Foreign planters cast wary eye on Indonesian bill
If passed, it will cap foreign ownership of palm oil estates
Planters with large holdings in Indonesian plantations, already buffeted by the declining price of crude palm oil (CPO), now have to keep watch on a draft law that could hurt their operations and earnings.
The shares of plantation companies Sime Darby, IOI Corporation, and Kuala Lumpur Kepong slipped between 0.2 and 0.4 per cent yesterday, while Genting Plantations and Felda Global Ventures slid 1.7 per cent, following last week's reports that passage is being sought for the bill proposing to limit foreign ownership of plantation companies to 30 per cent - from the existing 95 per cent.
The draft law is aimed at maximising land usage, protecting the homes and livelihoods of Indonesians and achieving better environmental controls.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
New Articles
Singapore top recipient of Q1 cross-border investments in Apac: Knight Frank
Dasin Retail Trust’s trustee-manager chairman, directors deny allegations of misconduct
Keppel Infrastructure Trust posts 29.1% lower Q1 distributable income
Bitcoin faces worst month since FTX crash with ETF demand cooling
AIA launches wealth centre targeting high-net-worth clients
Prudential’s Q1 new business profit down 2% at S$743 million