Government won't cancel deal with KL firm despite protest<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nwill not cancel the recent sale of 25 oil palm plantations to
\nMalaysia's Kumpulan Guthrie Bhd despite protest from local
\nfarmers and politicians, said a senior official at the agency.<\/p>\n
IBRA deputy chairman Mahmuddin Yasin stressed on Tuesday that
\nthe transaction had been conducted in a transparent manner
\naccording to international standards.<\/p>\n
Mahmuddin also said the sale was part of the committment made
\nby the government to the International Monetary Fund as
\nstipulated in its letter of intent to the fund, and the proceeds
\nhad been used to help finance the 2000 state budget deficit.<\/p>\n
\"Canceling the sale will have serious consequences,\" he told
\nThe Jakarta Post in a brief interview.<\/p>\n
IBRA, a unit of the finance ministry, sold last November the
\nplantations, which were previously owned by the Salim Group, to
\nKumpulan Guthrie for US$350 million (Rp 3.6 trillion).<\/p>\n
The sale had helped the agency meet its target of raising at
\nleast Rp 19 trillion in cash to help finance the state budget.<\/p>\n
IBRA plans to sell more assets under its management this year
\nto raise some Rp 27 trillion in cash.<\/p>\n
The Salim Group, once the country's largest conglomerate,
\nsurrendered its ownership in over 100 companies to IBRA to repay
\nits Rp 52 trillion debt to the government.<\/p>\n
The plantations, covering 260,000 hectares, are located in
\nseveral provinces in Sumatra, Kalimantan and Sulawesi.<\/p>\n
Local farmers and several legislators in Jakarta had called on
\nthe government to cancel the sale amid claims that part of the
\nland belongs to the local people. Some have also claimed that the
\ntransaction had not been conducted transparently.<\/p>\n
Malaysia's International Trade and Industry Minister Rafidah
\nAziz is scheduled to visit Jakarta in March to discuss, among
\nothers, the problems faced by Malaysian plantation companies
\nhere.<\/p>\n
Reports said Rafidah hoped the government of Indonesia would
\nstand firm on the sale of the Salim Group plantations to Guthrie.<\/p>\n
Rafidah also wanted firmer action by Jakarta to protect
\nMalaysian plantation companies operating in Indonesia amid
\nreports of locals seizing large tracks of plantation land.<\/p>\n
Separately, director general of plantations Agus Pakpahan
\nvowed on Tuesday to seek a solution to the problems faced by
\nMalaysian plantation companies here.<\/p>\n
Agus told the Post he would arrange next week a meeting with
\nthe association of Malaysian plantation companies to discuss ways
\non how to solve the problem.<\/p>\n
\"We need to discuss the latest developments with them
\n(Malaysian plantation companies,\" he said.<\/p>\n
Agus said illegal \"land-grabbing\" of plantation land belonging
\nto state-owned companies and private companies by locals claiming
\nownership of the land had been occurring for the past two years.<\/p>\n
He acknowledged that the regional autonomy \"euphoria\" had
\nfurther intensified illegal annexation of land.<\/p>\n
The regional autonomy policy launched by the government
\nearlier this year grants greater power to provinces and regencies
\nto manage their own economic and social affairs.<\/p>\n
Agus said the illegal \"land-grabbing\" of plantation land was a
\nviolation of the property rights of investors. (rei\/03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-wont-cancel-deal-with-kl-firm-despite-protest-1447893297",
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