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In 100 Working Days, Minister of AAS/Head of NLA Would Discipline 537 Palm Oil Companies Having No Business Rights



Doc. of InfoSAWIT/Screen shot of the meeting between Minister of Agrarian Affairs and Spatial/Head of National Land Agency and Commission II Indonesian Legislators, Wednesday (30/10/2024) in Jakarta.
In 100 Working Days, Minister of AAS/Head of NLA Would Discipline 537 Palm Oil Companies Having No Business Rights

InfoSAWIT, JAKARTA – Minister of Agrarian Affairs and Spatial (AAS)/Head of National Land Agency (NLA), Nusron Wahid mentioned the big plans of the ministry to re – improve the extension and renewal of business rights namely in palm oil plantation sectors. This would be the main focus in his 100 working days and the goal would be about to create the area equity access while maintaining the economic sustainability nationally.

“Our target would be about to re-manage the system of publishing, extension, and renewal of business rights by prioritizing the equity but still maintaining the sustainable economy,” Nusron said in the meeting with Commission II Indonesian Legislators that InfoSAWIT watched, Thursday (31/10/2024).

Nusron thought this would be the same with Undang-Undang Pokok Agraria (UUPA) Chapter 29 paragraph 1 that business permit would last for about 25 years and in a certain condition, it could be extended up to 35 years, just like palm oil plantation that would spend longer. Paragraph 3 of the laws also mentions that business permits could be extended for the additional period, 24 years.

The renewal was also described in Undang-Undang Cipta Kerja that got additional option to extend up to 35 years after the business permit is over. Nusron said by the new laws, we would like to confirm the sustainability of plantations that got the permits. “And confirm every extension process and renewal would fairly implement,” he said.

One significant thing in his 100 working days, would be to accomplish business rights certification publication for 537 entities that got plantation business permit in palm oil sector. He referred to the substitution of Chapter 40 - 41 Plantation Laws Number 39 / 2014 that was revised by the sentence of Constitutional Court in 2016. The substitution mentioned that plantation companies that planted palm oil should have the plantation business permits and business rights at once. This delivered impacts for many companies that got only plantation business permit.

About 2,5 million hectares of palm oil plantations are cultivated by the companies that got plantation business permit without having business rights. Nusron emphasized the ministry would discipline the business rights of the companies with the exception, those that operated in mangrove forests or other protected areas because they would be coordinated by other authorities.

By the new policy, it is hoped there would be balance among the legal certainty and sustainable economy, and area equity in plantation sectors. (T2)


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