Commodities

Shares of Harum Energy (HRUM), a coal producer expanding aggressively into nickel business in the past five years, ended slightly lower by 0.41% to Rp1,220 on Wednesday (Jul 10) to make a market capitalisation of Rp16.5 trillion, way below equity (Rp21.7 trillion by March 31, 2024).

Tradingeconomics.com reported WTI crude futures fell by 0.8% to close at $83.16 per barrel on Friday last week (July 5), as the growing likelihood of a Gaza ceasefire overshadowed robust summer fuel demand and potential supply disruptions from hurricanes in the Gulf of Mexico. 

Malaysian palm oil futures increased 5.69% year on year (y/y), trading at MYR4104 per ton on Wednesday (July 3), while concerns over weak exports grew, particularly after cargo surveyors’ data surveyor Intertek Testing Services and AmSpec Agri reported shipments of Malaysian palm oil products for June declined between 11.8% to 15.4% from the prior month, Tradingeconomics.com reported. 

Carbon Capture and Storage (CCS) will be crucial in assisting society to achieve net-zero emissions, providing a means to reduce emissions from sectors that are challenging to decarbonize. Consequently, the availability of storage is an important factor for the successful deployment of CCS and Carbon Capture Utilization and Storage (CCUS) projects.  Study was carried out to finalize one of the technologies supporting decarbonization. Indonesia has the ambition to become a CCS Hub in the Southeast Asia region.

Tradingeconomics.com reported that Newcastle coal futures fell towards the US$130 per ton level on Tuesday (June 25), marking a new ten-week low due to weak demand from major buyers. Coal price has rebounded from its lowest in February 21, 2024, rising 5.1% year to date (ytd). Supply-demand balance, especially in China, remains an issue to watch in the coming months. 

Eramet (France) announced on Monday (June 24) that the company and BASF (Germany) have decided against a joint investment in a nickel-cobalt refining complex (an HPAL smelter) in Weda Bay, Halmahera, North Maluku province. This adds to the country’s failure to attract Tesla, a leading name in the EV industry.

The Government through the Coordinating Ministry of Maritime Affairs and Investment emphasized Indonesia’s potential as a leader in hydrogen and ammonia producers in the region. The country is considered to be having a competitive advantage in clean hydrogen production which can bring significant economic benefits.

ThorCon Group, a nuclear reactor company from United States (US) is reported to soon build a nuclear fuel factory in Indonesia. The Company is at the forefront of realizing the first nuclear power plant project in Indonesia in the next three years. The reason is that ThorCon has so far received full support from the Indonesian National Energy Council (DEN).

Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the government is encouraging PT Freeport Indonesia (PTFI) to build a smelter in Timika, Central Papua, close to the Freeport mine. This request is in line with the government’s plan to increase the number of Indonesian shares in PTFI from current 51% to 61% by 2041 (a new regulation has been issued, i.e. requiring additional 10% divestment to get extension of mining contract).

Shares of renewable energy company Barito Renewables (BREN) ended at Rp11,250 on Friday (May 24) to make a market capitalization of Rp1,505 trillion, the largest on Indonesia Stock Exchange (IDX). It is also the most expensive stock with valuation 150 times equity and nearly 30 times the value of Pertamina Geothermal (PGEO), a bigger and more profitable geothermal player.