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R.E.A Holdings PLC

Land tenure in Indonesia is complex, with distinct legal and customary systems for allocating land use rights administered by numerous authorities that operate at the national down to the sub-village level. This frequently results in overlapping claims to a particular area of land between companies and local communities as well as between villages and individuals. Consequently, an area of land leased to a company by the government for the purpose of oil palm cultivation will, almost without exception, be encumbered with an array of formal and informal land use rights.

REA takes care to ensure that all legitimate legal and customary land use rights are identified in a systematic manner prior to developing a new area of land. The group will only initiate land clearing if free, prior and informed consent (FPIC) is obtained from the holders of such rights, in return for which fair compensation is paid.