Coal Journal No 31/2015: Mining Closures
Unlike peers, shares of Adaro Energy (ADRO) and Bukit Asam (PTBA) dropped significantly by 5.65% and 4.26% respectively Tuesday (July 14). Bumi Resources, the largest coal producer in Indonesia, meanwhile, touched its all time low at Rp51 before cutting its losses to 1.85% only.
Palm Oil Journal No. 40/2015: Output to Watch!
The benchmark September 2015 contracts of crude palm oil (CPO) advanced slightly closer to RM2200 per ton Friday (July 10) on recovery of commodities. Going forward, investors should watch closely production of CPO in Indonesia and Malaysia amidst stronger sign of El Nino.
Coal Shares: Oversold?
Adaro Energy (ADRO), the second largest coal producer in Indonesia, ended lower by 3.82% Thursday (July 9), off its new low since early 2009. Indo Tambangraya Megah (ITMG) and Bukit Asam (PTBA) also ended further down to their new lows since early 2009. Have these shares been oversold?
Industrialisation Drive & Pending Gas Projects
Should President Joko ‘Jokowi’ Widodo serious with his ‘new growth engine’ program in processing industry, the government should address immediately issues blocking the development of major gas fields in the country as future source of feedstock and energy.
Jokowi & The New Growth Engine
President Joko ‘Jokowi’ Widodo said in an economic speech before business leaders and economists today that Indonesia is in the hunt for new growth engine as commodities, which helped the economy for almost one decade, lost grounds.
PLN & Lease Back of Chinese-made Power Plants
We have heard few months ago a plan from PT Perusahaan Listrik Negara (PLN) to return 35 power plants built with Chinese money and technology to their contractors and lease them back. Implementation of the program awaits legal opinion from Attorney General’s Office (AGO).
Oil & Gas Journal: Where is the Bottom?
Every time crude oil dropped more than 5%, some revisit the idea of US$40 per barrel or even lower. If you remember, the lowest price of crude is US$43 per barrel (WTI crude). In a relatively short period of time, the commodity rallied by more than 40% to reach US$60 per barrel. In the past few days, crude retreated closer to US$50 per barrel, which once again triggered many to ask, where is the bottom?
Palm Oil: Investment Continues
The benchmark September 2015 contracts of crude palm oil (CPO) lost almost 3% on Bursa Malaysia Derivatives Wednesday (July 8) to respond substantial correction in crude oil and soybean oil. Still, some continue their investments in the industry as acquisition opportunities grow significantly.
Palm Oil: El Nino & Oil Swoon
The benchmark September contracts of crude palm oil (CPO) lost further by 1% to RM2210 per ton on Bursa Malaysia Derivatives Tuesday despite a slight recovery of WTI crude oil in European trading. Two major factors to watch are El Nino and movements in crude oil.
Tax Amnesty, Bakrie Group & Sinarmas Group
We have talked extensively about discrepancies between claims from the Government and Bumi Resources (BUMI) regarding tax and royalties. Even if US$728 million unpaid coal royalties would be set off with prepaid and tax claims from BUMI, there is a big gap of over US$400 million at this Company alone.