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ATR/BPN Minister Reports New Plasma Allocation Policy for HGU Applications



Doc. InfoSAWIT/inister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Nusron Wahid.
ATR/BPN Minister Reports New Plasma Allocation Policy for HGU Applications

InfoSAWIT, JAKARTA – Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Nusron Wahid, reported on the achievements of the first 100 days of the government in restructuring the system for granting, extending, and renewing Business Use Rights (HGU). This policy is designed to ensure compliance with Law No. 5 of 1960 while prioritizing principles of justice, equity, and economic sustainability.

In a working meeting with Commission II of the Indonesian House of Representatives on January 30, 2025, Nusron explained that the HGU is granted for a maximum period of 35 years and can be extended for up to 25 years. After this period, the rights holder can apply for HGU renewal on the same land for a maximum of 35 years.

One significant change in this new policy is the increase in plasma allocation for the community. Nusron emphasized that companies applying for HGU extension or renewal must provide a 20% plasma allocation for farmers. Additionally, companies are required to enhance their corporate social responsibility (CSR).

"In the past, plasma was only promised after HGU extension. However, from now on, plasma must be provided upfront with a minimum allocation of 20% for new rights holders," Nusron asserted.

For HGU extensions, in addition to the 20% plasma allocation, companies must also demonstrate that they have cooperated well with plasma farmers. Nusron criticized previous practices where plasma was often managed by company employee cooperatives rather than by independent farmers.

"We want to ensure that plasma is genuinely managed by farmers, not by company employee cooperatives. This is crucial for creating justice and equity," he stated.

To address challenges in areas with few plasma farmers, the government has partnered with the Ministry of Transmigration. Nusron explained that the transmigration program will be used to create new plasma farmers who can manage land independently.

"We have been directed by the President to collaborate with the Ministry of Transmigration. This will ensure that there are plasma farmers ready to manage the land, especially for HGU extensions and renewals," he clarified. (T2)

 

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