Papua province suffered 15.72% decline of its economy in 2019. In the third quarter of 2020, Papua economy contracted by 2.61% year-on-year, but improved 6.09% from the previous quarter. The economy is expected to report stronger growth in the fourth quarter 2020 onwards. In general, two provinces in Papua—-Papua and Papua Barat—-will likely see stronger economic growth this year, which will support the national economic recovery. 

The hype on nickel and electric vehicle lifted shares of Aneka Tambang (ANTM) and Vale Indonesia (INCO) by 17% and 14% respectively on Monday (Feb 1). ANTM, which has production capacity less than half of Vale Indonesia, is now worth Rp62.5 trillion, slightly higher than Vale. ANTM is now worth more than twice of profitable coal miner Bukit Asam (PTBA), and way bigger than Adaro Energy (ADRO).

After more than two years without statement on the planned US$2 billion high-pressure acid leaching (HPAL) project in Pomalaa, Southeast Sulawesi province, Sumitomo Metal Mining (SMM) Ltd informed shareholders late last month that ‘we are currently ascertaining the schedule moving forward’.

PT Energi Mega Persada Tbk (ENRG), an oil and gas arm of Bakrie Group, has entered into an affiliated party transaction to acquire 25% interest in Energi Mega Pratama Inc, which indirectly has interest in Kangean block (East Java), for US$43.5 million consideration. ENRG acquires the shares from Kinross International Group Ltd, a BVI-registered company owned by Bakrie Family. 

Hours after he was sworn in, President Joe Biden announced the US plans to reenter the Paris climate accord, CNN reported. Under the accord, as you know, countries are expected to boost their commitments in curbing greenhouse gas emissions, which would lead to faster development of electric vehicle market and renewable energy projects. 

Nickel settled at US$18,075 per ton in London Metal Exchange (LME) Tuesday (Jan 19), the highest level seen since September 2019 amidst growing demand for electric vehicle in Europe and tighter supply. As main host of nickel resources, Indonesia continues to attract new investors entering the sector. 

Indonesia’s decision to phasing out kerosene use and replace it with liquefied petroleum gas (LPG) last decade succeeded in cutting down State subsidies for kerosene which reached Rp48.2 trillion (US$5 billion that time) to nearly zero last year. Subsidy for LPG, however, increased dramatically from Rp5.6 trillion in 2008 to around Rp38 trillion set aside in the State Budget 2021. 

Crude palm oil (CPO) was settled at US$1,090 per ton (CIF) in Rotterdam last Wednesday, the highest level seen since May 2012. At this price, the government might collect more than US$250 per ton of CPO exported in the form of export duty and export levy. The country is predicted to export up to 37 million tons of CPO and derivatives (including oleochemicals and biodiesel) this year. 

Crude palm oil (CPO) surged to US$1,050 per ton (CIF) in Rotterdam on Monday (Jan 4), a level not seen since July 2012, due to a decline in supply amid strong La Nina weather pattern and reports about shortage of migrant workers (mainly Indonesians) on Malaysia’s plantations. Robust demand from China and lower import duty in India also contributed to the rally in CPO price.