Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  SINGAPORE EXCHANGE  >  Golden Agri-Resources Ltd    GAGR   MU0117U00026

News SummaryMost relevantAll newsSector newsTweets 

Indonesia Bans New Palm Oil and Mining Operations

share with twitter share with LinkedIn share with facebook
share via e-mail
04/15/2016 | 10:46am CEST

JAKARTA?Indonesia will temporarily bar new palm oil and mining operations to help protect the country's vast tropical forests following international criticism over its environmental stewardship.

A spokesman for Indonesian President Joko Widodo said on Friday that the ban would likely take effect this year and last for an undetermined time.

The moratorium would halt new permits for palm oil and mining operations, both mainstays of Indonesia's economy. Mr. Widodo suggested growers could double production on existing lands if they farmed more efficiently.

Foreign officials and environmental activists have criticized Indonesia for the rapid loss of its tropical rainforest, mainly on the islands of Sumatra and Borneo, much of it tied to land conversion to support palm oil and pulp production. Dry-season fires used by farmers and companies to clear forest and scrublands regularly send toxic smoke billowing throughout the region, raising air pollution levels in neighboring countries such as Singapore, Malaysia, Thailand and the Philippines.

Mr. Widodo vowed during and after global climate talks in Paris last year to improve Indonesia's record on its rain forests.

Environmental group Greenpeace welcomed the news but expressed skepticism about its implementation because the ban's authority rests on a presidential decree, which carries less weight than a law. The group pointed to a current ban on palm oil licenses in peatland and some forest areas that it says isn't adequately being enforced.

"We have learned from weak enforcement of the existing moratorium that a presidential instruction lacks teeth," said Kiki Taufik, forest campaigner for Greenpeace in Indonesia.

The moratorium would come as Mr. Widodo struggles to restore Southeast Asia's largest economy to higher growth rates amid slack demand from China and budget cuts it has imposed. The economy grew by 4.7% last year, greatly underperforming the rate of growth it enjoyed a few years ago during a commodities boom.

Palm oil has grown into a $20 billion export industry in Indonesia, fed by a global boom for the edible oil used in products from toothpaste and candy bars to cleaning products. Growers want to expand from production of 32.5 million metric tons of palm oil last year to 40 million by 2020, an effort they have said requires adding millions of hectares of lands for production.

The Indonesian Palm Oil Association said it was still seeking details about the plan and highlighted the importance of the industry for export earnings and millions of jobs.

"The palm oil sector is a strategic sector that contributed to exports (of almost) $19 billion in 2015, and this figure is much higher than foreign exchange from exports of oil and gas," the association said.

Golden Agri-Resources, the world's second-largest palm oil company and a unit of Indonesian conglomerate Sinar Mas, supported the government's move. "Any government initiative that is focused on intensification over land expansion is to be applauded," said its spokeswoman Anita Neville.

Ms. Neville said that the company's yields are already among the sector's highest, but that the challenge is to spread capacity gains among millions of smallholders.

Mining experts said the move wasn't immediately a cause for alarm and said that a steadily extending moratorium in forest areas had led most companies to understand that forests are effectively off limits. Many companies in sectors like coal have meanwhile cut back due to low global prices and demand.

Supriatna Suhala, executive director of the Indonesian Coal Mining Association, said the moratorium would allow the government to improve governance and monitoring and help reduce illegal mining.

"In the situation of prolonged low prices of mining products due to significant oversupply, presumably a lot of (our) members will agree with the policy," he said.

Write to Ben Otto at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
04/26 GOLDEN AGRI RESOURCES : Appointment of Non-Executive Independent Director
04/26 GOLDEN AGRI RESOURCES : Results of special meeting held on 25 April 2017
04/26 GOLDEN AGRI RESOURCES : Appointment to Board of Directors and Board Committees
04/26 GOLDEN AGRI RESOURCES : Results of annual meeting held on 25 April 2017
04/25 GOLDEN AGRI RESOURCES : Disclosure of Changes in Interest of Substantial Shareho..
04/05 GOLDEN AGRI RESOURCES : What does boycotting palm oil achieve? – live chat
04/04 GOLDEN AGRI RESOURCES : Non-Executive Independent Directors
04/04 GOLDEN AGRI RESOURCES : Cessation of Non-Executive Independent Director
04/04 GOLDEN AGRI RESOURCES : Notice of Annual Meeting
03/31 GOLDEN AGRI RESOURCES : Proposed Amendments to Constitution
More news
Sector news : Starch, Vegetable Fat & Oil Manufacturing
04/28DJMONDELEZ INTERNATIONAL : How BuzzFeed and Mondelez Brought Healthy Food Videos t..
04/27DJFrom Diapers to Soda, Big Brands Feel Pinch as Consumers Pull Back
04/26DJFrom Diapers to Soda, Big Brands Feel Pinch as Consumers Pull Back
04/26DJFrom Diapers to Soda, Big Brands Feel Pinch as Consumers Pull Back
04/26DJFrom Diaper to Soda Makers, Big Brands Feel the Pinch of a Consumer Pullback
More sector news : Starch, Vegetable Fat & Oil Manufacturing
News from SeekingAlpha
2016 GOLDEN AGRI-RESOURCES : Share Price Does Not Reflect Underlying Fundamentals, Sh..
2015 Give Shares Of Golden-Agri Resources A Pass
Financials ($)
Sales 2017 7 504 M
EBIT 2017 345 M
Net income 2017 211 M
Debt 2017 2 494 M
Yield 2017 3,23%
P/E ratio 2017 14,78
P/E ratio 2018 13,67
EV / Sales 2017 0,77x
EV / Sales 2018 0,73x
Capitalization 3 265 M
More Financials
Duration : Period :
Golden Agri-Resources Ltd Technical Analysis Chart | GAGR | MU0117U00026 | 4-Traders
Full-screen chart
Technical analysis trends GOLDEN AGRI-RESOU...
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 15
Average target price 0,27 $
Spread / Average Target 6,2%
Consensus details
EPS Revisions
More Estimates Revisions
Franky Oesman Widjaja Chairman & Chief Executive Officer
Muktar Widjaja President & Non-Independent Non-Executive Director
Rafael Buhay Concepcion CFO & Non-Independent Executive Director
Frankle Widjaja Non-Independent Non-Executive Director
Pian Tee Hong Lead Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
AAK AB (PUBL)4.75%3 034
More Results