Kepodang Gas Field in Muriah Block, offshore Central-East Java, is expected to supply natural gas for Tambak Lorok gas-fired power plant in Central Java after state-owned company PT Perusahaan Gas Negara (PGAS) Tbk injected significant fund into the long-delayed pipeline project won by Bakrie Group. The future of the block, however, continues to become target of wild speculations.

The Government of Indonesia has set the coal reference price (HBA) for January 2015 at US$63.84 per ton, down slightly by 1.3% from December 2014, but represented a 22% fall from January 2014.

Business process of major exporters of commodities (palm oil, coal, oil & gas, and minerals) might be significantly affected by implementation of mandatory letter of credit (L/C) in April 2015. This policy, however, might help Tax Office in curbing transfer pricing, which might have been committed by those selling products to affiliated offshore entities.

Volatility remains very high in coal sector. Bumi Resources, the largest coal producer in Indonesia, regained 10.8% today after losing the same percentage on Wednesday. Adaro Energy, second largest producer, lost 1%, while Indo Tambangraya gained 1.34%. Elsewhere in the region, BHP Billiton lost 1.1%, while China Coal Energy inched up 0.44%.

UK-based Premier Oil Plc produced 14,400 barrels of oil equivalent per day in Indonesia last year, an increase of 5.1% from 2013. Salamander Energy Ltd, another UK-listed company, meanwhile, is getting closer to operate Kerendan Gas Processing Facility.

Nevada-based company Vanguard Mining Corporation has engaged PT Yudha Bhakti Menggala, an Indonesian logistic company, as an exclusive partner for logistics and sea transportation to handle shipment of construction sand, reclamation sand, and other construction aggregates for the Singaporean construction market. Who’s behind Yudha Bhakti Menggala?

So, Nymex crude oil fell 5% to its new low at US$45.76 per barrel, reportedly on supply issue. It dragged down other commodities. Copper fell to US$2.76 per pound, while soybean oil retreated. Shares of oil and gas giants like ExxonMobil and Chevron also lost ground.

Unlike crude oil, crude palm oil (CPO) gained significantly in the past few trading days on higher prices of soybean oil and lower output of CPO last month in Indonesia and Malaysia. The benchmark March 2015 contracts of CPO gained significantly by RM39 to RM2369 per ton on Bursa Malaysia Derivatives Thursday (Jan 8).