Commodities & Indonesian Economy 2018
Commodities ended mostly lower grounds Monday (Feb 5) to tracking equity market. Australia’s All Ordinaries, significantly affected by movement of commodities, opened lower by 2.8% this morning to tracking Dow Jones Industrial Average (DJIA), which collapsed 4.6% last...
Mitsui Wins AWE Ltd, Next?
Mitsui Co Ltd, a company with total assets of US$104 billion, has finally won the race to acquire ASX-listed AWE Ltd, which has 50% interest in the Ande Ande Lumut project in Natuna Sea, Indonesia. Mitsui informed ASX this morning that it has entered into a takeover bid implementation deed with AWE Ltd.
Domestic Pressures on Coal
Thermal coal fell to US$98 per ton in the international market Wednesday (Jan 31), but strong average price in the past seven months or so might force President Joko ‘Jokowi’ Widodo to support policy initiative favouring state-owned eletricity provider PT Perusahaan Listrik Negara (PLN).
Palm Oil Expansions
Ample stock and higher output contributed to correction of crude palm oil (CPO) prices in the past few months. Some expect the current price will be stable for most part of the first half of this year, relying on demand from India and Asia, while others anticipate further short term correction. One or two companies might decide to sell plantation assets, while others continue expanding processing capacities.
Revisiting Bakrie-Mitsubishi at Kangean Block
Shares of Energi Mega Persada (ENRG), an oil and gas company controlled by Bakrie Family, jumped 7.64% Wednesday (Jan 31). At the last quoted price, ENRG had market capitalization of Rp1.04 trillion or around US$78.2 million only. ENRG is co-owner of Kangean production sharing contract (PSC), which hosts Terang field, one of the largest gas producing fields in the country.
Indonesia’s Future in Nickel
Like bauxite, Indonesia used to be the largest supplier of nickel ores for China. That was before mineral ore export ban implemented in early 2014. China then sourced nickel ores, amidst lower nickel content, from the Philippines, which were responsible for 83% of the country’s import last year (35.03 million tons). The government of Indonesia resumed export of low-grade nickel ores early last year, just when more Chinese companies building smelters in Sulawesi and North Maluku.
Indonesia’s Future in Aluminium
Indonesia used to be the largest supplier of bauxite ore for China. That was before mineral ore export ban implemented in early 2014. China then sourced bauxite ores from Guinea and Australia, which were responsible for 77% of the country’s import last year (68.55 million tons). The government of Indonesia resumed export of washed bauxite early last year, just when more Chinese aluminium giants actually planned to develop smelters in the archipelago.
Resumption of Mineral Ore Export Benefits Antam, but…
State miner Aneka Tambang (ANTM) has yet to release its financials for full year 2017, but operational data, combined with improvement in the prices of nickel, gold, and bauxite suggested substantial improvement in the fourth quarter.
Targeting Gosowong Gold Mine
Gosowong gold mine in Halmahera Island, North Maluku province, is one of the largest in the country. Co-owned by ASX-listed Newcrest Mining Ltd and IDX-listed Aneka Tambang (ANTM) through PT Nusa Halmahera Minerals, future of the gold mine depends on negotiations with the government.
Mitsui Heats Up Energy Acquisitions, Natuna/SCS Race
Shares of Australian Worldwide Exploration (AWE) Ltd, an oil and gas exploration and production company, surged more than 15% on ASX this morning following an offer from Japanese company Mitsui Co Ltd to acquire 100% shares. At the last quoted price, A$0.98 per share, AWE had market capitalization of A$614 million.