Malaysian investors in the Indonesian oil palm plantation sector: home state facilitation and transboundary haze
Document Type
Article
Publication Date
7-1-2012
Abstract
This paper analyses the regionalization of Malaysian oil palm plantation firms into Indonesia. These firms have been implicated in starting fires to clear land for planting, which has resulted in transboundary haze. This paper argues that these Malaysian investors have been able to burn with impunity, despite the dire consequences of haze on their home country, because of the close patronage relationships and vested interests of the Malaysian government elites in these companies. Because of this, the home government is inclined to protect and defend the actions of these firms in Indonesia against such allegations, while the Malaysian public continues to suffer the haze.
Keywords
Foreign direct investment, Indonesia, Malaysia, oil palm, patronage politics, regionalization
Divisions
arts
Funders
University of Malaya,University of Sydney
Publication Title
Asia Pacific Business Review
Volume
19
Issue
3
Publisher
Taylor & Francis