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Indonesia Parliament passes Plantation Bill into law

JAKARTA (Rambu Energy) – The House of Representative Council (DPR) on Monday passes Plantation Bill into Law, which among others limits the ownership of foreign investors in plantation sector.

The limitation of ownership is not set in the law, instead it will be determined by the law’s implementing government regulations (PP). Earlier, it was proposed that foreign investors ownership is limited to 30 percent, which was opposed by industry players.

Deputy Chairman of the House Commission IV Herman Khaeron said that the ownership of plantations will prioritize national owners.

“Foreign investment must be limited based on the type of plantation, business scale and condition of particular region. The limitation will be regulated by the Government Regulation,” Herman said at the House plenary session.

The law requires the government to issue three Government Regulations (PP) and ten Ministerial Decrees. Some industry players have said earlier that the limitation of ownership could discourage foreign investors to invest in plantation industry. (*)

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