Indonesia continues to attract major investments in nickel processing. Anticipating the boom of electric vehicles (EVs), more companies have established joint ventures for the development of nickel smelters with high-pressure acid leach (HPAL) technology, which extracts nickel and cobalt from laterite ore bodies. 

Pressures on thermal coal continued despite a recovery of 0.52% to US$88.68 per ton Monday (March 25). Some anticipate further rally in the second quarter, but shared doubts about possible return to above US$115 per ton like in the third quarter of 2018. Interestingly, coal production from two of the largest mining contractors in the country increased significantly in the first two months of 2019.

Responding to downfall of crude palm oil (CPO), among others due to Europe’s campaign against the commodity and competition from soybean oil, President Joko ‘Jokowi’ Widodo encouraged some to grow tropical fruit Durian instead. As usual, the opposition immediately criticized Jokowi for the plan. Jokowi, however, might have the point. 

Mining contractor PT Delta Dunia Makmur (DOID) Tbk booked net profit of US$75.64 million last year, jumped by 61.7% from 2017 even though its gross profit margin weakened significantly to 24% from 29.4% in the previous year. 

Shares of gold miner PT J Resources Asia Pasifik (PSAB) Tbk gained 5.64% to Rp206 Tuesday (March 19) to make a market capitalization of Rp5.45 trillion, slightly above its equity by December 31, 2018. The Company has just released its 2018 financial report with net profit of US$15.29 million, increased slightly from US$14.45 million in 2017. 

Mitrabahtera Adiperdana (MBAP) booked net profit of US$50.3 million last year, down from US$58.64 million in 2017 on squeezed operating margins. The Company’s sales revenues were flat at US$258.14 million, while operating profit dropped 14.2% to US$67.37 million. Still, Mitrabara is among the most profitable coal miners listed on Indonesia Stock Exchange (IDX). 

AKR Corporindo (AKRA), the largest distributor of fuel in the private sector, booked profit attributable to owner of Rp1.64 trillion in 2018, grew 22.7% from Rp1.34 trillion in 2017. Sales and revenues rose 28.7% to Rp23.55 trillion from previous Rp18.29 trillion.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reporter that per February 2018, the lifting of oil and gas reached 1.8 million barrels oil equivalent per day (boepd). Oil lifting reached 735,000 barrels per day (bpd), and gas lifting was 1.07 million boepd. The production of gas is expected to improve in quarters ahead along with the completion of some projects.

Following the collapse of commodities in 2018, crude palm oil (CPO) rallied to its peak of US$1,324 per ton in February 2011. Since then, the commodity has never returned to above US$1,200. In fact, CPO steadily dropped to US$500 in August 2015. The key export commodity for Indonesia recovered to US$821 in January 2017 only to touch its new low of US$440/ton last November. 

The troubled commodities trader continued to restructure its businesses, including those in Indonesia. Among the most affected is Noble Group’s plantation operations in the country. Today, two subsidiaries in Indonesia announced acquisition of 100% shares by third party investors.