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Conflicting Regulations Stall Smallholder Palm Oil Development, Creating Complex Social Challenges



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Conflicting Regulations Stall Smallholder Palm Oil Development, Creating Complex Social Challenges

InfoSAWIT, JAKARTA - The push to establish 20% smallholder palm oil plantations in Seruyan has become increasingly complex, triggering a host of unintended issues, including a rise in illegal activities. Despite overlapping regulations from three different ministries, implementation has often led to confusion and unproductive clashes on the ground.

Albidinnor, Head of Food Security and Agriculture for Seruyan Regency, finds himself at a constant impasse despite his five years in the position. Numerous government regulations aimed at supporting the development of smallholder plantations often run into roadblocks, leaving him frequently traveling back and forth between ministries in search of workable solutions. Meanwhile, local communities continue to demand action, eager to see the promised smallholder plantations materialize in tandem with the expansion of large private palm oil estates in the region.

According to Albidinnor, one of the core challenges lies in the involvement of multiple ministries in agricultural sector regulation. The Ministry of Agriculture alone oversees several critical laws, such as Law No. 18 of 2012 on Food, Law No. 39 of 2014 on Plantations, and Law No. 6 of 2021 on International Conventions. However, Albidinnor feels these laws, while extensive, fall short in effectively supporting smallholder palm oil development.

“At the Ministry of Agriculture, we already have regulations ensuring that farmland comes directly from the community,” Albidinnor explained during an August 2024 workshop attended by InfoSAWIT in Jakarta. “But despite these existing regulations, implementation on the ground often hits a dead end.”

He highlighted Ministerial Circular No. 347, which categorizes land management periods before and after 2007. However, Albidinnor noted that this categorization lacks clarity and does not fully address the legal and practical challenges faced in the field. Regulations often fail to align with on-the-ground realities, particularly in remote areas where implementation becomes even more challenging.

This regulatory dissonance underscores the urgency for clearer, more cohesive policies to support smallholder initiatives and reduce community frustration. (*)

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