Jakarta, CNBC Indonesia – Share prices of issuers producing crude palm oil (CPO) compactly fell into the red zone in early trading today, Monday (25/4/2022).
Investors seem to be responding negatively to the news The government through the Indonesian President Joko Widodo (Jokowi) has officially banned the export of CPO and cooking oil products starting April 28.
The following are CPO stocks that fell this morning, at 09.30 WIB
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Astra Agro Lestari (AALI), down -6.84%, to Rp 12,250/unit
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Sawit Sumbermas Sarana (SSMS), -6.70%, to Rp 1,045/unit
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Cisadane Sawit Raya (CSRA), -6.67%, to Rp 700/unit
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PP London Sumatra Indonesia (LSIP), -6.60%, to IDR 1,345/unit
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Gozco Plantations (GZCO), -6.31%, to Rp 193/unit
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Eagle High Plantations (BWPT), -6,25%, ke Rp 75/unit
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Dharma Satya Nusantara (DSNG), -6.20%, to Rp 605/unit
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Provident Agro (PALM), -5.49%, to IDR 860/unit
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Triputra Agro Persada (TAPG), -5.38%, to Rp 615/unit
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Bakrie Sumatera Plantations (UNSP), -4.69%, to Rp 122/unit
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Austindo Nusantara Jaya (ANJT), -3.92%, to Rp 980/unit
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Tunas Baru Lampung (TBLA), -3.07%, to IDR 790/unit
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SMART (SMAR), -2.75%, to IDR 4,600/unit
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Jaya Agra Wattie (JAVA), -2.42%, to Rp. 161/unit
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Sampoerna Agro (SGRO), -1.24%, to Rp 2,380/unit
According to the data above, AALI shares fell the most and touched the lower auto rejection limit (ARB) of 6.84% this morning, after rising in the previous 2 days. With this, in a week AALI shares fell 6.13%.
Apart from AALI, SSMS, CSRA, and LSIP shares also broke the ARB limit in trading earlier this week.
GZCO and BWPT shares also fell 6.31% and 6.25%, respectively.
Previously, the Indonesian government officially bans exports of crude palm oil and cooking oil products starting April 28.
“At the meeting, I decided that the government would prohibit the export of raw materials for cooking oil and cooking oil,” said Jokowi, Friday (22/4/2022).
This policy was taken following the polemic of scarcity and rising cooking oil prices in the market which indicated mafia activity.
The Attorney General’s Office (AGO) recently named a number of suspects related to the cooking oil export case. They are the party that causes the scarcity of cooking oil in almost all parts of Indonesia.
It is sad that the party that has made it difficult for many people is the government, which is none other than the Director General of Foreign Trade of the Ministry of Trade, Indrasari Wisnu Wardhana (IWW), who has been named one of the suspects.
In addition to IWW, the AGO also named three other suspects in the case, namely Commissioner of PT Wilmar Nabati Indonesia MPT, Senior Manager of Corporate Affairs for Permata Hijau Group (PHG) SM, and General Manager of General Affairs Section of PT Musim Mas PTS. All suspects have been detained by the Attorney General’s Office.
According to MNC Sekuritas economist Tirta Citradi, the CPO export ban policy will certainly have an impact on decreasing monthly export performance.
“Throughout 2022, Indonesia’s vegetable oil exports have reached almost US$ 8 billion, meaning that the contribution is US$ 3 billion per month, so there is a possibility of losing exports of that size. The trade balance surplus may decrease, this is on a macro level, if it is prolonged, it certainly will not happen. okay for external stability,” said Tirta when contacted by CNBC Indonesia.
Regarding the impact on the market, the ban on CPO exports will have the opportunity to push the world CPO and vegetable oil prices up again considering that Indonesia is one of the largest global CPO players.
For palm oil issuers, the increase in global CPO prices is less enjoyable with the export ban, so it can be a negative catalyst for the performance of their stock prices, especially those with a large export share of business income.
CNBC INDONESIA RESEARCH TEAM
(adf/vap)
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