Revrisond Baswir from state Gajahmada University said here on Thursday that "state-owned plantation companies only own 7.8 percent of oil palm plantations nationally."
He said Indonesia at present has 7.5 million hectares of oil palm plantations and 40 percent of them belong to the people while the national palm oil industries only control 7.8 percent and the rest belongs to private enterprises.
He said he believed the growth in foreign ownership was partly caused by local governments that had easily produced licenses to foreign investors in the current decentralization era.
He said foreign companies often neglect the welfare of the people because they have often not seriously helped plasm farmers.
Riau deputy governor Mambang Mit shared his view saying that foreign ownership has been increasing and they usually use Indonesian citizens to help open new plantations.
In Riau oil palm plantations now reach 2.2 million hectares equal the numbers in Malaysia. However Malaysia has been more advanced in the development of downstream industries, he said.
He said exports of palm oil from Riau have so far been controlled by Malaysia.
"Malaysia even has opened plantations in Riau when it has no more land for extension but the biggest profit remains going to them," he said. (*)
Editor: Kunto Wibisono
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