GEO ENERGY: The Government Scare That Fizzled; Time to Re-focus on Strong Fundamentals
Geo Energy Resources' stock listed on SGX has been punished by market fears over a nascent government policy.
President Prabowo Subianto had announced in May 2026 that Indonesia would centralise exports of key commodities under sovereign wealth fund Danantara Indonesia.
That sent the stocks of local producers of coal, such as Geo Energy, and other commodities on a downward spiral.
Geo Energy tumbled from ~64 cents two months ago to 43 centsyesterday.
That government plan, however, has been significantly diluted.
Geo Energy, which has a large unfolding infrastructure and production goal, has now reassured stakeholders that "Danantara will only serve as a trade oversight intermediary".
Crucially, for investors worried about disruption, Geo Energy said: "Danantara will NOT assume ownership of the existing export contract, take over customer relationships or replace existing commercial arrangements between producers and buyers".