Pertamina has reiterated its intention to be more aggressive in acquiring oil and gas assets in the country and overseas to meet the target set by the government to reach production of 1.9 million barrels of oil equivalent per day (boepd) by 2025. The state company has kicked off 2017 with acquisition of more shares in Maurel & Prom, which is listed on Euronext Paris.

Shares of coal producer and plantation company PT Toba Bara Sejahtera Tbk (TOBA) have gained significantly by 89% since October 2016 due to a combination of higher average price of thermal coal and TOBA’s expansion into power generation business. Last week, for example, TOBA’s subsidiary PT Minahasa Cahaya Lestari (MCL) signed power purchase agreement (PPA) with state electricity firm PT Perusahaan Listrik Negara (PLN) regarding 2×50 MW coal-fired power plant project in Minahasa Utara, North Sulawesi province.

Total E&P Indonesie and Inpex Corporation yet to make decision about their future in Mahakam Offshore Block, whose production sharing contract (PSC) expires Dec 31, 2017. They’re expected to make final decision to take or not 30% participating interest offered by Pertamina after yesterday’s meeting at energy & mineral resources ministry.

Our preliminary data pointed to significantly higher production of crude palm oil (CPO) in Malausia and Indonesia last month, which would continue to weigh prices. Combined with higher average price of input costs, margins of plantation companies might be under substantial pressures in the second half of the year.

Indonesia Stock Exchange (IDX) might brace for more equities from gold-copper miners. J Resources Asia Pacific (PSAB) is offering up to 20.13 billion new shares and US$300 million 5-Year Notes. Four other gold-copper mines are expected to enter the capital market in the coming years.

Thermal coal retreated 1.4% to US$88.5 per ton Thursday (Apr 6), but still representing 69% gain year-on-year, lifted by supply side concerns from the tropical Cyclone Debbie and rally in crude oil market. Indonesian government, meanwhile, sets reference price of US$82.51 per ton for April 2017, an increase of 57.7% from the corresponding month of 2016.

Crude palm oil (CPO) continues to volatile, but Belgian company SIPEF has aggressively expanded its operations in Indonesia through acquisition of oil palm plantations. After spending US$144 million for the acquisition of additional 47.71% shares in PT Agro Muko, the Company has signed heads of agreement to acquire another plantation firm for US$53.1 million last month.

Shares of Medco Energy (MEDC) opened lower by 2.8% this morning as some realized gains. Still, MEDC is among the best performing stocks with 164% gain year-to-date. At the last quoted price, Medco has market cap of Rp11.63 trillion, about the same with its equity as at Dec 31, 2016, way below market average.