Trade and markets
 

Detail

Area
Indonesia
Commodity Group
Oilseeds, oils and meals
Commodity
Palm oil
Date
01/10/2014
Policy Category
Production
Policy Instrument
Land rights
Description
Approved plantation ownership regulation with aim to maximize land usage while ensuring adequate participation of smallholders in the plantation sector.
Notes
The government has approved comprehensive legislation regulating plantation ownership across the country. The new bill aims at maximizing land usage while ensuring adequate participation of smallholders in the plantation sector. All plantation firms are required to allocate 20% of their land to local farmers and to assist the latter in setting up their own plantations. Companies have been given five years to comply with the new rules. A controversial clause that would have drastically limited foreign ownership has been dropped from the final bill (see also MPPU Sep.’14). A law introduced last year to limit the size of new plantations to 100 000 hectares complements the bill (see MPPU Nov.’13).