Why royalty on bauxite/alumina should rise
Cita Mineral (CITA), the largest bauxite ore miner in Indonesia, which is co-owned by Harita Group (a diversified business group controlled by Lim Haryanto family) and Glencore Plc (one of the world’s largest mining companies), has just published its full year 2024 financial results.
Higher royalty for minerals and coal (2)
Looks likely that the government will implement a higher royalty for minerals (including coal) soon following a limited cabinet meeting led by President Prabowo Subianto. Amidst pressures on the revenue side of the State Budget due to downfall of tax collections, raising non-tax collections is the only available option.
Financial struggles of natural rubber players
Shares of Kirana Megatara (KMTR), one of the largest processors of natural rubber, were traded flat at Rp328 on Tuesday (Mar 11) despite strong financial performance in 2024 and relatively stable price in international market.
Squeezed margins of nickel miners (1): Ifishdeco
Shares of nickel miner Ifishdeco (IFSH) ended lower by 2.5% to Rp770 on Monday (Feb 24) as investors responded to the 2024 financial results and further correction of nickel price in international market.
Why royalty for nickel should rise
So, nickel miners have reportedly sent a letter to President Prabowo Subianto protesting a plan to raise royalty for the commodity. Financial report of Trimegah Bangun Persada (NCKL) or Harita Nickel, however, suggested a substantial increase in royalty would do little to impact profitability.
Coal: How low will you go?
Shares of coal miners listed on the Indonesia Stock Exchange (IDX) mostly lost ground Tuesday (Mar 18) on broad market sentiment and further correction of thermal coal price in international market. The commodity, which is the largest export for Indonesia, lost another 2% to US$98.75 per ton to become the worst performing mineral year-to-date.
Prabowo’s another ambitious project: 1m bpd oil refinery
Last week Energy and mineral resources minister Bahlil Lahadalia talked about the government’s plan to grow domestic oil refining capacity by 500,000 barrels per day. Upon meeting president Prabowo Subianto this week, however, the target has been formally doubled to 1 million barrels per day.
Energy transition update
Prabowo’s brother Hashim Djojohadikusumo has criticized the Just Energy Transition Partnership (JETP), calling it a failure because of the lack of funding for Indonesian renewable energy projects. If we go back to 2022, Indonesia secured US$20 billion funding commitment for energy transition funds through JETP from developed nations and international organizations. However, according to Hashim, the United States has yet to fulfil its commitments.
Higher royalty for coal and minerals
Mining business associations have logged complaints related to the government’s proposal to raise royalty for coal and minerals. Even gold and copper producers, which enjoy high price environment, consider the rise not friendly to investment climate. Really?
Prabowo on Riza Chalid: Piling on the pressure
People in the business are still wondering why a businessman claiming Rp500 billion contribution to the presidential campaign is now target of corruption investigation. We’re talking about oil trader/transporter Riza Chalid, whose son is now a corruption suspect in oil business with state company Pertamina.