Jakarta’s land crackdown clouds outlook for Singapore-listed plantation firms
Companies tight-lipped on impact after Indonesian authorities confiscate 2 million out of a targeted 3 million hectares of reportedly illegally run plantations
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[SINGAPORE] Singapore-listed palm oil firms with Indonesian exposure are treading cautiously as Jakarta pushes ahead with a sweeping land seizure. The authorities have confiscated more than 2 million hectares (ha) of allegedly illegal forest concessions, raising concerns over the impact of the potential fallout on these companies’ operations.
With reviews still ongoing, plantation groups, including Bumitama Agri and First Resources, that were contacted by The Business Times, either declined to comment or acknowledged regulatory discussions.
In response to BT queries, Bumitama Agri , a pure upstream plantation player in Indonesia, said that it is in discussions with the Indonesian authorities, though it could not specify how much land may be affected.
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