Noble Group’s Restructuring & Indonesian Operations
The troubled commodities trader continued to restructure its businesses, including those in Indonesia. On Wednesday, the company announced the divestment of its shares in PT Kaltim Bio Energi (KBE) for US$1 to Wadash Enterprises Pte Ltd.
Expecting More from Palm Oil Derivatives
Full implementation of mandatory biodiesel 20% (B20) in all diesel fuel distributed in the country boosts domestic consumption to around 5 million kilo liter this year. Business association predicts domestic consumption of palm oil would grow to 13.09 million tons or about 27.6% of the estimated total sales of palm oil.
Strong EVs & Indonesia’s Nickel
Some major automakers do not believe that electric vehicles (EVs) will ever equal the prices of equivalent conventional cars. They continue to believe that EVs will always be more costly than gas-burners. Others, however, see a dramatic transformation in the automotive industry, which is supported by strong sales data from two of the world’s major market: the United States of America (USA) and China.
Commodities & Inflation
Ten years ago, entering 2009 election, Indonesia recorded high inflation rate of 11.06%. That time, rupiah was Rp10,950 per USD. Rupiah has fallen to Rp15,180 per USD this time around, but inflation rate is below 3%. Why?
Commodities and Rupiah
The strongest rupiah (Rp9,000 per USD) was in 2011 when WTI crude oil was traded around US$110 per barrel. The weakest, is at the moment (Rp15,180/USD) when WTI crude oil is traded only around US$75 per barrel. Why?
Commodities & Equities
WTI crude inched up to US$75.6 per barrel Wednesday morning in the US to represent 51.05% gain year-on-year. Naphtha, product of oil refineries, which is main feedstock for olefin producers like Chandra Asri Petrochemical (TPIA), meanwhile, jumped 7% to US$724 per ton on Monday to reflect 45% gain year-on-year.
Bayan & Kangaroo Acquisition
Loss-making company Kangaroo Resources Ltd (KRL.AX), which has coal assets in Indonesia, has gained 500% since April 2018 following tender offer for all the shares by Bayan Resources (BYAN)—-largest shareholder. At the last quoted price, KRL had market capitalization of A$419 million.
Freeport Divestment: What’s Next?
INALUM, holding company for state miners, has signed a binding agreement to acquire Rio Tinto’s entire interest in the Grasberg mine of PT Freeport Indonesia for US$3.5 billion last week. Completion of the whole transaction, however, is expected to occur in the first half of 2019, subject to a number of conditions precedent being satisfied.
Walk the Talk: Dairi Zinc/Lead Smelter
After years of talk, and almost one decade of control by Bakrie Group’s Bumi Resources Minerals (BRMS), we might eventually see construction of lead/zinc smelter of PT Dairi Prima Mineral (DPM) in North Sumatra province. BRMS informed market participants late last week that terms and conditions of the divestment of shares in DPM to Chia Non-Ferrous Metal Industry’s Foreign Engineering and Construction Co Ltd (NFC) had been met by both parties.
In GOLD They Trust
Gold declined 0.08% to US$1202.82 per ounce this morning (Sep. 26), but recovered from its lowest at US$1,163 in mid August this year. Year to date, gold has fallen 7.6% from US$1,302. It peaked at US$1,362 on Jan. 26. Spot gold edged up 0.1% to US$1,200.08 an ounce.