December 16, 2014

Indonesia is a major supplier of palm oil, rubber, coffee, cocoa, and teak but productivity is slowing, exports are declining, and growth is at a standstill. To instill confidence in the sectors and spark growth in its agricultural industries, Jakarta is planning various reforms including measure which will simplify the processes for investing in the palm oil industry through the increased cooperation of public bodies to create a ‘one stop shop’ for investors, and measures that will help agricultural investors acquire land. Jakarta also announced in October that it will form two holding companies to oversee Indonesia’s plantation and forestry operations. PT Perkebunan Nusantara (PTPN) III will oversee the country’s 14 plantations that produce palm oil, rubber, sugarcane, and tea and Perhuntani will oversee the country’s six forestry companies. This unification will improve the strength and financial performance of the industries and assets, resources, and procurements will be better leveraged. To read further:

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