Foreign planters cast wary eye on Indonesian bill

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.