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ATR/BPN Ensures Palm Oil Plasma Allocation Increases to 30% for HGU Renewals



Doc. InfoSAWIT/In a working meeting with Commission II of the Indonesian House of Representatives on January 30, 2025, the ATR/BPN Ministry announced a new policy regarding HGU renewals.
ATR/BPN Ensures Palm Oil Plasma Allocation Increases to 30% for HGU Renewals

InfoSAWIT, JAKARTA – In a working meeting with Commission II of the Indonesian House of Representatives on January 30, 2025, the ATR/BPN Ministry announced a new policy regarding HGU renewals, increasing the palm oil plasma allocation from 20% to 30%.

Minister Nusron Wahid stated that for HGU renewals, the government has set an additional plasma allocation of 10%, bringing the total allocation to 30%. This policy aims to ensure that local communities receive greater benefits from land management.

"Holders of HGU who have enjoyed the land for 60 years (35 years + 25 years extension) and apply for renewal for another 35 years must provide an additional 10% plasma allocation. This is to ensure justice for the community," Nusron emphasized during the working meeting.

Nusron acknowledged that this policy may not be favored by HGU holders. However, he stressed that this step is necessary to prevent large-scale land ownership by a handful of companies.

"Currently, around 16 million hectares of land are controlled by 2,869 companies. If no changes are made, this inequality will continue. We want more farmers to benefit from land management," he stated.

In addition to plasma allocation, the government is also encouraging farmer involvement in the supply chain of companies, such as transportation and fertilizer procurement. This initiative is expected to enhance community participation in economic activities.

This new policy reflects the government's commitment to creating a more equitable and sustainable land management system. By prioritizing principles of justice and equity, the government hopes to improve farmers' welfare while maintaining national economic growth.

"This is a significant step towards agrarian justice. We believe that with this policy, farmers will be more prosperous, and the national economy will continue to grow sustainably," Nusron concluded. (T2)

 

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