JAKARTA: Local commodity exporters are facing heightened credit risks as new regulations mandate single-door export arrangements through state-owned PT Danantara Sumberdaya Indonesia (DSI), a subsidiary of state asset fund Danantara, according to a Fitch Ratings report.
The new rules could erode issuers’ pricing flexibility and control over export proceeds, the global credit rating agency said, though the impact was likely to be more manageable for companies with robust balance sheets or diversified operations.
The policy’s details remain uncertain, however, while its implementation approach and design would affect the credit profiles of mining and plantation businesses.
According to The Straits Times, the government is scaling back centralised exports of strategic commodities coal, crude palm oil (CPO) and ferroalloys, a move that alarmed buyers and exporters over potential market disruption.
Danantara chief operating officer Dony Oskaria indirectly confirmed the policy shift on June 10, framing DSI’s role as a monitoring body rather than an export consolidator.
Dony’s remarks marked a sharp pivot from President Prabowo Subianto’s address at the House of Representatives plenary session on May 20.
In his speech, the president announced that strategic commodities exports would eventually be conducted through a single state-owned enterprise after September.
The government later downplayed the significance of Prabowo’s announcement, and said it referred to a “transition period” until the year-end, with the policy scheduled for an evaluation in September.
The new policy, which centralises export activity and allows DSI to set selling prices and margins, is scheduled for a full rollout on Jan 1, 2027.
It will apply to thermal coal, CPO and ferroalloys, although the timing, scope and mechanics of implementation remain unclear.
Thermal coal producer PT Golden Energy Mines, which has a rating of BB- with a stable outlook, is better positioned to absorb the changes due to its low-cost strategy and low leverage, according to Fitch. — The Jakarta Post/ANN
