TOBA Still Assessing Impact of Natural Resources Export Regulations via Danantara
PT TBS Energi Utama Tbk (TOBA) has stated it has not identified any indication that the planned implementation of the Government Regulation (PP) on Natural Resources (SDA) Export Management will have a material impact on the company’s business continuity. However, the firm is awaiting the issuance of the regulation and its implementing rules to conduct a more comprehensive assessment. The statement was made by TOBA’s management in response to the Indonesia Stock Exchange (BEI) regarding the government’s plan to issue the PP on SDA Export Management. The company expressed support for the government’s efforts to optimise the benefits of natural resource management for public prosperity and sustainable national development through the regulation. However, TOBA emphasised it is still waiting for official rules before assessing the overall impact on operations and business performance. TOBA stated it cannot yet conduct a comprehensive evaluation of potential operational impacts from the PP on SDA Export Management, as the regulation and its implementing rules have not been issued. Similar assessments are being carried out for potential financial impacts, including on revenue, operating profit, net profit, and cash flows. According to TOBA, the assessment covers aspects such as payment mechanisms, export governance, and other provisions to be further detailed in government regulations. However, as the PP and its implementing rules have not been issued, the company cannot yet measure the potential financial impact. The firm is also reviewing potential effects on fulfilling obligations and covenants in its financing agreements. In the assessment, TOBA is considering possible changes in price setting, payment mechanisms, export governance, and other factors that could affect its business operations. On another front, the company is evaluating potential legal risks that may arise, including those related to fulfilling contractual obligations under existing agreements.