Coro leaves Mako gas field
British energy producer Coro Energy Plc., through its subsidiary Coro Energy Duyung Pte. Ltd., has inked a deal to divest its interest in a natural gas field in the West Natuna Sea.
More investments in agriculture
During President Prabowo Subianto’s official visit to Abu Dhabi, Indonesia and the United Arab Emirates (UAE) have strengthened their strategic partnership with the signing of eight bilateral cooperation agreements, spanning a wide range of sectors from energy transition and food security to security, trade, and cultural and religious cooperation.
Trump on coal
Other than pausing tariffs for some countries, which led to recovery in both equity and commodities markets, US President Donald Trump issued an executive order to revitalise the country’s coal industry. While some share doubts about its success this time around, the decision contributed to downfall of thermal coal price.
Those continue investing in renewable
Trump’s sweeping tariffs and China’s counter measures might slowdown energy transition program worldwide. Downfall of fossil fuel is seen a disincentive for renewable energy. Some investors, however, continue to invest in renewable energy projects in Southeast Asia.
Coal, how low will you go? (2)
Newcastle thermal coal dropped 2.4% to US$97 per ton last Friday (Apr 4) to tracking other commodities. Even before Trump’s sweeping tariffs, the commodity, which is the largest export for Indonesia, has fallen significantly on weaker demand and robust supply.
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.
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.
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 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.
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.