Indonesia’s plantation sector move may affect M’sian companies

Indonesian lawmakers are looking to restrict foreign ownership of plantations to no more than 30% from a maximum of 95% currently - AFP Photo.

KUALA LUMPUR: Malaysian companies that own plantations in Indonesia are most likely to the biggest losers if the government's plan to cap foreign ownership materialises.

RHB Research said the proposed move would impact Malaysian companies such as Sime Darby Bhd, Kuala Lumpur Kepong Bhd and TSH Resources Bhd, which are receiving significant earnings contributions from their Indonesian operations.