New Indonesian plan to limit foreign ownership will hurt Malaysian firms

Malaysian planters could consider mergers with Indonesian peers to reduce equity stakes in response to Indonesia's plan to restrict foreign ownership. - AFP

PETALING JAYA: Malaysian planters will be the biggest losers if Indonesia decides to restrict foreign ownership of plantation companies there to not more than 30% from the current 95%.

“The proposal will have the biggest impact on Malaysian-listed companies, as most of them have gone into Indonesia in a big way and are highly dependent on Indonesian operations for future growth,” UOB KayHian Research told clients in a report.