Sime Darby has contingency plan prepared for Indonesian cap on foreign ownership
Oil palm fruit (Photo: LifeMosaic)
Sime Darby Bhd, which expects the price of crude palm oil (CPO) to hover between RM1,900 and RM2,200 a tonne in the remaining months of the year, has a contingency plan ready for a possible change in legislation on foreign ownership of plantation land in Indonesia.
If the bill is passed, president and group chief executive Tan Sri Mohd Bakke Salleh (pix) said, the group will have to comply with it. News of a possible new reduced limit to foreign ownership of plantations in Indonesia to 30% from 95% broke in mid-August. (...)
The group's Indonesian plantation currently makes up about 40% of its total plantation size.
