Before we delve into Indonesia’s June 2021 trade statistics, we first take a quick look at Indonesia’s full-year 2020 trade performance as Indonesia’s Statistical Agency (Badan Pusat Statistik, BPS) released its annual ‘Indonesian Foreign Trade Statistics – 2020’ report in the first week of July 2021.
Update COVID-19 in Indonesia: 2,615,529 confirmed infections, 68,219 deaths (13 July 2021)
13 July 2021 (closed)
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Below is a list with tagged columns and company profiles.
Today's Headlines Palm Oil
On Wednesday (05.05.2021) Indonesia Investments released the April 2021 edition of its monthly report. In the report we track important developments - from the perspective of politics, the economy and social matters - that were influential (and impacted on the Indonesian economy) last month.
Indonesian President Joko Widodo kept his promise (that he made in April 2016) by signing Presidential Instruction No 8/2018 on the Delay and Evaluation of Permits and Elevated Productivity of Oil Palm Plantations. Through this instruction expansion of oil palm plantations is cut short for the coming three years, while the government also seeks to evaluate and reorganize permits and procedures in this industry.
Andira Agro, an Indonesia-based company that owns, operates, and manages palm oil plantations as well as one crude palm oil mill, is set to make its trading debut on the Indonesia Stock Exchange on Thursday (16/08). The offering price for the company's initial public offering (IPO) is set at IDR 200 per share.
Both Indonesia's Trade Ministry and the Indonesian Coal Mining Association (APBI) confirmed that the mandatory national insurance for coal and crude palm oil (CPO) exports regulation has been postponed by another six months. Thus the regulation is now expected to come into effect per 1 February 2019.
Earlier this week US President Donald Trump announced plans to impose 10 percent import tariffs on USD $200 billion worth of Chinese export products by 30 August 2018, thus further escalating the trade war between the USA and China. While earlier US tariffs focused mostly on industrial goods, the new list of proposed import tariffs includes various commodities (metals, energy and agriculture) as well as consumer products. As a result most commodity prices were in red territory on Wednesday (11/07).
In early April 2018 the United States confirmed steep anti-dumping duties and countervailing duties on Indonesian biodiesel imports. Published through the Federal Register the US imposed additional duties that range between 126.97 percent and 341.38 percent. For sure, this seriously harms the competitiveness of Indonesian biodiesel shipments to the world's top economy. If the policy is not altered, then it basically means the end of Indonesian biodiesel exports to the US market.
After the World Trade Organization (WTO) had ruled, largely, in favor of Indonesia (in January 2018) in the battle between Indonesia and the European Union (EU) regarding the latter's anti-dumping duties on Indonesian biodiesel exports, Indonesia has now also won its appeal at the EU court. The European Court of Justice, the highest court in the EU, ruled that the bloc needs to scrap its anti-dumping duties on imports of Indonesian biodiesel products that range between 8.8 - 23.3 percent.
After receiving criticism from various stakeholders, the Indonesian government reportedly decided to postpone the implementation of a new regulation that requires all domestic coal, palm oil and rice exporters to use ships that are owned by local sea shipping companies and requires them to use domestic insurance.
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Last week, president Susilo Bambang Yudhoyono extended the moratorium on new permits to convert natural forests and peat lands for a further two years. In 2011, Indonesia's government signed the two-year primary forest moratorium that came into effect on 20 May 2011 and expired in May 2013. This moratorium implies a temporary stop to the granting of new permits to clear rain forests and peat lands in the country. The moratorium particularly aims to limit Indonesia's quickly expanding palm oil industry.
Although the United States continues its traditional focus on direct investments in developed countries, primarily in Western Europe, there has been a significant rise in US investments in Indonesia in recent years. Whereas US investments in the developed economies of Western Europe is mostly found in the financial sector and through holding companies, in developing Asia, the US is more focused on the manufacturing sector due to lower production costs. In the last two years, the US emerged as the second-largest investor in Indonesia after Japan.
Shareholders of Astra Agro Lestari, Indonesia's largest agribusiness company by value (which is particularly engaged in palm oil and rubber plantations), agreed to distribute IDR 1.08 trillion (USD $111 million) in dividends to its shareholders. The allocated amount is equivalent to about 45 percent of the company's net profit in 2012. Dividend per share is set at IDR 685 (USD $0.071). Last November, the company had already paid interim dividend of IDR 230 per share. Final dividend will be paid on 3 June 2013.
Indonesian companies engaged in the production of a variety of agricultural products, such as palm oil, experienced a rather poor year in 2012 regarding net profit. Global economic turmoil has reduced the world's consumption of palm oil in both the developed markets and developing markets. In particular decreased demand from China, the world’s biggest buyer after India, made a negative impact on the balance sheets of Indonesian companies.
Associated businesses Palm Oil
- Astra Agro Lestari
- Astra International
- Austindo Nusantara Jaya
- Bakrie Sumatera Plantations
- Dharma Satya Nusantara
- Eagle High Plantations
- Eterindo Wahanatama
- Golden Plantation
- Gozco Plantations
- Indofood Sukses Makmur