Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

GOLDEN AGRI-RESOURCES LTD (GAGR)
My previous session
Most popular
  Report  
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweetsMarketScreener Strategies

Indonesia Bans New Palm Oil and Mining Operations

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/15/2016 | 10:46am CET

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 ben.otto@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
CRUDE PALM OIL FUTURES (CPO) - CMG (ELECTRONIC)/C1 -0.16% 482.25 End-of-day quote.-21.30%
GOLDEN AGRI-RESOURCES LTD -2.08% 0.235 End-of-day quote.-37.33%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GOLDEN AGRI-RESOURCES LTD
11/13GOLDEN AGRI RESOURCES : Appointment of Non-Executive Independent Director.
PU
11/13INTERIM PERFORMANCE PRESENTATION 3Q : nine-month period ended 30 September 2018..
PU
11/13GOLDEN AGRI RESOURCES : rsquo; third quarter 2018 performance saw quarter-on-qua..
PU
11/13GOLDEN AGRI RESOURCES : 2018 Third Quarter Financial Statement and Dividend Anno..
PU
10/29GOLDEN AGRI RESOURCES : Notification of Results Release
PU
10/17GOLDEN AGRI RESOURCES : Agri Stena and Bay Crest Management create chemical tank..
AQ
10/13GOLDEN AGRI RESOURCES : New chemical tanker initiative to be launched
AQ
10/05GOLDEN AGRI RESOURCES : New Joint Venture
PU
09/27GOLDEN AGRI RESOURCES : announces the opening of its Central Business Services a..
PU
09/26GOLDEN AGRI RESOURCES : Asset Acquisitions and Disposals
PU
More news
News from SeekingAlpha
10/05Golden Agri-Resources announces a new joint venture 
08/14Golden Agri-Resources ADR 2018 Q2 - Results - Earnings Call Slides 
06/29THE CHAIN : Lack Of Palm Oil Traceability Contributing To Deforestation In Sumat.. 
2017Expected CPO Price Decline In 2H17 Supports Our View Of 15% Further Downside .. 
2016GOLDEN AGRI-RESOURCES : Share Price Does Not Reflect Underlying Fundamentals, Sh.. 
Financials ($)
Sales 2018 7 198 M
EBIT 2018 227 M
Net income 2018 77,2 M
Debt 2018 2 413 M
Yield 2018 3,50%
P/E ratio 2018 21,68
P/E ratio 2019 13,81
EV / Sales 2018 0,64x
EV / Sales 2019 0,60x
Capitalization 2 194 M
Chart GOLDEN AGRI-RESOURCES LTD
Duration : Period :
Golden Agri-Resources Ltd Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLDEN AGRI-RESOURCES LTD
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 14
Average target price 0,21 $
Spread / Average Target 20%
EPS Revisions
Managers
NameTitle
Franky Oesman Widjaja Chairman & Chief Executive Officer
Muktar Widjaja President & Executive Director
Rafael Buhay Concepcion Chief Financial Officer & Executive Director
Syn Pau Lew Lead Independent Non-Executive Director
Kaneyalall Hawabhay Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
GOLDEN AGRI-RESOURCES LTD-37.33%2 194
IOI CORPORATION BHD--.--%6 584
AAK14.00%3 761
FIRST RESOURCES LTD-15.43%1 832
ASTRA AGRO LESTARI TBK PT--.--%1 413
KERNEL HOLDING SA8.68%1 152