State oil and gas company Pertamina booked net profit of US$660 million in the first half of 2019, surged from US$311 million in the corresponding period last year, thanks to lower costs. The company took in smaller replacement of subsidy costs from the government in the period, a subject of criticism ahead of this year’s presidential election.

Brent crude oil was traded at US$58.96 per barrel in Asian trading this morning, representing 22.76% correction year-on-year. Some companies, however, continue to invest in Indonesia. A consortium of Italian giant ENI and state oil and gas company Pertamina, for example, has recently declared winner of the tender for West Ganal block.

Thermal coal inched up 0.07% to US$67.3 per ton last Friday (Aug 23), but the last quoted price represented 37% fall year-on-year. Global economic slowdown hurts the prospect of coal in export market, but domestic market of the commodity is set to grow faster in the coming years from power generation, mineral processing (especially bauxite, nickel, and cement), and the drive to add value for low-calorie coal.

While most coal miners reported a profit decline for the first half (H1) of 2019, The second-largest coal producer Adaro Energy (ADRO) posted a profit growth. The Company focused on maintaining healthy margins and continued to be disciplined with its costs.

State miner Aneka Tambang (ANTM) reported unaudited net sales of Rp14.43 trillion for the first half (H1) of 2019, a 22% growth year on year (y/y). Its gold sales, the main contributor, grew 14% to 15,741 kilograms (kg), compared to 13,760 kilograms in H1 last year. Gold contributed Rp9.61 trillion sales or 67% of total ANTM’s sales in the said period. The higher average price of gold and nickel could also support the company’s financials in the third quarter.

Some believe that there is little downside from the current low-price environment because of possible bumpy ride in soybeans. Most, however, expect crude palm oil (CPO) prices to remain subdued in the second half of the year and for most part of next year.

Coal transporter PT Transcoal Pacific Tbk (TCPI) ended higher by 5.22% to Rp7,050 Monday (Aug 19) to make a market capitalization of Rp35 trillion, bigger than second largest coal group Adaro Energy (ADRO), which was worth Rp33.4 trillion. Transcoal gained 100% since April 2019 when coal prices lost steam. Seriously?

Thermal coal inched up 0.66% to US$68.5 per ton Monday (Aug 19), but this represents nearly 36% fall year-on-year. Persistent trade tensions and signs of slowdown in the global economy contributed to the correction. This will have significant implications to Indonesian economy, including the State Budget 2019.

LME nickel ended higher at US$16,080 per ton last Friday, the highest level in five years, amidst concern about supply of nickel ores from Indonesia. In the meantime, more players announced plans to build nickel smelters in the country. The latest is a plan from China’s largest nickel pig iron (NPI).