Flash News

Stakeholders Face Uncertainty in Law about Area Legal Regulation

Stakeholders Face Uncertainty in Law about Area Legal Regulation

InfoSAWIT, SURABAYA – Palm oil industries in Indonesia face serious challenges about palm oil plantation legal in forest regions. Data in 2021 showed that of total 3,3 million hectares palm oil plantation in forest regions, only few got decision about forest release.

This would be uncertain for planters (stakeholders), particularly those joining Indonesian Palm Oil Association (IPOA) and Asosiasi Petani Kelapa Sawit Indonesia (Apksasindo).

Chairman of Perhimpunan Ekonomi Pertanian Indonesia (Perhepi), Bustanul Arifin said that President’s Regulation Number 9 / 2023 mandated palm oil governance taskforce to solve the issue about overlapping areas and confirm palm oil “too late’ in forest regions.

Unfortunately, at the same time, many stakeholders faced uncertainty because of the implementation of Laws Number 6 / 2023 about the Establishment of Government Regulation in lieu of Law Number 2 / 2022 about Cipta Kerja, particularly Chapter 110A and Chapter 110B. “Administration fine that would be charged on to area owner in forest regions would raise many interpretations. This would multiply complexity of the issues,” he said as the speaker in Pekan Riset Sawit Indonesia (PERISAI) 2023 in Surabaya that InfoSAWIT attended, Thursday (26/102023).

Though rights on land would not directly attach with Chapter 110A and 110B in UU Cipta Kerja, it is clearly regulated in UUPA 5 / 1960 and its additional regulation. The plantations that got complete permits, particularly business rights would need strong legal protection to protect their investment. The sentence of Supreme Court Number 03/HUM/2013 on 30 July 2013 confirmed that business rights is not part of forest regions. It confirms the arguments about legal protection for official palm oil plantation owners.

Meanwhile Government’s Regulation 23 / 2021 about Forestry Administrator propsed to solve ‘too late’ palm oil plantations in forestry regions by having Strategi Jangka Benah. This could be the anticipation to revitalize forest regions that have changed the function to be palm oil plantations.

“The strategy needs acceptance and smallholders’ resilience, preparedness of social economy to face the change of environment and regulation,” Bustanul said. (T2)