Oil futures fell as much as 30% Monday morning in Asian trading following Saudi Arabia’s decision to boost crude output and cutting prices by US$6 to US$8 per barrel by April. The decision is made in response to the collapse of OPEC deal with Russia to cut production amidst falling demand due to the Coronavirus outbreak. So, the outbreak has basically triggered the oil war.

State coal miner Bukit Asam (PTBA) booked net profit of Rp4.06 trillion last year, dropped 19.27% from 2018 due to squeezed margins. Sales revenues actually inched up to Rp21.8 trillion, but operating profit declined by 19.4% to Rp5.01 trillion.

Reports about substantial drop of new cases of Coronavirus Covid-19 and hopes of more production cuts by OPEC+ lifted oil prices in Asian trading this morning. WTI crude, for example, gained 3.3% to US$46.3, while Brent advanced 1.62% to US$51.3per barrel.

Large coal producers, such as PT Adaro Energy, PT Bumi Resources, and PT Bayan Resources can breathe easier because the Omnibus Law for Job Creation would free them from royalty. Though the new rule would also apply to other mineral mining companies, the royalties imposed on coal mining companies are quite high––that’s 13.5 percent for PKP2B holders and 7 percent for IUP holders. 

Most metals, including nickel, are now under pressure from the Coronavirus outbreak. Indonesia, however, will continue to become a more significant player in the nickel-to-stainless steel and EV battery. Some new capacities will enter commercial operation this year, especially those in Halmahera, North Maluku province.

The Ministry of Trade requires all export of coal to use Indonesian vessels. The new rule came with a revision of Minister of Trade Regulation (Permendag) No. 82 Year 2017 on the Use of Sea Transportation and National Insurance for Export and Import of Certain Goods. The regulation was a part of the Economic Policy XV meant to strengthen the competitive edge of Indonesia’s logistics services. The 2017 regulation has been amended twice with Permendag No. 48 Year 2018 and Permendag No. 80 Year 2018. The last amendment noted the implementation of national insurance beginning on Feb 1, 2019, with the mandatory use of national vessel coming to force on May 1, 2020. 

Draft of Omnibus Law on Job Creation is designed to amend or abolish some articles in the Law No. 39/2014 about plantation, creating friendlier environment for the business community. It addresses land title, plantation schedule, launching of new varieties of plants, foreign ownership, and plasma plantation scheme.

So, draft of Omnibus Law for Job Creation has been formally submitted to the House of Representatives (DPR) on Wednesday (Feb 12). The 1028-page draft covers various sectors of the economy, including energy and mineral resources. What’s in there?

Unknown company PT Indotan Halmahera Bangkit has few weeks ago signed an agreement with ASX-listed Newcrest Mining Ltd to acquire 100% shares of Newcrest Singapore Holdings Pte Ltd, which owns a 75% interest in PT Nusa Halmahera Minerals/NHM—-operator of the Gosowong gold mine in North Maluku province—-for $90 million.

The Attorney General’s Office claimed last week that it has seized one of strategic assets of PT Trada Alam Minera Tbk (TRAM) related to investigation into the scandalous investments of state life insurance firm Jiwasraya. In this case, stock broker Heru Hidayat, who was chairman of Trada, has been named suspect alongside Benny Tjokrosaputro.