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Palm Oil Fine in Forest Regions

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Palm Oil Fine in Forest Regions

InfoSAWIT, JAKARTA - The government should face dilemma – saving forests and or palm oil plantation companies. Bleaching is chosen by getting administrative sanction fine. That is why it is very important to be transparent in realizing the policy

The government faces dilemma to improve palm oil plantation and forest governance. The dilemma is about to save the rests of forests in Indonesia that lay on about 125,8 million hectares or to save palm oil plantation industries that illegally operate in forest regions by having administrative sanction fine through non-tax revenue (NTR).

In forestry and area sectors, the government published policy to get green-house gas reduction to control climate changes through “Indonesia’s FOLU Net Sink 2030” which is regulated by President’s Regulation Number 98 / 2021 with the target - net zero emission in 2030.

On the other hand, the publication of Undang-Undang Cipta Kerja (UUCK) delivered good news for stakeholders that illegally operated in forest regions particularly in palm oil sectors. Chapter 110A and 110B UUCK deliver easiness to get amnesty or bleaching for palm oil plantation business in forest regions before UUCK was published until 2 November 2023 or three years since UUCK was published.

The bleaching meant is about to free every stakeholder from forestry criminal sanction regulated in the Laws Number 41 / 1999 about Forestry and the Laws Number 18 / 2013 about Forest Damage Eradication and Prevention. As the change, the stakeholders are obliged to pay administrative fine in the form of PSDH-DR (Provisi Sumber Daya Hutan - Dana Reboisasi) in Chapter 110A UUCK and administrative fine in PNBP (Pendapatan Negara Bukan Pajak) or non-tax revenue (NTR) in forestry sector that is calculated by its own formula according to Chapter 110B UUCK.

Ministry of Environment and Forestry got inventory about palm oil plantations in forest regions. They laid on about 3,4 million hectares. 6,72 million hectares or 41 percent were the smallholders’ plantations and 9,66 million hectares or 59 percent were belonging to big private and government’s companies.

MEF also confirmed that since June 2011 to August 2023 the institution published 14 decisions of Minister of Environment and Forestry that contained 3.257 legal subjects of stakeholders in forest regions. They were companies, personals, smallholders’ groups, cooperation, villages, district/city, provinces, and central institutions. The legal subjects were in Riau Province the most and then in Central Kalimantan Province.

From palm oil plantation mastery in forest regions, it was found that 2,1 million hectares or 61,76 percent were belonging to big private and government’s companies while 1,3 million hectares or 38,23 percent were belonging to smallholders in the forms of personal, groups, and union.(*)

Ahmad Zazali, SH., MH./Chairman of Pusat Hukum dan Resolusi Konflik (PURAKA)

for more, please read Majalah InfoSAWIT, Novembr 2023