Survival of the Fittest: Palm Oil (3)
Shares of plantation companies listed on Indonesia Stock Exchange (IDX) ended mostly higher grounds Wednesday (Aug 8) to respond positive movement in the crude palm oil (CPO) derivative market. Astra Agro Lestari (AALI) and London Sumatra Plantations (LSIP), two of the most established CPO producers, gained 5.1% and 8.8% respectively.
Survival of the Fittest: Palm Oil (2)
The benchmark October 2018 contracts of crude palm oil (CPO) opened lower by RM6 to RM2229 per ton on the Bursa Malaysia Derivatives this morning, suggesting difficulties of the commodity to continue the rally. Significant correction of soybeans, leading to lower prices of soybean oil, weighed the recovery.
Survival of the Fittest: Palm Oil (1)
Crude palm oil (CPO) may have left its recent low, but the commodity’s benchmark contract for October 2018 was only RM2235 per ton on the Bursa Malaysia Derivatives yesterday. That price will make life more difficult for palm oil producers, especially those relied heavily on external funding for planting activities in the past few years.
Equity Policy in Action: Artesian Well (3)
Minister of energy and mineral resources Ignasius Jonan inaugurated the operation of nine artesian wells in Jambi province on Monday (Aug 6) with 18.2 liter per second, enough to serve 8,736 people. This is part of the government’s equity policy in action to address limited access to clean water in the country. A total of 1,878 artesian wells serving 5.4 million people have been built since 2015.
Coal Journal: DMO Capping & Valuation
Bayan Resources (BYAN) predicted EBITDA of US$400 million in the first half of 2018, suggesting around 20% quarter-on-quarter increase in the second quarter. This might prompt the government to maintain its capping of thermal coal price for domestic market obligation (DMO) volume.
Resource Nationalism: Rokan Block (3)
President Joko ‘Jokowi’ Widodo, through his Facebook account Thursday (Aug 2) morning, praised a decision from ministry of energy and mineral resources to give state oil and gas company Pertamina the right to operate Rokan, the largest oil producing block in Indonesia. This effectively ends Chevron’s 50 years of control in the block, which once produced 900,000 barrels per day, one of the largest blocks in the world.
The Chaotic DMO Policy & Financials of Coal Miners
Just days after a cabinet meeting reportedly reviewed a plan to revoke capping of coal price for domestic market obligation (DMO), which would be replaced by export tax, the second cabinet meeting led by President Joko ‘Jokowi’ Widodo on Tuesday (July 31) decided to maintain the policy.
Resource Nationalism: Rokan Block (2)
One thing is clear. The government’s decision to give Rokan Block to Pertamina will boost the state oil and gas company’s profile in the region. Few years ago, Pertamina was responsible to less than 20% of the country’s oil and gas production. By early this year, Pertamina’s portion increased to 36% with the start of its control over Mahakam Offshore, the largest gas producing block in the country.
Resource Nationalism: Rokan Block (1)
The government claimed that it has assigned state oil and gas company Pertamina to manage the giant Rokan Block in Riau province, which is now managed by Chevron until 2021. The announcement was made by vice minister of energy and mineral resources Arcandra Tahar just hours after state-owned enterprises minister Rini Soemarno expressed her optimism about Pertamina’s proposal vis-a-vis Chevron’s.
A Stronger Second Quarter for Antam
Shares of Aneka Tambang (ANTM) ended lower by 4.2% Tuesday (Jul 31) on broad market sentiment and short-term profit taking after two weeks of rally. The Company is set to report significantly stronger performance in the second quarter, thanks to higher volume and prices of nickel.