Unlike most plantation companies listed on Indonesia Stock Exchange (IDX), Bumitama Agri Ltd, a company listed on SGX, reported net profit of Rp1.04 trillion in the first nine months of 2018, an increase of 7.5% from the corresponding period last year. This company was benefited from significantly higher output to offset downfall of crude palm oil (CPO) prices.

How many times you heard about projects to produce dimethyl ether (DME) from coal in Indonesia? None is materialized by far, while consumption of liquefied petroleum gas (LPG) as a household cooking fuel increases steadily. So, while the previous administration succeeded in encouraging households to stop using kerosene and converting to LPG, the cost of subsidizing and importing LPG continue to burden the economy.

Mining giant Eramet (France) acquired Weda Bay nickel deposit, one of the largest untapped in the world, back in 2006. Along with Mitsubishi Corp and Aneka Tambang (ANTM), Eramet initially planned to invest over US$5 billion in the project, which is located in Halmahera, North Maluku province. Mitsubishi left the project few years later, but then Chinese group Tsingshan, leading stainless steel producer, entered into the scene. After more than 12 years of waiting, we finally see the light. 

In contrast to Bayan Resources (BYAN) and Bukit Asam (PTBA), which have gained 85% and 74% respectively year-to-date, Indika Energy (INDY) lost 25%. It is better than Bumi Resources (BUMI), which lost 38%, but worse than Adaro Energy (ADRO) and Harum Energy (HRUM), despite improvement in operations and financials.

Bakrie Sumatra Plantations (UNSP) actually posted decent gross profit margin in the first nine months of 2018, but bottom line was hit by huge forex losses and higher finance costs. Sawit Sumbermas, meanwhile, suffered from substantial increase in finance costs related to the recently issued US$300 million 7.5% Global Notes. How about Tunas Baru Lampung, Sampoerna Agro, and London Sumatra Plantation?

Bauxite miner Cita Mineral Investindo (CITA) booked Rp556.85 billion of net profit in the first nine months of 2018 against loss of Rp102 billion in the corresponding period last year. That means CITA, controlled by Harita Group, recorded Rp246 billion of net profit in third quarter alone. 

Unlike Bayan Resources (BYAN), coal mining giant Adaro Energy (ADRO) reported 16% decline in net profit to US$312.71 million in the first nine months of 2018. Adaro’s operations improved significantly in third quarter with sales revenue growth of 18.8% and operating profit growth of 23.6%, but weighed by loss from its interest in Kestrel Coal.

Some investors stay away from plantation stocks because of weak price of crude palm oil (CPO) in the past few months. Contracts for most part of 2019 were also settled way below this year’s average in the same period, weighed mostly by strong harvest of soybean, trade wars between USA and China, and high stock in Indonesia and Malaysia.