Aluminium, or Inalum) of mining giant Freeport Indonesia that operates the lucrative Grasberg mine in Papua.
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.
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.
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.
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.
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.
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.
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.
Latest Columns Mining
The positive response of Asian stock markets towards manufacture data from Europe, and the rebound of American and European stocks turned the Indonesia Stock Exchange (IHSG) back into green territory. Positive market sentiments impacted - as usual - on commodity stocks, particularly mining stocks, and which thus gained the most: Vale Indonesia (INCO), Antam (ANTM), Timah (TINS), and Resource Alam Indonesia (KKGI) all increased significantly.
Associated businesses Mining
- Ancora Indonesia Resources
- Aneka Tambang (Antam)
- Anugerah Kagum Karya Utama
- Astra International
- Atlas Resources
- Bumi Resources
- Bumi Resources Minerals
- Cakra Mineral
- Central Omega Resources
- Cita Mineral Investindo