Indonesia’s recent plan to acquire Cambodian rice companies to shore up its supplies may hit a snag due to export restrictions and local land ownership laws, experts say.
Bulog, a state-owned logistics agency, has begun talks with several Cambodian rice companies and some Indonesian banks about the acquisition plans. Bulog president director Bayu Krisnamurthi told The Straits Times that it is still early days and the matter will be discussed with all relevant parties in stages.
The wheels were set in motion after outgoing President Joko Widodo asked Bulog on June 10 to consider acquiring a rice producer in Cambodia to ensure that the country’s rice reserves are at a “safe level”.
