New Indonesian Plantations Law passed

Introduction

The Indonesian Parliament rushed through a controversial New Plantations Law at the end of September 2014.

As reported on 23 September ( Restrictions on Foreign Shareholdings in Indonesian Plantations), the sticking points were:

• foreigners could hold 30 per cent only in Indonesian plantation companies; and
• if foreigners held more than 30 per cent in Indonesian plantation companies, the foreigners would be required to sell down their shareholdings within five years.

These points disappeared in the ultimate law, but are far from resolved. The New Plantations Law merely puts the issue of foreign shareholder limitations on hold.

Foreign investment restrictions?