Fitch Ratings: Indonesian export regulations may increase credit risks for commodity companies.

Fitch Ratings said in a report that under the government's planned implementation of single-channel export regulations, Indonesian commodity exporters are expected to face higher credit risks. This regulation will be implemented through the state entity Danantara Sumberdaya Indonesia to guide the export of thermal coal, palm oil, and ferroalloys. The agency stated that this policy, which is set to be fully implemented by January 1, 2027, could reduce pricing flexibility and control over export revenues, although companies with strong balance sheets or business diversification may be in a more favorable position. Fitch stated that the details of implementation are still unclear, and the impact on mining and plantation companies will depend on the policy design. The agency added that uncertainty could put pressure on cash flow, increase transaction costs, and raise foreign exchange risks.