Category: Agriculture
Forestry permits review: Business groups affected (2)
Appendix III of SK.01/MENLHK/SETJEN/KUM.1/1/2022 from minister of forestry and environmental affairs about the list of companies whose permits/concessions are being reviewed can be very confusing for some because earlier media reports pointed to revocation of their land titles (HGU).
Read MoreReview of forestry permits in timber, palm, and mining: Business groups affected (1)
Other than revocation of forest concessions/rights to use/permits of 192 companies, ministry of environment and forest affairs is reviewing concessions of 103 companies covering 1.37 million hectares, whose permits were issued between 1993 and 2018.
Read MoreRevocation of permits in timber and plantation also hit major business groups (2)
Minister of forestry and environment affairs Siti Nurbaya, a politician from NasDem Party, has issued a decree on revocation of forest concession granted to 192 companies covering 3.12 million hectares in the period of 2015-2021. Some of them are active plantation companies, including those owned by giants listed on Singapore Exchange (SGX), KLSE, and IDX.
Read MoreRevocation of permits in timber and plantation also hit major business groups
President Joko ‘Jokowi’ Widodo repeatedly said he would not hesitate to revoke neglected concessions even if the holders are tycoons. He delivered. After revoking thousands of permits in mining sector, the government has revoked timber and plantation concessions of 11 companies in West Kalimantan province alone affecting nearly 200,000 hectares.
Read MoreResource Nationalism in Palm Oil Plantation
The benchmark November 2014 contracts of crude palm oil (CPO) dropped further by more than 1% to RM2002 per ton today just when people in plantation industry talk about Indonesia’s plan to cap ownership of foreign investments to less than 30%.
Read MorePalm Oil Journal: MAG Plantation & SIPEF
Plantation shares end mostly lower in the region Thursday (Aug 21), dragged down by continuous downfall of crude palm oil (CPO) in both physical and futures market. The benchmark November 2014 contracts of CPO end lower by RM9 to RM2040 per ton.
Read MorePalm Oil Journal No.76/2014: Another Biodiesel ‘Story’?
KPB Nusantara, the joint marketing office of state plantations, sold most of CPO packages auctioned off Monday (August 18) at Rp8076-8236/Kg (VAT 10% included), dragged down by continuous downfall of CPO in the futures market and appreciation of rupiah. Indonesian CPO producers, meanwhile, are working on another story about biodiesel.
Read MorePalm Oil Journal No.75/2014: Below RM2000?
Pretty much as predicted the benchmark October 2014 contracts of crude palm oil (CPO) dropped further by RM39 (1.8%) to RM2094 per ton on Bursa Malaysia Derivatives Friday (August 15) despite reports about plans from Indonesian lawmakers to slash foreign ownership of plantations to no more than 30%. The commodity has lost 27% since March 2014.
Read MorePalm Oil Journal No.74/2014: New Low
The benchmark October 2014 contracts of crude palm oil (CPO) lost almost 2% to close at RM2133 per ton on Thursday (August 14) on Bursa Malaysia Derivatives. August contracts dropped 3% to RM2150, while November and December down RM40 and RM42 to RM2135 and RM2151 per ton respectively. October and November contracts were traded as low as RM2115 and RM2113 per ton respectively.
Read MorePalm Oil Journal No.73/2014: Where is the Bottom?
KPB Nusantara, the joint marketing office of state plantations, sold most CPO packages auctioned off Wednesday (August 13) at Rp8546/Kg (VAT 10% included) or Rp7769/Kg net (US$665/ton), way below average price of CPO in the first half of 2014, which had contributed strong performance of plantation companies in the period.
Read MoreFirst Half 2014 Results: Bumitama Agri vs First Resources
Shares of First Resources Ltd, controlled by Indonesian family of Fangiono Ciliandra/Surya Dumai Group, collapsed 4.55% this morning as investors responded negatively the company’s first half 2014 results, where it posted 28.8% drop in net profit to US$73.96 million.
Read MorePalm Oil Journal No.72/2014
The benchmark October contracts of crude palm oil (CPO) recovered RM9 to RM2185 per ton this morning after trading as low as RM2162 per ton. Interestingly, only seven out of 14 plantation companies listed on KLSE reporting higher output in July 2014 over July 2013. KL Kepong, for example, reported only 4.3% growth in the month.
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