InfoSAWIT, JAKARTA – The Ministry of Agriculture, through the Directorate General of Plantations, has issued Circular Letter No. 21/SE/PI.400/E/01/2025 regarding the Fulfillment of Obligations for Facilitating the Development of Surrounding Community Plantations (FPKMS) through Productive Business Activities. This policy reinforces the obligation of plantation companies to support surrounding communities through the development of plantations or other forms of productive businesses.
The circular refers to Minister of Agriculture Regulation No. 18 of 2021, which mandates plantation companies to facilitate the development of surrounding community plantations amounting to 20% of the total area of their business permits. This provision was also emphasized in the Decision of the Director General of Plantations No. 152/Kpts/HK.160/12/2023 and the Circular Letter of the Director General of Plantations No. B-347/KB.410/E/07/2023.
However, the implementation of this obligation is often hindered by the limited land available around plantation locations. Therefore, the new policy provides a solution by allowing companies to fulfill this obligation through other partnership forms, such as productive business activities.
In this circular, companies are given the flexibility to collaborate with communities in cultivating plantation commodities or other commodities, including rice, in line with government programs to achieve food self-sufficiency. Partnership activities include providing seeds, planting and maintaining crops, supplying fertilizers, and controlling plant pests, as well as providing labor and developing and maintaining facilities.
This circular also serves as a guide for governors, regents, and mayors in fostering and supervising companies' compliance with FPKMS obligations. Acting Director General of Plantations, Her u Tri Widarto, who signed the circular on January 8, 2025, emphasized the importance of implementing FPKMS through productive business activities to provide tangible benefits for surrounding communities.
“This circular aims to ensure that plantation companies fulfill their obligations under FPKMS while also promoting economic growth in local communities through productive business activities,” the circular states, as seen by InfoSAWIT on Friday (January 10, 2025).
This policy is expected to address the land constraints faced by companies while supporting economic equity in plantation areas. Through collaboration via productive partnerships, communities can directly benefit from the presence of plantation companies in their regions.
The new policy reflects the government's commitment to integrating sustainability, equity, and community empowerment into plantation management in Indonesia. (T2)
