Palm Oil: Moratorium of New Plantations
The benchmark March 2017 contracts of crude palm oil (CPO) advanced RM52 to RM3134 per ton on the Bursa Malaysia Derivatives Wednesday (Jan 11). Falling output in Malaysia might have contributed to the gain. Going forward, plans from Indonesian government to start implementing moratorium for new plantations deserved attention.
Indika Group: Big Things to Watch
Indika Energy (INDY) has gained 560% since early 2016. Still, the company is valued less than half of its equity as at Sept 30, 2016. Going forward, there are some big things to watch from this company and its subsidiaries.
Shenhua’s Grip in Indonesia (3)
Shareholders meeting of China Shenhua Energy Co Ltd, one of the largest integrated energy companies in the world, on December 23, 2016 approved the provision of guarantee to PT Shenhua Guohua Lion Power Indonesia (Lion Power), paving the way for smooth construction of 2×300 MW mine-mouth power plant in Muara Enim, South Sumatra province.
Palm Oil: Output to Watch
Malaysian Palm Oil Board is scheduled to release December data for CPO production and stock Tuesday (Jan 10). Our data from some Malaysian planters suggested lower month-on-month output, but mixed on year-on-year performance.
In GOLD They Trust: Wilton Resources
Gold regained grounds Monday (Jan 9) to US$1,181.75/Oz. The precious metal has retreated significantly from above US$1,360 in July 2016, but didn’t stop some to invest in the sector. Wilton Resources Ltd, a company listed on Singapore Exchange with gold exploration project in Sukabumi Regency, West Java province, for example, has recently raised fresh capital from investors.
Mining Policy & Political Test for Jokowi
Jokowi-Kalla administration starts the new year of 2017 with a major political test. In less than 48 hours, they have to make decision on the crucial and politically sensitive issue. Under the existing laws and regulations, export of semi-processed minerals expires January 11. The government’s decision will not only affecting Freeport Indonesia and Amman Mineral Nusa Tenggara (new name of Newmont Nusa Tenggara). It may define the future of Jokowi’s administration.
Q&A with Apexindo Pratama
Crude oil has been hovering above US$50 per barrel since early December 2016 thanks to OPEC’s decision to cut production. OPEC basket price, which is closer to Indonesian Crude Price, for January 2017 is currently 100% above average price in January 2016. Implications to oil and gas supporting services companies like Apexindo Pratama Duta (APEX)?
Bayan Resources & KEPCO
South Korea’s energy giant KEPCO has completed divestment of 20% shares in PT Bayan Resources Tbk (BYAN) last month. KEPCO sold 666.66 million shares to unidentified buyer at Rp6911 per share or a total consideration of Rp4.6 trillion or US$350 million, way below the price paid to Bayan’s controlling shareholder in 2010.
Coal Journal No. 01/2017
Reference price of Indonesian thermal coal/HBA (calorific value of 6322 Kcal/Kg GAR) for January 2017 is set at US$86.23 per ton, down significantly from US$101.69 in December 2016, but jumped 62% year-on-year. Shares of coal producers listed on Indonesia Stock Exchange (IDX) responded positively.
Delta Dunia (DOID) vs Peers
Shares of Delta Dunia Makmur (DOID), coal mining contractor, gained 3.33% to Rp496 Tuesday (Dec 27) as investors responded positively new contracts signed by DOID subsidiary Bukit Makmur Mandiri Utama (BUMA) with Adaro Indonesia and PT Angsana Jaya Energy (AJE) worth Rp6.5 trillion (US$493 million).