GAPKI Draft Law On Foreign Plantations Needs To Be Considered

Jakarta, Sept 11 (Antara) - Executive Director of the Association of Palm Oil Companies (GAPKI) Fadil Hasan said the restriction proposed in the draft law on foreign plantations needs to be reconsidered. "Proper consideration is needed as Indonesia still needs foreign investment to develop its economy," Fadil said here on Wednesday. The draft law calls for limited share of foreign investors in a plantations company, he said. "Through the draft law the House of Representatives imposes a restriction on foreign investment in plantation sector," he said. Under the draft law foreign shareholders may not have more than 30 percent of a plantation company. The restriction should not make the country less competitive in attracting foreign investment, Fadil said. In addition, Fadil said policy makers also need to think about the efficiency, adding competition would be tighter in the country as well as globally. "Other countries like Africa and Brazil have opened their doors for foreign investment in oil plantation," he said. He expressed fear that the restriction could cause business uncertainty and foreign investors may choose Brazil or other countries over Indonesia. Therefore, Gapki proposed that the restriction should not be regulated in a law, he said, adding it could be stipulated only in a government regulation.