Palm Oil Plantations are a really lucrative agricultural business for agriculture entrepreneurs and businesses to put money into. The potential in this company makes palm oil one of the most significant revenue streams in Indonesia.
The procedure for acquisition or take over of plantations, particularly oil palm plantations, isn't as simple as imagined.
Considering that trades in the property industry, particularly the take-over of oil palm plantations, contain very significant capital company and involve many parties as mediators, the authorities in this case the Minister of Trade of the Republic of Indonesia believes the need to create rules to protect the rights and duties of the parties involved through the Minister of Trade Legislation of the Republic of Indonesia no. 33 / M-DAG / PER / 8/2008 regarding Brokerage Company of Property Trade.
However, though there are regulations governing trade transactions, it's not unusual for a trade to be overly convoluted and less cooperative between mediators, so the take-over process really becomes ineffective or completely void.
Listed below are steps to get a palm oil plantation in Indonesia
First, get in touch with a reliable brokerage company and ask if they've palm oil plantations to market. Do not contact individual agents since they might not have the whole detail on particular plantations, and generally they aren't clear with the actual connection to the accessible farm. Such cases often occur in Indonesia and you need to make certain the plantations don't have any legal issues.
Second, ask the broker firm to perform the due diligence so you avoid future legal problems in Indonesia. A trusted brokerage firm should have qualified survey tools like drone mapping and a trusted agronomist / business analyst staff.
Third, make sure that the selling price of this plantation is fair. Just about all individual agents markup the original cost around 30%. You should be cautious in doing business with these kinds of individual brokers due to the sort of lack of transparency. In this case you want to appoint a trustworthy broker to represent you at the take-over procedure. A normal commission fee of 1-3percent ought to be anticipated from the farm selling facet.