JAKARTA. PT Sinar Mas Agro Resources and Technology Tbk (SMAR) has issued a clarification to the Indonesia Stock Exchange (BEI) regarding the upcoming Government Regulation on Natural Resources Export Governance (PP Ekspor SDA).
As previously reported, the Indonesian government, through PT Danantara Sumberdaya Indonesia (DSI), is preparing to manage natural resource exports. This initiative is based on the PP Ekspor SDA, which mandates a single-door export policy and the domestic placement of 100% of Natural Resources Export Proceeds (DHE).
DSI, which has now officially attained State-Owned Enterprise (BUMN) status, is set to become the sole exporter for several strategic natural resource commodities.
Initially, the commodities slated for management by PT DSI include crude palm oil (CPO), coal, and ferrous alloy, signaling a significant shift in export practices for these key sectors. This single-door export policy is scheduled to commence on June 1, 2026, as an initial phase, with full implementation anticipated by January 1, 2027.
DR.ING Gianto Widjaja, Deputy President Director of SMAR, affirmed the company’s understanding of the government’s intention to issue the regulation. He noted that the PP aims to govern the export of strategic natural resource commodities, specifically including palm oil products. This comprehensive regulation is designed to safeguard domestic supply stability, bolster national economic resilience, enhance added value for these resources, and ensure the sustainability of national development.
SMAR reiterated its unwavering commitment to fully comply with all applicable government regulations and legal provisions, including the forthcoming Natural Resources Export Governance policy. “Currently, the company is actively monitoring developments and awaiting the issuance of the PP along with its implementing provisions and guidelines,” Gianto stated in a disclosure dated May 28, 2026.
SMAR acknowledges that it is still awaiting the official release of the associated PP, including its specific provisions and/or implementation instructions, to thoroughly comprehend the full scope of this new policy. Consequently, SMAR is not yet in a position to fully assess and disclose the potential impact of the upcoming PP on the company’s operations and overall performance.
Gianto emphasized that the company continues to diligently monitor the evolution of this policy. “Once the PP, along with its detailed provisions and/or implementing guidelines, is officially published, the company will promptly prepare the necessary adjustments to ensure compliance and uphold long-term business continuity,” he elaborated.
In a related and significant development, SMAR recently announced its plan for a merger with PT Perusahaan Perkebunan Panigoran. According to the prospectus published on the Indonesia Stock Exchange (BEI) website, the integration of Panigoran into SMART is an integral part of an internal restructuring initiative. This move aims to streamline the corporate structure of SMART and its subsidiaries, especially given that all shares of PANIGORAN are directly owned by SMART.
As Panigoran is a wholly-owned subsidiary of SMART (100% ownership), this merger is not expected to alter SMART’s overall control or business strategy. Furthermore, it is projected to have no material adverse impact on the financial condition, operational results, or long-term business continuity of SMART as the receiving entity for the merger within the group.
Upon the merger’s effectiveness, SMART, as the surviving entity, will continue its operations under its current name and remain a publicly listed company on the BEI. Conversely, Panigoran’s legal existence will formally cease.
Summary
PT Sinar Mas Agro Resources and Technology Tbk (SMAR) has clarified its position regarding the upcoming Government Regulation on Natural Resources Export Governance (PP Ekspor SDA). This regulation mandates a single-door export policy for strategic commodities, including crude palm oil, to be managed by the State-Owned Enterprise PT Danantara Sumberdaya Indonesia (DSI) starting June 1, 2026. SMAR acknowledges the government’s intent to safeguard domestic supply stability and bolster economic resilience, and is committed to full compliance.
Currently, SMAR is actively monitoring developments and awaiting the official issuance of the PP and its implementing provisions to fully assess its potential impact on operations. The company is not yet in a position to disclose the full scope of this impact. Separately, SMAR also announced a plan to merge with its wholly-owned subsidiary, PT Perusahaan Perkebunan Panigoran, as part of an internal restructuring, which is not expected to materially affect SMAR’s control or financial condition.