Indonesia Foreign Exchange, Political and Economic, and Legal Environment Risks
First written in FY2016. 7 of 11 entries say "Worsened", first in FY2018. Latest entry: FY2026.
Osaka Steel moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 6 of 12 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As we proceed with the business withdrawal process, additional losses may arise if changes in the economic conditions, laws and regulations, exchange rates or other factors in the country require the plan to be revised, including delays in the various procedures required to implement the withdrawal or the occurrence of unforeseen costs or losses.」
Indonesia's foreign exchange, political and economic, and legal-environment risks are materializing as delays in the withdrawal process and the risk of additional losses, rather than as risks to continued operations. - FY2026-H1WorsenedAnnual report
「The Indonesian business also continued to face a challenging competitive environment as demand for construction steel declined following substantial government budget cuts for public works. Margins narrowed due to sluggish selling prices, shipments also decreased, and difficult earnings and financial conditions continued.」
The Indonesian government's budget for public works was cut substantially, which has emerged as a decline in construction demand. Political and economic risks that were previously identified have materialized in the demand and earnings environment. - FY2025WorsenedAnnual report
「In addition, demand trends in the Indonesian business have become uncertain because the government's policy shift reduced the infrastructure development budget, and the challenging operating environment is expected to continue.」
In addition to the previous risks related to foreign exchange, the political and economic environment, and laws and regulations, the company describes uncertainty in demand resulting from the government's policy shift and cuts to the infrastructure development budget. - FY2021-Q2WorsenedAnnual report
「However, from late February of that year, the business environment deteriorated as steel demand began to decline again because of the spread of COVID-19. In addition, the financial base deteriorated because of foreign exchange losses resulting from the rapid depreciation of the Indonesian rupiah, leaving the outlook uncertain.」
The company states that KOS incurred foreign exchange losses as a result of the rapid depreciation of the Indonesian rupiah, weakening its financial base. - FY2021-Q1WorsenedAnnual report
「The operating environment deteriorated substantially, partly because of sharp fluctuations in the exchange rate in Indonesia, where our overseas subsidiary is located.」
Sharp fluctuations in the Indonesian exchange rate are described as an actual factor contributing to the deterioration in the operating environment. - FY2020RestatedAnnual report
「We own a consolidated subsidiary in the Republic of Indonesia. Its performance may be affected by changes in foreign exchange rates and in Indonesia's political and economic conditions and laws and regulations. In addition, sudden political instability, natural disasters or other events in Indonesia could result in the suspension of plant operations.」
The company continues to describe the risks surrounding KOS related to foreign exchange, the political and economic environment, laws and regulations, political instability, and the suspension of operations caused by natural disasters. - FY2019RestatedAnnual report
「We own a subsidiary in the Republic of Indonesia. Its performance may be affected by changes in foreign exchange rates and in Indonesia's political and economic conditions and legal environment. In addition, sudden political instability, natural disasters or other events in Indonesia could result in the suspension of plant operations.」
The company continues to describe the risks surrounding KOS related to foreign exchange, the political and economic environment, the legal environment, political instability, and the suspension of operations caused by natural disasters. - FY2018WorsenedAnnual report
「In addition, sudden political instability, natural disasters or other events in Indonesia could result in the suspension of plant operations.」
In addition to the previous effects of changes in foreign exchange rates and the political, economic and legal environment, the company explicitly describes the specific impact of political instability and natural disasters, namely the suspension of plant operations. - FY2016First statedAnnual report
「Changes in foreign exchange rates, Indonesia's political and economic conditions, and its legal environment are expected to increase equipment-related costs and result in unexpected delays before operations commence. In addition, differences in living and business practices from Japan may affect the start of operations.」
The company identifies country- and region-specific risks related to the KOS project that could lead to higher costs and delays in the start of operations.