Latest news with #WilmarInternationalLtd
The Star
3 days ago
- Business
- The Star
Prabowo govt intends to go after illegal mines
THE nation will move to 'rectify' illegal mines estimated to have caused US$19bil (RM80bil) in state losses, President Prabowo Subianto said in his first State of the Nation address. The government has identified 1,063 illegal mining sites and is seeking support to crack down on them, Prabowo said in the annual speech in Jakarta on Friday. The illicit mines may be causing 300 trillion rupiah (RM78bil) in losses to the state, he said, without specifying over what time period. Illegal and poorly-regulated mining is a major problem in South-East Asia's largest economy, causing disproportionate environmental damage and depriving the government of tax revenue. However, any crackdown could impact the supply of major export commodities like coal, nickel and tin. A push against illegal mining would follow the seizure of 3.1 million hectares of palm oil plantations that the government says have violated regulations. Prabowo has gotten tough on the sector, with his attorney general's office launching a legal case against major producer Wilmar International Ltd. Since coming to power in October, Prabowo has targeted the country's vast commodity sector more aggressively than his predecessor. Alongside the Wilmar probe, the attorney general's office is investigating corruption at state oil firm, PT Pertamina. The Ministry of Environment also plans to punish companies in the Indonesia Morowali Industrial Park – a major nickel smelting centre – for environmental breaches. — Bloomberg
The Star
5 days ago
- Business
- The Star
Brighter outlook likely for Wilmar International in 2H25
CIMB Research said the planter pointed out that refining margins in Malaysia and Indonesia are expected to remain challenging. PETALING JAYA: CIMB Research expects crude palm oil (CPO) prices to hold steady, supported by Indonesia's biodiesel policy and limited production growth. The research house shared that Wilmar International Ltd has guided for a favourable plantation outlook in the second half of financial year 2025 (2H25), underpinned by firm CPO prices, steady fresh fruit bunches (FFB) growth, and stable crushing margins. However, CIMB Research said during Wilmar's second quarter of financial year 2025 results briefing, the planter pointed out that refining margins in Malaysia and Indonesia are expected to remain challenging. 'Wilmar maintained that the plantation business should remain favourable in 2H25, underpinned by steady CPO prices, FFB output growth (5%), and limited impact from dry weather (no fires reported at its estates),' it added. The research house said refining margins remain challenging, particularly in Malaysia and Indonesia, with profits expected to be modest and dependent on raw material availability, demand trends, and market timing. The research house believed the 19% US import tariff on Malaysian and Indonesian palm oil is expected to have minimal direct impact. This is because the United States accounts for 2% to 3% of Wilmar's palm oil export volumes, and volumes can be diverted to India, Africa, or other markets. It said production growth in Indonesia for 2025 is now expected at about 5% year-on-year, slightly below earlier expectations. CIMB Research believed regulatory risks in Indonesia remain, including a pending Supreme Court decision on the CPO export permit case, an ongoing rice quality investigation, and unresolved forestry land compliance issues. 'The group expects minimal impact from the higher US import tariff on Malaysia and Indonesia and believes Indonesia's B50 biodiesel mandate is achievable,' it added. Furthermore, the research house said Wilmar expects Indonesia's B50 biodiesel mandate to be implementable if the government proceeds with the policy mandate. Meanwhile, consumer sentiment in China has improved in recent months, although recovery is expected to be gradual; downtrading persists in some categories. 'Expansion of the central kitchen business in China continues, albeit at a slower pace to refine the model and improve efficiency,' it noted.
