Jakarta, APBI-ICMA: CNBC Indonesia January 28, 2019 reported that the share price of listed coal producers began to be bought by investors even though the price of coal was in the red zone.
Apparently the government's policy of loosening export provisions for a number of commodities is a catalyst for investors to buy these shares.
PT Indika Energi Tbk (INDY) shares rose 9.36%, shares of PT Harum Energy Tbk (HRUM) rose 7.14%, shares of PT Adaro Energy Tbk (ADRO) rose 1.79% and PT Bumi Resources Tbk (BUMI) rose 1.74%.
Last week the Minister of Trade Enggartiasto Lukita issued a policy to facilitate commodity exports. This step was taken to encourage exports.
Enggartiasto said that commodities would be boosted such as coal and oil palm.
"Basically, we make facilities. Everything that can be simplified is simplified, for example minerals, coal, then oil palm," said Enggar after a coordination meeting at the Coordinating Ministry for Economic Affairs, Central Jakarta, Thursday (1/24/2019).
Meanwhile, Newcastle's coal prices at the close of last week's trading (1/25/2019) in the futures market closed down by 0.25% at US $ 98.75 / metric ton.
Over the past week, coal prices have collapsed by 1%, whereas since the beginning of 2019, coal prices have dropped by 0.9%.
Reduced coal demand from China is one of the strong sentiments that suppress coal prices. How not, as a country that controls more than half of world coal consumption, demand from China certainly greatly affects prices.
In addition to the economic slowdown, China's coal demand was also caused by the plan of the Bamboo Curtain country to provide cleaner air.
According to Reuters calculations, in the winter of 2018, as many as 3.29 million households had switched to using gas heaters, which previously used coal.