KL firms get nod to develop oil palm estates<\/p>\n
JAKARTA (JP): Four Malaysian companies have been given the
\ngreen light to develop oil palm plantations in the country, a
\nminister said yesterday.<\/p>\n
State Minister of Investment Sanyoto Sastrowardoyo said
\nyesterday the companies had met the investment criteria for the
\noil palm plantation sector. He declined to give details about the
\ncompanies.<\/p>\n
He said they were the first group of foreign companies allowed
\nto open oil palm plantations in the country since the government
\nopened up the sector to foreign investors recently.<\/p>\n
This, he added, was because companies were required to fulfill
\nthe various criteria.<\/p>\n
"This includes the spatial planning and land feasibility
\ncriteria," he told media following a meeting with Coordinating
\nMinister for Economy, Finance and Industry Ginandjar
\nKartasasmita.<\/p>\n
He said the land slope must be not more than 25 percent;
\nannual rainfall between 1,750 mm and 4,000 mm; and temperature
\nbetween 24 degrees Celsius and 29 degrees Celsius.<\/p>\n
Last year, 10 foreign companies were reportedly outraged by
\nthe government's decision to freeze new licensing to foreign
\ninvestment in the country's oil palm plantation sector.<\/p>\n
The companies, which were said to have made initial
\ninvestment, planned to open a total of two million hectares of
\nplantations.<\/p>\n
Many considered the halt in new licensing was based on the
\ncountry's ambition to overtake Malaysia as the biggest crude palm
\noil producer in the world.<\/p>\n
But under the economic reform program sponsored by the
\nInternational Monetary Fund, Indonesia has been forced to once
\nagain open its oil palm plantation sector to foreign investors.<\/p>\n
As of January last year, the total foreign investment in the
\ncountry's palm oil plantation sector was US$3.3 billion on 2.1
\nmillion hectares of land. Of this, 1.5 million hectares was
\nunder Malaysian companies.<\/p>\n
Local investors accounted for 6.6 million hectares. (rei)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/kl-firms-get-nod-to-develop-oil-palm-estates-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }