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Time for the Government: Claim the Mills without Plantations



Doc. InfoSAWIT
Time for the Government: Claim the Mills without Plantations

InfoSAWIT, JAKARTA – Many parties urged the government to firmly claim the phenomenon – palm oil mills without plantations that have no partnership from the local authority.

Professor in economy from Universitas Riau, Prof. Almasdi Syahza emphasized that publishing palm oil mill should obey every available regulation. If the mill breaks the regulation, there would be future issues.

“The distance among the mill, partnership, and regional capacity should become consideration by having feasibility study,” he said in an official statement in Jakarta, on Wednesday.

He told that because mill construction permits escalated heading to regional election by not considering regional capacity but ignoring every available regulation.

In the Regulation of Minister of Agriculture Number 98 / 2013 about Plantation Business Permit Guidelines, a mill should have its own plantation or gets partnership with smallholders to fulfill the materials (in mill) at least 20 percent.

“If the permits were published in association with politics, the impact would be happening after the 2024 regional election. The violence would be the material for political opponent to attack,” Almasi said, as InfoSAWIT quoted from Antara, Thursday (28/3/2024).

He thought, the mills without plantations would disturb palm oil governance which runs well. That is why he emphasized it needs firm action from the central and regional governments to implement the regulations.

Former Head of Plantation Central Kalimantan Province, Rawing Rambang told that even though the government published palm oil mill permits with no plantations, the mill is obliged to get partnership with smallholders. “By the partnership, the mill would monitor the source of its fresh fruit bunch (FFB) production,” he said.

He also told that head of a government, from the regent to governor, should confirm that there would be cooperation or partnership before publishing mill construction permit.

“Regional government should verify it because it would be dangerous if it is unknown,” he told.

Rawing continued by having information about partnership, the regional government could make sure the capacity, availability in the mill to get FFB material from the villagers.

On the other hand, environment economic expert, Dr. Riyadi Mustofa told after Undang-Undang Cipta Kerja was published, mill construction process would be closer from environmental perspective.

“The regional government plays central roes to monitor the permit process in environment impact for the mill(s) to be constructed. This is about to confirm that it would obey every available regulation,” he said. (T2)

 

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