Positive sign from Anambas block
Indonesia clearly needs to revitalize its oil and gas industry to reduce the huge trade defict. In the first quarter of 2025, oil and gas trade deficit reached US$4.84 billion, down from US$5.1 billion in the corresponding period of 2024, but mainly due to lower average prices.
Solar power update
Vanda RE Pte Ltd, formed by Gurin Energy Pte Ltd and Gentari International Renewables Pte Ltd, has recently signed a major framework supply agreement with LONGi Green Energy Technology Co Ltd, a top-tier solar technology company. Under the agreement, LONGi will supply up to 1 GW solar PV modules, deploying in Vanda RE’s utility scale solar and storage project in Riau Islands.
Pressures on coal
Data from two of China’s largest coal miners suggested more pressures on Indonesian thermal coal, which already suffered 12% decline in export volume in the first four months of the year. Higher domestic production might lead to further reduction in the country’s import.
The untouchable nickel player Sambaki Tambang Sentosa
A peaceful demonstration in Maba Tengah, East Halmahera Regency, North Maluku on April 28, 2025 ended abruptly as armed forces repeatedly fired tear gas to the crowd without warning. The protesters, who were dominated by women and children from the Wayamli and Buli indigenous communities, demanded local authorities to revoke the mining permits for PT Sambaki Tambang Sentosa (STS) that allegedly seized their land.
Renewable energy update
Indonesia is set to begin the construction of three solar power plants with combined capacity of 242 MWp as part of the government’s efforts to reduce reliance on fossil fuels and develop sustainable energy sources in the country. The Government through state-owned electricity firm PLN is working on the floating solar power plants, including Saguling floating solar power plant with a capacity of 92 MWp in West Java province, Karangkates floating solar power plant with 100 MW of capacity in East Java province, and Singkarak floating solar power plant in West Sumatra with a capacity of 50 MW.
Economy in the first quarter: Mining (nickel)
Indonesian nickel miners reported strong year-on-year financial performance in the first quarter amidst downfall of prices, but mainly attributable to last year’s delay in approval of work and budget plan (RKAB). Those didn’t experience such delay came out with deeper corrections in margins.
Economy in the first quarter: Mining (coal)
Pretty much as predicted, Indonesian coal miners mostly suffered from substantial decline in profitability in the first quarter of 2025 due to falling price of thermal coal and squeezed margins. Some even reported more than 90% drop in net profit.
Supply continues to weigh on nickel
Nickel opened slightly lower to US$15,580 per ton this morning, representing 18.7% decline year-on-year, as more new smelters entering commercial operation in Indonesia this year. One smelter, which will produce 72,000 tons of nickel metal per annum will commencing production in two months time.
Nuclear Power: Talk the Talk
Bahlil Lahadalia, Minister of Energy and Mineral Resources has stated that Indonesia will start to utilize nuclear power plant by 2030 as laid out in the 2025-2034 Electricity Supply Business Plan (RUPTL). According to Bahlil, nuclear power plants are new, cheap energy sources, and can be used to strengthen the national electricity system. In addition, the use of nuclear will also reduce the use of fossil fuel-based electricity.
Oil & Gas Journal
The government through the Ministry of Energy and Mineral Resources has proposed an increase of crude oil and liquefied petroleum gas (LPG) import from the United States by around US$10 billion, as part of tariff negotiations. If this is agreed, Indonesia will source nearly one-third of its import from USA, which could affect the country’s relationship with other countries.