Blog: Indonesia Imposes Mandatory Domestic Sales at 20% of Output

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3 comment(s). Last comment by Johnzhang 2022-02-04 15:35

AspiringInvestor

4 posts

Posted by AspiringInvestor > 2022-02-04 14:50 | Report Abuse

Your analysis is not exactly complete. The plantation counters with NIL acreage in Indonesia will be the beneficiaries big time. The gems are in Sarawak based plantation counters (Ta Ann, SOP, S'wak Plantations) acreage 100% in Sarawak. Also Ta Ann is ahead on ESG - forest replanting etc.

ahbah

6,238 posts

Posted by ahbah > 2022-02-04 15:28 | Report Abuse

Ta Ann, SOP, S'wak Plantations ... sapu kuat kuat !!!

Johnzhang

3,098 posts

Posted by Johnzhang > 2022-02-04 15:35 | Report Abuse

The Publicinvest analyst is quite raw in the matter and ignorant.
As a result of the Indonesian policy , CPO international price increased considerably. Hence , the remaining 80% of the production allowed for export market shall bring extra profit to compensate for the 20% mandatory local sales at lower price . In the end , foreign buyers and consumers are actually footing the bills. Why didn’t the analyst perform some calculations on the impact on KLK and Simepltn before crying fouls?

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