Indo Tambangraya Megah (ITMG) generated net profit of US$261.95 million from sales revenue of US$2 billion last year to represent net profit margin of 13%. Golden Energy and Resources (GEAR) Ltd, meanwhile, reported net profit margin of less than 4% last year. Looks like that low calorie coal producers will remain under substantial margin pressures this year. Weak prices have even forced some to report net loss in the fourth quarter of 2018.

Thermal coal retreated to US$94.78 per ton this week to represent nearly 8% fall year-on-year, mainly due to slowdown of the global economy and uncertainties surrounding US-China trade negotiations. But, while Indonesian coal miners were busy trying to expand their export market, the country’s import increased significantly in the past two years.

The benchmark May 2019 contracts of crude palm oil (CPO) ended substantially lower by RM51 to RM2,132 per ton Wednesday (Feb 27). Spot prices fell 3.13% to make a year-on-year loss of 25.3%. Natural rubber has gained 3.45% year-on-year, but sugar is still 4.4% below the same period last year. 

The benchmark May 2019 contracts of crude palm oil (CPO) fell 2% on the Bursa Malaysia Derivatives Monday (Feb 25) on anticipated weaker demand and strengthening of Malaysian Ringgit. The government of Indonesia, meanwhile, has yet to make final decision on a plan to charge export tax on CPO next month, pending thorough review of market dynamics. 

Nickel returned to US$12,925 per ton on Friday (Feb 22) in London Metal Exchange (LME). More nickel giants came up with their estimation that primary nickel demand significantly exeeded supply, thanks, among others, to the fast growing electric vehicle (EV) market. Glencore, for example, predicted cumulative deficit of well above 400,000 tons in the past three years despite growing output of nickel pig iron (NPI) in Indonesia.

The benchmark May 2019 contracts of crude palm oil (CPO) declined to RM2,241 per ton Wednesday (Feb 20) as the concern on the oversupply in India and stronger Malaysia Ringgit over the dollar pushed CPO prices down.

Chevron Corp might have been disappointed with the government’s decision to terminate its contract for Rokan Block, currently second largest oil producing block behind ExxonMobil’s Cepu Block, but the company continues to show its commitment to develop the multi billion dollar Indonesia Deepwater Development (IDD) project in the Makassar Strait.

Shares of Kirana Megatara, one of the largest natural rubber processing companies in Indonesia, declined 0.56% to Rp358 per share on Wednesday (Feb 13), but gaining 34.6% so far this year. Investors were confident with this stock as the Company expanded its business

The Ministry of Energy and Mineral Resources (ESDM) reported that two oil and gas working fields (Lampung III and Muralim coal bed methane) had converted their production sharing contracts (PSC) to a gross split scheme. So far, 39 working fields or blocks have adopted the gross split scheme, consisting of exploration blocks (14), extension or transferred blocks (21), and amended contracts (4 blocks).

The benchmark April 2019 contracts of crude palm oil (CPO) gained more than 1% to RM2,335 per ton Thursday (Feb 7), still below the same period last year, but the commodity has gained significantly from its bottom. Improved implementation of mandatory biodiesel in Indonesia might have helped the recovery, but is considered not enough.