JAKARTA (TheInsiderStories) – Good Morning. We provide several important news items that might help your business decisions today, as follows:
Demand for Indonesia’s CPO trending up
The demand for Indonesia’s crude palm oil (CPO) from a number of export destinations shows an upward trend , the Indonesian Federation of Palm Oil Producers (GAPKI) said. The association said demand for CPO increased 26 percent from Middle East, 9 per cent from Pakistan and European Union 1 percent in September. The demand came as a surprise given mounting campaign against Indonesian palm oil industry, accusing the palm oil industry to have damaged the pristine forests. Overall, CPO export from Indonesia still shows positive trade, totaling 2.76 million tonnes in the month, excluding exports of biodiesel and oleo-chemical. In September, average price of CPO stood at US$687.60-US$760 per metric tons and average price of US$724.9 per metric tons. The average price of CPO increased 7% in September from US$676 per metric tons in previous month, the association said.
Indonesia daily oil production still below target
Indonesia’s average daily oil production reached 785,764 barrels per day (bpd) on Nov. 10. On annual based, the average production reached 803,065 bpd, which is still below 815,000 bpd, the Energy and Mineral Resources Ministry (ESDM) data shows at the weekend. Realized gas production reached 8,115 million standard cubic feet per day (MMSCFD) on Nov 10, while monthly average gas production reached 7,809 MMSCFD and annual average gas production stood at 7,615 MMSCFD, higher than target set in the State Budget at 6,403.12 bpd.
The Indonesian monthly average oil production was at US$51.88 bpd, higher than State Budget assumption of US$46 bpd, while average ICP on annual base stood at US$49.53 bpd.
United Tractors to Invest $50m in Gold Mine
Heavy equipment producer United Tractors has set aside $50 million for investment in a processing plant and new infrastructure on a gold mine in Sumbawa, West Nusa Tenggara, United Tractors Chief Financial Officer Iwan Hadiantoro said on Thursday. The company is seeking to diversify business and reduce its dependence on coal in the long run. United Tractors acquired a 75.5 per cent stake in Sumbawa Jutaraya, a gold mining company with 10 hectares of concession area, for $2.57 million in 2015.
Indonesia Auto Sales Rebound in October
Indonesia’s Automotive producers sold 94,461 units in October, compared with 92,139 in the same period last year or up 2.5 per cent year-on-year, driven by rising demand for commercial vehicles, the Association of Indonesian Automotive Industries, or Gaikindo, revealed. The sales figure is also 7.7 percent higher, compared with September’s 87,645 units. However, demand for passenger vehicles has yet to improve, making industry players to be less optimistic that producers can meet Gaikindo’s sales target of 1.1 million cars this year. Auto sales in the first 10 months reached 898,218 units, up 2.6 per cent from the same period last year.
Dextin Steel to commence carbon steel production in 2020
PT Dexin Steel Indonesia, a joint venture between China Delong Holdings, a subsidiary of Delong Steel Singapore Projects, and Indonesian partner PT Indonesia Morowali Industrial Park and Shanghai Decent Investment Group, expects to start carbon steel production in 2020. Hamid Mina, Managing Director of PT Indonesia Morowali Industrial Park (IMIP), was quoted by Bisnis Indonesia as saying that at present the company is finalizing the environmental assessment and other administration requirements. The construction is set to start in January next year and expected to be completed within 24 months.