Indonesia






Oil & Gas Refining

Chandra Asri receives $750 million in funding from KKR for the purchase of Exxon's Singapore petrol stations

Chandra Asri Pacific, based in Indonesia, announced on Monday that it had secured a bespoke financing package of $750 million from investment firm KKR for its purchase of ExxonMobil’s Esso retail fuel station network. The Indonesian conglomerate announced late October that it would retain the Esso brand, continue to source fuel from ExxonMobil and integrate its existing workforce. Chandra Asri has not disclosed financial details about the transaction until now. The deal includes almost 60 fuel stations and associated supply agreements. KKR Capital Markets will arrange the financing solution, which is anchored on KKR’s private credit and Insurance platforms. SJ...



Energy Markets

Environment

Climate Change

Researchers say that climate change is a major factor in the deadly November Asian storms.

Scientists said that the storms which devastated Sri Lanka in late November, Indonesia, Malaysia, and Thailand were'supercharged' by increased sea temperatures, and made worse by rapid forest destruction, according to a new study. Tropical Cyclone Senyar, which formed in the Malacca Strait and devastated Southeast Asia, killed nearly 1,200 people, 969 of whom were on Sumatra, an island in Indonesia. For the damages to be repaired, at least $3 billion is needed in relief funds. Sri Lanka has been hit by flooding and landslides due to Tropical Cyclone Ditwah. The death toll is over?600, and the economic losses are estimated...

Environment

Orangutans in danger as Indonesia floods destroy habitat

Amran Siagian (39), a resident of Sipirok in North Sumatra province, met Tapanuli Orangutans frequently on a hill. Siagian who has been working at the Orangutan Center (OIC), as a ranger, to protect this endangered animal for at least five year, recalls that the orangutans loved eating durians and other fruits grown in the surrounding area. Orangutans have disappeared from Sipirok after the landslides. As of Tuesday, 962 people had died from the cyclone-induced flooding and landslides. 291 are still missing. Storms in southern Thailand and Malaysia also claimed the lives of?about 200 other people. "They must have gone further...

Pollution

Indonesia names a Chinese metal company executive as a suspect in contaminated radioactive material case

Indonesian authorities named the director of a scrap-metal company on Thursday as a suspect. They accused the firm of breaking environmental laws regarding storage and disposal. A local company, also located in the Modern Cikande Industrial Estate in Jakarta, detected the caesium-137 contamination in shrimps shipped to the United States by a local firm in August. Indonesia then began conducting sweeping scans in that area. Indonesia's Government has said that PT Peter Metal Technology, a factory owned and operated by foreign investors which ceased operation in July was the epicenter of radioactive contamination. Police said that PT PMT director Lin...

Environment

Sumatra flooding leaves 800 dead, Indonesia vows action against any violations of mining permits

Indonesia will revoke mine permits if it is found that companies have violated the rules in flood-ravaged Sumatra, said the Energy Minister as questions about deforestation's role in the disaster intensified. According to data from the government, cyclone-induced flooding and landslides in West Sumatra have killed 800 people and left 564 others missing. The cyclones have also caused the deaths of almost 200 people across Malaysia and Thailand. They followed months with deadly weather conditions in Southeast Asia including deadly typhoons that hit Vietnam and the Philippines. Landslides in Indonesia have blocked roads and cut off power, making it difficult...

Oil & Gas

Fuel and funds to aid flood-hit Indonesian areas are running low

The authorities battling the floods that hit Sumatra, an island in Indonesia, this week and killed around 800 people have asked for additional central government assistance to address shortages of food, fuel and funds. According to updated government figures, 463 people are missing in West Sumatra (North Sumatra), Aceh and West Sumatra. Local officials say that the lack of power and roads is preventing aid from reaching those who need it. Iskandar Al-Farlaky, the chief of East Aceh, stated that fuel had been limited in East Aceh for days and that aid was delivered by boat. Some people who lived...

Environment

Fuel and funds to aid flood-hit Indonesian areas are running low

The authorities battling the floods that hit Indonesia's Sumatra island this week, which killed 804 people, have asked for more help from the central government to address shortages in funds, fuel and food. Local government officials say that landslides and floods caused by cyclones have led to 634 deaths in the three provinces West Sumatra (North Sumatra), Aceh and West Sumatra. They also claim that power lines and roads were cut, preventing aid from reaching those who needed it. Teuku Raja Keumangan told Kompas TV that "people are getting sick" in Aceh where flooding has affected 25,000 people. Haili Yogi,...

Environment

Indonesian town burys its dead in mass graves as flood toll increases

Families in Indonesia gathered on Friday at a Batang Toru health centre, hoping to hear news of missing loved ones. Locals were digging a mass grave for seven victims who had not been claimed by their families. The cyclonic rains which have ravaged the westernmost island of Sumatra, Indonesia, are believed to be responsible. According to Indonesian disaster agencies, the rains caused flooding and landslides across three provinces on Sumatra Island, killing at least 95 people. Nearly 80,000 have been evacuated, and 80 people remain missing. Residents of Batang Toru, where 21 people have died, lifted seven bodies wrapped in...

Environment

As the number of flood-related deaths in Southeast Asia crosses 180, rescuers are stepping up their recovery efforts.

As the flood waters receded, authorities began coordinating recovery efforts, rescuing stranded residents, restoring power and communications, and rescuing stranded citizens. A rare tropical storm has formed in the Malacca Strait, causing torrential rainfall across large parts of Indonesia and Malaysia. Authorities said that a cyclone killed 46 more people in the island nation of Sri Lanka. According to three Indonesian provincial authorities, by Friday afternoon 94 deaths had been confirmed in the badly affected Sumatra. Search and Rescue personnel were still unable to reach residents in the Padang Pariaman area of Sumatra on Friday, where 22 people had died....

Electric Utilities

Indonesia seizes eight containers of imported zinc powder contaminated by caesium 137

An official announced on Monday that eight containers of imported caesium powder were seized by Indonesia after it was discovered to be contaminated. The country is intensifying its efforts to intercept goods contaminated at the border and within the country. Bara Hasibuan said that the containers were originally from Angola. They are being held in a Jakarta port until the administrative procedures to re-export them have been completed, according to a press release by Bara Hasibuan. Indonesia created a task force to address the issue of radioactive pollution after seafood, cloves, and footwear destined for the United States had levels...

Environment

The international funding has stalled, putting the Indonesian coal phase-out program at risk

The top Indonesian official in charge of the program said that the plan to retire coal-fired plants with a capacity of 6.7 gigawatts by 2030 is likely to fail due to the stalled funding from rich nations. The Just Energy Transition Partnership, a coalition of ten donor countries, promised to raise $20 billion for Indonesia in three to five year by 2022. This was once called the "single largest climate finance transaction." The sum was to include funds to retire coal-fired plants that represented 13.5% of Indonesia's total power capacity. Paul Butarbutar (JeTP Indonesia Secretary) said that no one has...

Environment

At least 18 people have been killed and dozens are missing in Central Java, Indonesia.

Authorities said that at least 18 people have died in landslides caused by rain in Central Java Province, Indonesia, last week. Search operations are ongoing. The disaster mitigation agency reported that a landslide last week in Cilacap buried 12 houses in Cibeunying. It said that the search and rescue effort was difficult because people were buried between 3 to 8 metres (ten to 25 feet). M Abdullah said that the landslide in Cilacap has left at least 16 dead and 7 people missing. KompasTV, a news channel, showed footage on Monday of excavators digging through the dirt in Cilacap. The...

Environment

Indonesia will open up new land for plantations of palm oil, ending the freeze on expansion

A government official announced on Thursday that Indonesia will open 600,000 new hectares for palm oil production to boost stagnant production. This is the first expansion of plantation areas since a four-year moratorium expired. Abdul Roni Angkat, Agriculture Ministry official in Indonesia's resort island Bali, told an industry conference that the move was to increase production of palm oil due to a projected higher demand for food as well as energy independence. Roni stated that the plan will be implemented in four years, and will include 400,000 acres of "plasma" for smallholders. This category is usually composed of smallholder farmers...

Mining

Climate Change

Swiss court admits Indonesian islanders climate claim against Holcim

Parties to the case announced on Monday that a court in Switzerland had decided to accept a legal complaint against Swiss cement manufacturer Holcim, which alleged the company was doing too little to reduce carbon emissions. Four residents from the low-lying Indonesian Island of Pari, whose sea level has been rising due to warmer temperatures, filed a complaint with the cantonal court in Zug, Switzerland, on January 20, 2023. Swiss Church Aid, a non-profit organization that is supporting the Pari 'case, announced the court had accepted the complaint. Holcim acknowledged in a press release that the court had accepted the...

Mining

Indonesia President expects Sumatra floods to return to normal within 2-3 months, as the death toll has exceeded 1,000

Indonesian President Prabowo?Subianto? said on Monday that activities in areas of Sumatra which were affected by deadly 'floods' may return to normal within the next two months. According to official data, the death toll of the floods and landslides caused by the cyclone in Sumatra late last month, which destroyed homes and forced people into emergency centres, has reached 1,030 people as of today, while 206 are still missing. About 200 people were also killed in Malaysia and southern Thailand by the storms. Prabowo said at a cabinet meeting on Monday, that the reconstruction of the three provinces affected was...

Mining

Indonesia fines palm oil and mining companies $2.3billion for operating in forests

A government task force in Indonesia has fined dozens of palm oil companies and mines a total of 38.62 trillion Rupiah (2.31 billion dollars) for illegally operating in forest areas. An official confirmed this on Monday. The forestry taskforce of President Prabowo, which is made up by military personnel and officials from law enforcement, has cracked down this year on a scale that was unprecedented on illegal plantations and mines in forest areas. The task force has seized 3.7 million hectares (9.1million acres) of plantations, and more than 5300 hectares (more than 6,000 acres) of mining operations. Its goal is...

Mineral Resources

Coal

Coal

CNBC Indonesia reported that Indonesia will revise its retention rules for export revenues in the new year.

CNBC Indonesia reported Monday that Indonesia will require all natural resource exporters, starting January 1, to deposit and retain their foreign currency earnings at state-owned banks. The report was based on a government document. According to the new rules, which were introduced in January, exporters are required to keep for a minimum of one year all proceeds from the sale of natural resources such as coal, palm oil, and nickel, within the Indonesian bank system, including private-owned banks. Exporters who are reluctant to convert their proceeds into rupiah can use the money for business purposes if they exchange it. CNBC...

Fossil Fuels

China's October coal imports are down 10% from the same month last year

Customs data released on Friday showed that China's imports of coal in October were down 10% from the previous year, due to a holiday which reduced the number working days during the month. Imports will be supported in 2025 by the winter restocking of products during the last two months. Imports in October fell from 46.25 to 41.74 millions metric tons, a drop of almost ten percent. Imports in September reached 46 million metric tonnes, a record high for nine months. Feng Dongbin is vice-general manager of Fenwei Digital Information Technology. He said that imports decreased sequentially, and also from...

Carbon Emissions

Indonesia resumes international carbon trading after four years

According to a copy seen on Wednesday, Indonesian President Prabowo Subianto has issued a decree to resume international carbon trading after a hiatus of four years. In 2021, the Southeast Asian country published carbon market regulations that focused more on compliance than voluntary markets. The regulation effectively ended all trading of carbon credits across borders, even those generated by large projects such as the Katingan Mentaya Conservation Project. Indonesia claimed that the moratorium allows the country to prioritise meeting its own greenhouse-gas reduction targets instead of selling the reductions abroad. The suspension was also a result of concerns that carbon...

Power Markets

China's coal imports in September rose to a nine-month high

Customs data released on Monday showed that China's imports of coal rose to their highest level in nine months, as domestic coal prices increased, making imported coal more affordable. However, shipments were still below the levels seen a year ago. China's General Administration of Customs reported that the country imported 46 million metric tonnes of coal last month. The decline in prices on the international market was responsible for the lower total of last month compared to September, when it was a record high. This record was broken in November. September 2024 is now the second highest month ever. The...

Coal

Sources say that Danantara Indonesia’s $3 billion ‘Patriot’ bonds issue has been oversubscribed

Two sources familiar with the matter on Tuesday said that the sovereign wealth fund Danantara Indonesia has received more commitments for its "Patriot Bond" offering than the 50 trillion rupiah (3 billion dollars) target. The bonds were sold to companies in five- and seven-year tranches at a rate of 2%. This is lower than the 10-year government bond yield, which is around 6%. They will help finance Indonesia's energy programs, including waste-to-energy. One source said that the launch of the bond was originally scheduled for October 1, but it will be delayed. She did not give any details but stated...

Coal

Chairman of India's NMDC says that the company is exploring coal assets in Indonesia and Australia.

Amitava Mukherjee, chairman of the Indian miner NMDC, said that it is looking for coking coal assets in Indonesia and Australia. Coking coal is a key ingredient used to make iron ore and styrene. India, which is the second largest producer of crude iron and steel in the world, imports 85% of coking coal. More than half of Australia's coking-coal imports are accounted for by the country. Mukherjee stated that the company views this as an opportunity for business. The negotiations (for explorations) are at different stages. Due to confidentiality, he did not reveal the specifics of these discussions. NMDC,...

Coal

Minister says that the increase in Indonesian mining royalties will take effect shortly

The mining minister announced on Wednesday that an Indonesian regulation will increase the royalties mine companies pay on commodities like coal, nickel and copper as well as gold, tin, and gold. The regulation aims to improve industry governance by increasing royalties for metal products, such as nickel ore and nickel matte, based on prices. The Miners Group has urged the Government to reconsider this hike as they already struggle with increasing operational costs. Minister Bahlil Lahadalia said to reporters, "We are appreciating all the inputs, but we see the greater interest for our nation." He said that the regulation would...

Coal

Indonesia increases royalties for mining companies

The Indonesian mining ministry has said that it is looking at increasing the royalties mine companies pay for commodities such as nickel, copper, and coal. The proposal was made as Indonesia's newly formed government plans to make major budget changes, including the introduction of a free lunch program for schoolchildren. According to a YouTube video of a Saturday public consultation about the proposed changes, the ministry's Tri Winarno stated that the goal is to improve the governance of the industry. Indonesia is rich in natural resources. Mining is one of the major sources of income. The world's largest exporter of...

Fossil Fuels

Indonesia plans to use the sovereign wealth fund to boost coal-gasification projects

Energy Minister Danantara Indonesia said that Indonesia is looking to increase coal gasification through its newly established sovereign wealth fund Danantara Indonesia. Indonesia, which is the world's largest thermal coal producer has been trying to process low-ranking coal into dimethyl ether in order to reduce LPG imports. However, previous projects have failed due to investors pulling out. Energy Minister Bahlil stated late Tuesday that the government will provide the capital investment, and the local investors will cover the rest. "Danantara will be one of them." Bahlil stated that four coal gasification project will be implemented in South Sumatra, East Kalimantan...

Coal

Andy Home: China tightens its grip on global nickel supplies with Anglo's sale

Anglo American’s sale of its Brazilian Nickel business to China’s MMG Ltd. is a win-win for both companies. Anglo delivers on its shareholders' promise to simplify its portfolio, and pockets up to $500m. MMG, a producer of zinc, copper and cobalt, can diversify and grow its geographical footprint by expanding into Brazil. The market for nickel is one of the few that has shown signs of resilience in the face of a glut. It's not good news for western countries that want to escape China's tightening of the global nickel supply chains. China already controls around 75% the refining capacity...

Coal

India's thermal coke imports are down for the second consecutive year

Industry officials have said that India's thermal imports will fall in 2025 for the second consecutive year due to a decreasing reliance on coal as a power source, slowed economic activity, and record-high inventories. The six Indian and foreign coal traders who spoke at the Coaltrans India Conference in New Delhi all expected that shipments would decline this year. Three traders predicted that imports would plummet by about 10%, to 155 million tons. Two traders predicted a drop of 1-2% while the third forecasted a decline of 7-8%. The traders did not want to be named as they weren't authorised...

Coal

China's imports of iron ore, coal and other minerals fell in January but prices varied: Russell

China's iron ore imports and seaborne coal arrivals are expected to be soft in the first quarter, with January arrivals falling to multi-month lows. The price trend for two of the most important bulk commodities is divergent. Iron ore has held steady, while thermal coal has fallen to its lowest level in almost four years. According to Kpler, commodity analysts, China is the largest iron ore purchaser in the world. It will import 99.5 millions metric tons of this key raw material for steel in January. This would be a drop from the official December customs figure, which was 112.5...