Indonesia says Tesla strikes $5 billion deal to buy nickel products 

  U.S. carmaker Tesla has signed contracts worth about US$5 billion to buy materials for their
  batteries from nickel processing companies in Indonesia, a senior cabinet minister told CNBC
  Indonesia. 

  Southeast Asia's biggest economy has been trying to get Tesla to set up a production facility in
  the country, which has major nickel reserves. President Joko Widodo met with Tesla founder
  Elon Musk earlier this year to drum up investment. 

  "We are still in constant negotiation with Tesla ... but they have started buying two excellent
  products from Indonesia," Coordinating Minister for Maritime and Investment Affairs Luhut
  Pandjaitan said in an interview broadcast on Monday. 

  He said Tesla signed a five-year contract with nickel processing companies operating out of
  Morowali in Sulawesi island. The nickel materials will be used in Tesla's lithium batteries. 

  Tesla did not immediately respond to a Reuters email seeking comment. 

  Indonesia is keen to develop electric vehicles and batteries industries at home and had stopped
  exports of nickel ore to ensure supply for investors. The move had successfully attracted
  investments from Chinese steel giants and South Korean companies like LG and Hyundai. 

  However, most nickel investment so far have gone to production of crude metal such as nickel
  pig iron and ferronickel. 

  The government plans to impose export tax on these metals to boost revenue while encouraging
  more domestic production of higher-value products, a senior official told Reuters last week. 

  Source: Reuters 

  President Jokowi inaugurates Kijing Terminal in Port of Pontianak 

  President Joko Widodo (Jokowi) inaugurated Kijing Terminal in the Port of Pontianak, West
  Kalimantan. The new seaport is expected to bolster the competitiveness of the province's main
  products. 

 
  "This province has great potential in terms of its crude palm oil, alumina, bauxite, and other
  products. This port has a capacity of 500 thousand TEUs and also eight million for the non-
  container section," he stated during the event, as broadcasted by the Presidential Secretariat's
  YouTube channel, Tuesday. 

  The president lauded that the port terminal will be the largest of its kind in Kalimantan. 

  "This is the largest port in Kalimantan. I earlier urged the president director of PT Pelindo (port
  operator), 'how much budget do we need (for the port)?' (and he answered), 'it is huge as we
  need Rp2.9 trillion (US$194 million)," Jokowi remarked. 

 
  The head of state then urged relevant stakeholders to optimize the Kijing Terminal to enhance
  competitiveness and inter-port, inter-island, and international sea connections.

 
  The president also instructed Public Works and Public Housing Minister Basuki Hadimuljono
  to improve road access to Kijing Terminal. 

 
  "The minister is present now, so he must complete the development to ensure that all container
  and non-container logistics movements are smooth, and our goal to enhance competitiveness
  can be achieved," Jokowi noted. 

  He also sought public input regarding the name of the new terminal. 
 

  "Please propose (the name) to the central government, to the president. We will accept all public
  aspirations," the president remarked. 

  Meanwhile, Transportation Minister Budi Karya Sumadi stated that Kijing Terminal in the Port of
  Pontianak is one of the National Strategic Projects (PSN). 

 
  "The development aims to address the (issue of) Port of Pontianak that has been restricted by
  silting and its location at the city center. Hence, the Kijing Terminal is expected to replace the
  Port of Pontianak and offer more space for industrial growth in West Kalimantan," he
  expounded. 

  Source: Antara 

  Indonesian CPO exports regain momentum amid excessive
  domestic stockpiles 

  Indonesia’s shipments of crude palm oil (CPO) and its derivative products have begun to soar
  again following the halting of an export ban in May, yet the problem of excessive domestic
  stockpiles, which has led to a drop in CPO prices, still cannot be solved.   

  According to Indonesian Palm Oil Business Association (GAPKI) data, CPO exports in June
  reached 2.33 million tonnes, 3.4 times higher than the previous month, following the stopping
  of the export ban on May 23.   

  GAPKI executive director Mukti Sardjono elaborated that the biggest jump in CPO demand by
  the end of the first half of this year came from Pakistan, followed by the European Union,
  China, India and the African region.   

  “CPO exports to Pakistan hit 295,000 tonnes in June up from the previous month’s 281,000
  tonnes. Demands from the EU also rose from 177,800 to 296,700 tonnes, China from 208,500
  to 416,200 tonnes, India from 154,500 to 212,300 tonnes and Africa 156,600 tonnes to
  199,400 tonnes,” he said on Thursday.   

  In the domestic market, meanwhile, CPO consumption increased by 225,000 tonnes month-to-
  month (mtm) to 1.83 million tonnes in June.   

  Mukti said the biggest increase in domestic demand for CPO occurred for biodiesel, which
  rose from 130,000 tonnes in May to 720,000 tonnes the following month, and for food, rising
  by 97,000 tonnes to reach 934,000 tonnes in the same time period.   

  “We also saw CPO production in June increase by about 6 percent mtm to 3.29 million tonnes,
  while that of palm kernel oil [PKO] rose to 322,000 tonnes. The increase in CPO production is
  in line with the actual fresh fruit bunches [FFB] production in the plantations, but the FFB
  processed at the palm oil mills [POM] has not yet reached 100 percent due to the high
  occupancy of the POM tanks,” Mukti said. 

  With production, consumption and exports all rising, CPO stock at the end of June was
  estimated at 6.68 million tonnes, lower than the stock at the end of May when stocks stood
  at 7.23 million tonnes. 

  Meanwhile, conditions in the global market saw a decline in CPO CIF Rotterdam prices, from
  US$1,714 in May to $1,573/tonne in June.   

  Likewise, the domestic average price (KPBN auction) in June moved down from around
  Rp 13,000 (88 cents) per kilogram in early June, dropping to around Rp 8,500/kg at the end
  of the month.   

  This price situation indicates that June’s exports did not significantly reduce the high domestic
  stockpiles, so they have been unable to push up domestic CPO prices.  

  Recently, the government moved forward with yet another strategy to level up CPO and FFB
  prices, after a series of previous attempts failed to reduce the commodity supplies hoarded by
  domestic producers.   

  Following a plan to temporarily enact a mandatory program for B35 biodiesel in late July, the
  government made a drastic maneuver to curb domestic CPO stocks by exempting a set of
  export levies and taxes for the plantation commodity and its by-products.  

  While the B35 mandatory implementation is still in jeopardy, the CPO export levies and tax
  exemptions are officially enforced, having begun on July 15 through to Aug. 30.   

  Still, members of the palm oil industry are pessimistic about the effectiveness of such fiscal
  measures. They believe zeroing out exit duties will not significantly reduce domestic CPO
  supplies thus boosting its valuation along with the selling price of FFB.  

  According to Palm Oil Farmers Association (Apkasindo) data, the average price of FFB at the
  farmer level ranged from Rp 1,250 to Rp 1,300 per kg.  

  Apkasindo chairman Gulat Manurung Sawit said the temporary halting of export levies had only
  increased FFB prices for farmers by just Rp 25-Rp 50 per kg, far below the expected level of
  Rp 2,000 per kg.   

  Gulat said the government should consider a new resolution to inflate FFB prices at the farmer
  level and reduce CPO supplies on the producer side.   

  For that, he suggested a temporary abolition of the domestic market obligation (DMO) and
  domestic price obligation (DPO) policies for local CPO trade.  

  Consistent with Apkasindo’s suggestion, GAPKI agreed that the dissolution of DMO and DPO
  measures would ease CPO exports. Therefore, its excessive domestic supplies could be
  reduced significantly. 
 

  Source: The Jakarta Post