InfoSAWIT, JAKARTA — Doris Monica Sari Turnip, representing the Director of Processing and Marketing of Plantation Products (PPHP Bun), affirmed the government’s commitment to ensuring that community plantation development aligns with principles of profitability, respect, and responsibility. Since 2007, the government has mandated this through Minister of Agriculture Regulation (Permentan) No. 26 of 2007 on Guidelines for Plantation Business Licensing, which requires plantation license holders to allocate 20% of their cultivated area for community plantations. This regulation was later updated with Permentan No. 98 of 2013, which further specifies the partnership models required for plantation companies.

These partnerships encompass the entire production chain, from processing outputs to support services, not just product processing. Doris explained that partnership agreements must last at least four years, with a core aim of providing sustainable income to local communities.

However, the process has encountered challenges. Many plantation companies, particularly those that received licenses before stricter regulations were enforced, have yet to fully comply with this requirement. In response, the government encourages these companies to fulfill their obligations, even if delayed.

Following the enactment of Job Creation Law No. 11 of 2020, and its 2023 update, this obligation has been reinforced. The government stipulates that companies yet to meet community plantation development requirements must do so within three years from their license issuance date.

Through various regulations, including Permentan No. 18 of 2021 on Facilitating Community Plantation Development, the government aims to ensure that plantation companies not only seek profit but also contribute meaningfully to empowering surrounding communities. Doris emphasized that these partnerships must be executed with principles of mutual benefit, respect, and accountability. (T2)