Economy in the first quarter: Mining (coal)
Pretty much as predicted, Indonesian coal miners mostly suffered from substantial decline in profitability in the first quarter of 2025 due to falling price of thermal coal and squeezed margins. Some even reported more than 90% drop in net profit.
Supply continues to weigh on nickel
Nickel opened slightly lower to US$15,580 per ton this morning, representing 18.7% decline year-on-year, as more new smelters entering commercial operation in Indonesia this year. One smelter, which will produce 72,000 tons of nickel metal per annum will commencing production in two months time.
Nuclear Power: Talk the Talk
Bahlil Lahadalia, Minister of Energy and Mineral Resources has stated that Indonesia will start to utilize nuclear power plant by 2030 as laid out in the 2025-2034 Electricity Supply Business Plan (RUPTL). According to Bahlil, nuclear power plants are new, cheap energy sources, and can be used to strengthen the national electricity system. In addition, the use of nuclear will also reduce the use of fossil fuel-based electricity.
Oil & Gas Journal
The government through the Ministry of Energy and Mineral Resources has proposed an increase of crude oil and liquefied petroleum gas (LPG) import from the United States by around US$10 billion, as part of tariff negotiations. If this is agreed, Indonesia will source nearly one-third of its import from USA, which could affect the country’s relationship with other countries.
Coro leaves Mako gas field
British energy producer Coro Energy Plc., through its subsidiary Coro Energy Duyung Pte. Ltd., has inked a deal to divest its interest in a natural gas field in the West Natuna Sea.
More investments in agriculture
During President Prabowo Subianto’s official visit to Abu Dhabi, Indonesia and the United Arab Emirates (UAE) have strengthened their strategic partnership with the signing of eight bilateral cooperation agreements, spanning a wide range of sectors from energy transition and food security to security, trade, and cultural and religious cooperation.
Trump on coal
Other than pausing tariffs for some countries, which led to recovery in both equity and commodities markets, US President Donald Trump issued an executive order to revitalise the country’s coal industry. While some share doubts about its success this time around, the decision contributed to downfall of thermal coal price.
Those continue investing in renewable
Trump’s sweeping tariffs and China’s counter measures might slowdown energy transition program worldwide. Downfall of fossil fuel is seen a disincentive for renewable energy. Some investors, however, continue to invest in renewable energy projects in Southeast Asia.
Coal, how low will you go? (2)
Newcastle thermal coal dropped 2.4% to US$97 per ton last Friday (Apr 4) to tracking other commodities. Even before Trump’s sweeping tariffs, the commodity, which is the largest export for Indonesia, has fallen significantly on weaker demand and robust supply.
Why royalty on bauxite/alumina should rise
Cita Mineral (CITA), the largest bauxite ore miner in Indonesia, which is co-owned by Harita Group (a diversified business group controlled by Lim Haryanto family) and Glencore Plc (one of the world’s largest mining companies), has just published its full year 2024 financial results.