Update on 35,000 MW Program
State-owned electricity provider PT Perusahaan Listrik Negara got a boost from the government’s pledge to avoid criminalisation of officers in the handling of 35000 MW program launched by President Jokowi. But, what progresses have been made by PLN in the program so far?
Gas Supply Race at PLN & People Close to Power
After nearly six months of tender, state-owned electricity provider PT Perusahaan Listrik Negara (PLN) has finally completed the pre qualification stage. Eleven groups, including three companies close to people in power, are competing for the supply of gas to small-scale power plants with a combined 2800 MW capacity.
Newmont’s Export Extension Hinges on Smelter
PT Newmont Nusa Tenggara’s (NNT) concentrate export permit extension request is still being reviewed by the Ministry of Energy and Mineral Resources ESDM). The Ministry is determining whether or not NNT’s request has come with all the requested prerequisites fulfilled. NNT’s concentrate export permit will expire on September 18, 2015.
Relaxation of Mineral Ores Export: Who Gets What
Coordinating minister for politics, security, and human rights affairs Luhut B Pandjaitan revealed yesterday the government’s plan to allow companies already started construction of smelters to export mineral ores. Who will be benefited and threatened from the relaxation?
Domestic Stories for Coal
Coal producers may start to expect more from domestic market amidst downfall of import by China. State-owned electricity utility PT Perusahaan Listrik Negara (PLN) confirmed commercial operation of some new power plants with combined capacity of 3688 MW before the end of this year, including coal-fired power plants. Higher coal consumption by cement industry is also anticipated.
Commodities & Shares: Bottoming Out? (5)
Bleak Chinese manufacturing data, Saudi Arabia’s refusal to cut production, and growing inventory in US dragged down crude oil by 10% in New York Tuesday (Sept 1). WTI crude ended at US$44 per barrel, almost wiping out all of gains recorded since Tuesday last week.
Palm Oil: New Biodiesel Claims
The benchmark November contracts of crude palm oil (CPO) advanced by more than 1% to RM2014 per ton on Bursa Malaysia Derivatives Tuesday (Sept 1). In Jakarta’s physical market, KPB Nusantara, the joint marketing office of state plantations, sold five out of seven CPO packages auctioned off that day at Rp6145 per Kg, significantly higher than Monday.
Reality Check on Nickel Smelter Projects
China Nickel Resources Holdings Co Ltd, a company listed on HK Stock Exchange, is victim of Indonesia’s policy to ban export of mineral ores. The Company posted net loss of HK$207.3 million in the first half of 2015, jumped from HK$70.7 million in the same period of 2014. Worse, the Company’s smelter project failed to move as planned.
Commodities & Shares: Bottoming Out? (3)
WTI crude oil advanced 8.8% to settle at US$49.2 per barrel on Nymex last night, while Brent crude jumped 8.2% to close at US$54.15 per barrel. They lifted commodities-related stocks worldwide. Santos and Woodside, for example, opened higher in Sydney this morning. BHP Billiton and Rio Tinto also advanced even when All Ordinaries lost ground.
Laggard Stock: PGAS
PT Perusahaan Gas Negara (PGAS) Tbk is one of few blue chip stocks yet to recover on Indonesia Stock Exchange (IDX). It has only gained 2.2% from its low, and is now traded with PE multiple 10.6 on annualised earnings of first half 2015.