Law on Plantations, 2014 (Indonesia)

The implementation of the Law on Plantations aims to improve the welfare and prosperity of the people, increase sources of foreign exchange, provide employment and business opportunities, increase production, productivity, quality, value, competitiveness and market share, improve and meet the needs of consumer and industrial raw materials in the country, provide protection to the plantation business communities and society, manage and develop resources optimally, and increase utilization of plantation services. The Law directs every person who opens and cultivates land or grows plants for plantation purposes to follow procedures to prevent damage to the environment. A plantation business may be undertaken with Indonesia by a domestic or foreign investor. However, any transfer of ownership of a plantation company to a foreign investor must be approved by the Minister concerned. The Law also requires that plantation businesses of certain scales or plant capacities are required to have a plantation business permit. The Law also imposes an obligation on the Central Government to create conditions that produce favorable commodity prices.