New Mineral Regulations: On Freeport & Amman Mineral
Shares of Freeport McMoRan ended sharply lower by 3.8% in New York last night even when copper advanced 2.5% as market responded new regulations on minerals in Indonesia. Perception about supply side boosted copper because export of copper concentrates from Indonesia is affected.
New Regulation on Nickel & Bauxite: Implications?
Minister of energy and mineral resources Ignasius Jonan has issued Regulation No. 5/2017 allowing export of low-grade nickel (below 1.7% Ni) and bauxite ores. Nickel price fell 3% immediately on London Metal Exchange (LME) to respond the policy, which might benefit some in the short-term, but compromising mid and long-term prospect of domestic smelter investments.
Reliance Acquires WOM Finance, Next?
Pretty much as predicted PT Bank Maybank Indonesia Tbk (BNII) has recently signed agreement with PT Reliance Capital Management for the divestment of Maybank’s 68.55% shares in consumer financing firm PT WOM Finance Tbk (WOMF).
Indonesia as Retirement Haven?
International Living has just released its 2017 Annual Global Retirement Index, placing Mexico the best place to retire. Malaysia remained in the Top 10, but out of Top 5. Thailand out of Top 10, but joined two other Southeast Asian countries—-the Philippines and Vietnam—-in the Top 24. Indonesia is not in the list.
Oil & Gas Journal
Crude oil rose 2.87% to US$52.32 per barrel on Wednesday (Jan 11) on reports of Saudi supply cuts to Asia. U.S. crude was trading 3 cents firmer at $52.28, having climbed nearly 3 percent overnight, Reuters reported. Brent crude had ended $1.46 higher at $55.10 a barrel.
Merger & Acquisition Updates
Agritrade Resources Ltd, Indonesian coal producer listed on the Stock Exchange of Hong Kong, has completed acquisition of a very large crude carrier (VLCC) grade vessel on Wednesday (Jan 11). Keppel Corporation, meanwhile, decided to sell its all of its shares in PT Sentral Tunjungan Perkasa to a local food and beverage giant.
Property Players to Watch: IMB Group
IMB Property is one of the fastest growing property players in eastern part of Indonesia. Established in Makassar, South Sulawesi province back in 1994, IMB Property has since developed residential and hotels in Makassar, Kendari (Southeast Sulawesi), and Kalimantan Island.
Aditya Birla Goes Upstream Here
On January 10, 2017 Chief Operating Officer South East Asia and China Units Aditya Birla Group met Minister of Industry Airlangga Hartarto in Jakarta. This visit seems to be a follow-up of President Joko “Jokowi” Widodo’s visit to India last month, when he also met Indian business leaders, including CEO of Aditya Birla Group. The group has completed expansion of viscose staple fiber (VSF) last year, and now looking for upstream business.
Coordinating Minister Luhut on Export of Semi-Processed Mineral
Many are waiting for the Government’s decision on their policy regarding export of semi-processed mineral. As it stands, the Government is ready to apply relaxation to the export ban for copper only. But this is not yet a final decision. The Government still has to promulgate a Government Regulation for the matter, but given the urgency this has to be done by today. Yesterday afternoon, we briefly spoke to the Coordinating Minister of Maritime Affairs Luhut Binsar Panjaitan and asked about the Government’s latest position on this issue. The following is what Luhut said:
CPO & Paper: Declining Export
Indonesia exported 25.7 million tons of crude palm oil (CPO) in full-year 2016, a 1.9% year-on-year (y/y), declined from 26.2 million tons of CPO shipments in the preceding year, according to the data supplied by the Indonesian Oil Palm Estate Fund (BPDP-KS). In terms of value, however, Indonesia’s CPO exports actually surged 8% (y/y) to US$17.8 billion in 2016. Indonesia is the world’s largest exporter and producer of palm oil, followed by Malaysia. The rebound in CPO prices, coupled with the diversification of CPO products (creative industry) would boost CPO export this year.