Palm oil industry liberalized<\/p>\n
JAKARTA (JP): The government will soon issue technical
\ndirectives for the liberalization of foreign investments in the
\npalm oil industry, Agriculture Minister Sjarifudin Baharsjah said
\nhere yesterday.<\/p>\n
Baharsjah said after a meeting with President Soeharto that
\nthe new directives, being prepared jointly with other related
\nministries, would simplify licensing procedures for foreign
\ninvestment in oil palm plantations.<\/p>\n
\"We will, however, direct most new investments in the palm oil
\nsector to the eastern provinces where land resources are quite
\nabundant,\" he added.<\/p>\n
As land in the western part of the country was already fully
\nutilized, it was better and commercially more viable for new
\ninvestors to open plantations in the eastern region, he said.<\/p>\n
The government revoked a freeze on new foreign investment in
\nthe palm oil industry, imposed early last year in a bid to
\nprotect domestic companies and prevent excessive land acquisition
\nby foreigners, as part of a new reform package agreed with the
\nInternational Monetary Fund on Jan. 15.<\/p>\n
Malaysia is the biggest foreign investor in oil palm estates
\nin the country. Before the freeze Malaysian companies had signed
\njoint venture agreements to develop 1.5 million hectares of oil
\npalm estates, mainly in Sumatra and West Kalimantan.<\/p>\n
Data from the directorate general of plantations put
\nIndonesia's oil palm estates at more than 2.4 million hectares as
\nof last year.<\/p>\n
The Jan. 15 reform package stipulates, among other things,
\nthat foreign investments will be allowed in oil palm estates from
\nFeb. 1 and the ban on exports of crude palm oil and its
\nderivatives will be lifted in April.<\/p>\n
\"We will soon issue a joint ministerial decree to enforce the
\nnew liberalization policy so as to remove any doubts among
\nforeign investors,\" Baharsjah added.<\/p>\n
The minister also disclosed yesterday a government decision to
\nraise the producer (floor) price of unhusked rice from Rp 525 to
\nRp 600 per kilogram, or 14.28 percent.<\/p>\n
However the price of urea fertilizer will not be raised so as
\nto provide a meaningful price incentive to rice growers.<\/p>\n
\"What is important that the price of urea fertilizer will not
\nbe raised,\" he said.<\/p>\n
The rice price increase, when adjusted for the 11 percent
\ninflation in 1997, amounts to a real rise of only 3.28 percent.<\/p>\n
Baharsjah said recently that the production of unhusked rice
\nwould most likely increase to 53 million tons this year from 49.3
\nmillion tons last year.<\/p>\n
Baharsjah made his estimate on the assumption that rice
\nacreage, which was seven million hectares during the 1997\/1998
\nplanting season, would increase to 11 million hectares this year.<\/p>\n
In anticipation of rice shortages, the government has ordered
\nmore than two million tons of husked rice from major suppliers
\nsuch as Thailand and Vietnam. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/palm-oil-industry-liberalized-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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