Pretty much as predicted, Indonesia gained more from recent dynamics in the commodities market. The country booked trade surplus of US$3.83 billion last month, surged by 92% from February 2021 despite 330% expansion of deficit in oil and gas. The deficit was well covered by 136% surge of trade surplus in non oil and gas to US$5.73 billion.

PT Timah Tbk (TINS), one of the world’s largest tin producers, is among companies reporting strong bottomline last year, thanks to significant profit reported in the fourth quarter of 2021. Yet, TINS is valued less than 2x equity and traded with PE multiple 9 only. 

Shares of Nickel Mines Ltd, a company listed on Australia Stock Exchange (ASX) with nickel smelter projects in Morowali (Central Sulawesi) and Halmahera (North Maluku), ended further down by 1.64% to A$1.2 on Friday (Mar 11). The stock lost 27% its value in the week following reported US$8 billion trading loss hitting Tsingshan Holding Group, its largest shareholder.

Tsingshan Holding Group has been key to Indonesia’s emergence as global supplier of nickel and stainless steel. The group has been involved in so many projects, including nickel-for-EV batteries, in Morowali (Central Sulawesi) and Halmahera (North Maluku), worth more than US$20 billion in the past few years.

Indonesian government’s plan to raise royalties from coal might have contributed to the rebound of thermal coal price in international market. After a brief correction, Newcastle coal futures, which already surged to historic high due to potential supply disruption from the Russia-Ukraine war, regained grounds to US$420.7 per ton on Wednesday (March 9).

Indonesian government will soon implement a plan to impose export tax on nickel and thermal coal, director general of coal and mineral at ministry of energy & mineral resources ministry said. The government wants to benefit from the high price environment for the commodities. Nickel reached an all time record of US$50,300 per ton on Monday, while thermal coal at US$418.8 per ton.

Thermal coal, aluminium, copper, and tin have all hit an all-time high as the Russian economy becoming increasingly more isolated by the sanctions imposed by some western countries. Thermal coal (Newcastle, Australia) advanced further to US$419 per ton on Friday (Mar 4) to represent 377% gain year-on-year as buyers are worried about supply disruption from the world’s third largest exporter.

The Russia-Ukraine war has lifted price of almost all key commodities. Nickel closed at its new high of US$29,130 per ton on Friday (Mar 4) because some market participants were worried about possible supply disruption from Russia, one of the world’s largest producers of nickel.

So, shareholders of Bumi Resources Minerals (BRMS), a company long controlled by Bakrie Group, have appointed Agus Prodjosasmito as new president director. BRMS is parent of PT Gorontalo Minerals and PT Citra Palu Minerals, two companies with gold concessions in Sulawesi Island.