(Indonesia, 25th) Indonesian authorities are planning to tighten regulations on commodity exports. Geo Energy Resources issued a statement before the market opened, saying the group has not yet received any formal notice or directive regarding this matter.
In a statement on Monday (May 25), Geo Energy Resources said the expected policy framework, administrative processes and document requirements still need to be further clarified. The group will continue to closely monitor the situation and communicate with relevant agencies and stakeholders as appropriate.
The group pointed out that the Indonesian government’s plan to centralise control over commodity exports reflects the authorities’ broader policy direction to strengthen national regulation and improve coordination in Indonesia’s key resource sectors.
The group further stated that all of its current production, logistics, customer relationships and export activities are operating normally. Its road construction subsidiary, PT Marga Bara Jaya (MBJ), is making steady progress, with truck trials successfully completed last week and operations expected to commence in the second half of this year.
The Board believes that as relevant agencies and industry stakeholders continuously refine and implement policies, the three-month transition period proposed by the new policy may take some time to be fully rolled out and implemented.
Additionally, the group noted that coal prices remain firm, with the Indonesian Coal Index (ICI4) standing at USD 64.43 per tonne (about RM 254.63) as of May 22.
“The group will continue to rigorously execute its growth strategy and operational plans, while maintaining flexibility to respond to ever-changing regulations and policies.”
Earlier reports stated that Indonesian authorities intend to increase fiscal revenues by exercising stricter control over the sale and pricing of natural resources.
Indonesian President Prabowo, in a speech to parliament last Wednesday (20th) on the country’s fiscal position, pointed out that in the past 34 years, Indonesia lost USD 908 billion (about SGD 1.16 trillion) in revenues due to the low prices of commodities.
The new policy to tighten commodity exports will allow for a three-month transition period during which exporters and buyers may continue trading as usual, with all transactions supervised by PT Danantara Sumber Daya, a state-owned enterprise under Indonesia’s sovereign wealth fund Danantara.
After the transition period, the new measures will be fully implemented, with PT Danantara Sumber Daya responsible for purchasing goods from domestic sellers and reselling them to foreign buyers.
Moreover, the initial implementation of the new policy will only cover exports of palm oil, coal, and ferroalloys. Progress will be reviewed every three months, and more commodities may be added to the controls thereafter.
After the market opened on Monday, Geo Energy Resources’ share price fell, down 3% to 0.485 as of 9:45am.
The group pointed out that the Indonesian government’s plan to centralise control over commodity exports reflects the authorities’ broader policy direction to strengthen national regulation and improve coordination in Indonesia’s key resource sectors.
The group further stated that all of its current production, logistics, customer relationships and export activities are operating normally. Its road construction subsidiary, PT Marga Bara Jaya (MBJ), is making steady progress, with truck trials successfully completed last week and operations expected to commence in the second half of this year.
The Board believes that as relevant agencies and industry stakeholders continuously refine and implement policies, the three-month transition period proposed by the new policy may take some time to be fully rolled out and implemented.
Additionally, the group noted that coal prices remain firm, with the Indonesian Coal Index (ICI4) standing at USD 64.43 per tonne (about RM 254.63) as of May 22.
“The group will continue to rigorously execute its growth strategy and operational plans, while maintaining flexibility to respond to ever-changing regulations and policies.”
Earlier reports stated that Indonesian authorities intend to increase fiscal revenues by exercising stricter control over the sale and pricing of natural resources.
Indonesian President Prabowo, in a speech to parliament last Wednesday (20th) on the country’s fiscal position, pointed out that in the past 34 years, Indonesia lost USD 908 billion (about SGD 1.16 trillion) in revenues due to the low prices of commodities.
The new policy to tighten commodity exports will allow for a three-month transition period during which exporters and buyers may continue trading as usual, with all transactions supervised by PT Danantara Sumber Daya, a state-owned enterprise under Indonesia’s sovereign wealth fund Danantara.
After the transition period, the new measures will be fully implemented, with PT Danantara Sumber Daya responsible for purchasing goods from domestic sellers and reselling them to foreign buyers.
Moreover, the initial implementation of the new policy will only cover exports of palm oil, coal, and ferroalloys. Progress will be reviewed every three months, and more commodities may be added to the controls thereafter.
After the market opened on Monday, Geo Energy Resources’ share price fell, down 3% to 0.485 as of 9:45am.