JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:
OPEC, Russia Oill Supply Cuts Delayed to June 2018
Six ministers from OPEC and non-OPEC oil producers including Saudi Arabia and Russia meet in Vienna on Wed. 29 to review recommendations by their delegates. On Tuesday, a joint OPEC and non-OPEC committee recommended extending cuts until the end of 2018 with an option of reviewing the arrangement at the next OPEC meeting in June. With oil prices rallying above $60 per barrel, Russia has questioned the wisdom of extending existing cuts of 1.8 million barrels per day (bpd) until the end of next year as such a move could prompt a spike in U.S. production. Russia needs much lower oil prices to balance its budget than OPEC’s leader Saudi Arabia, which is preparing a stock market listing for national energy champion Saudi Aramco next year and would hence benefit from pricier crude.
Ngurah Rai Airport Reopened
The Indonesian Transport Ministry on Wed. 29 decided to resume the operation of International Ngurah Rai airport in Bali island after three-day closure as flight alert triggered by volcano eruption has been lowered one level from the highest, an official said. The airport serves over 200,000 foreign holiday makers visiting the resort island every month, according to the Statistics bureau.
Indonesia Expects Freeport’s Deal Conclude in February
Indonesia expects to conclude a deal with U.S’s miner Freeport-McMoRan Inc. by Feb. 2018. The basic structure of the deal may be in place by the end of the year and signed by February, State-Owned Enterprises Minister Rini Soemarno said reported by Bloomberg. Under the deal, state ownership will rise to 51 percent in exchange for a license that will allow Freeport to operate the project through 2041. Under Freeport’s pact with Indonesia, Grasberg will see an investment of as much as US$20 billion through 2031 to further develop the mine, including the construction of a smelter. At present, Freeport directly owns 81.28 per cent of PT Freeport Indonesia and has an additional 9.36 per cent indirect stake through a unit.
North Korea Balistic Missile Fires Close to Japan
North Korea fired what appeared to be an intercontinental ballistic missile that landed close to Japan, officials said. The test, Pyongyang’s first since mid-September, came a week after U.S. President Donald Trump put North Korea back on a U.S. list of countries it says support terrorism, allowing it to impose more sanctions. North Korea has conducted dozens of ballistic missile tests under its leader, Kim Jong Un, in defiance of international sanctions. Trump has vowed not to let North Korea develop nuclear missiles that can hit the mainland United States.
Danish, Indonesia Cooperates Develop Renewable Energy
Minister of Energy and Mineral Resources Ignatius Jonan and Danish Prime Minister Lars Løkke Rasmussen agreed to develop renewable energy in Indonesia. Jonan said, Indonesia is committed to the energy mix of New and Renewable Energy by 23 per cent by 2025. Indonesia has just started three projects for wind energy, two in South Sulawesi and one in South Kalimantan. After the meeting of Jonan and Rasmussen, the signing of a Memorandum of Understanding “Economic Modeling of Load Dispatch” between PT Perusahaan Listrik Negara and Danish Energy Agency of the Danish Embassy. On Tuesday (28/11), the President of the Republic of Indonesia Joko Widodo has held a bilateral meeting with Rasmussen and has signed the Plan of Action 2017-2020 for closer cooperation. In the energy sector, Indonesia and Denmark will work together on developing energy projects, such as large-scale renewable energy projects and through Danish investments in Indonesia.