InfoSAWIT, JAKARTA – The Indonesian Ombudsman has highlighted the plan by the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) to require palm oil companies to provide 30% plasma land when applying for the renewal of their Business Use Rights (HGU) for 35 years. The Ombudsman views this policy as potentially leading to maladministration as it contradicts existing regulations.
Ombudsman RI member Yeka Hendra Fatika emphasized that the ATR/BPN Ministry should adhere to current regulations, which currently stipulate a plasma requirement of 20%. "They must comply with the rules. If the regulation states 20%, then it should be 20%, or change the regulation first. If the law wants 30% or 40%, then go ahead. But if the law states 20%, it must be 20%," Yeka asserted in a statement at the Ombudsman Office in Jakarta, as reported by InfoSAWIT on Wednesday (February 5, 2025).
Several regulations governing the 20% plasma requirement for HGU holders in the palm oil industry include Law No. 11 of 2020 on Job Creation. Article 58 of the Job Creation Law states that plantation companies obtaining cultivation business licenses from other land use areas or forest area releases must facilitate the development of community plantations around the area equal to 20% of the land area.
Additionally, other regulations supporting this provision can be found in Minister of Agriculture Regulation No. 26 of 2007 Article 11 Paragraph 1, Minister of Agriculture Regulation No. 98 of 2013 Article 15 Paragraph 1, and Law No. 39 of 2014 on Plantations Article 58.
According to Yeka, although Minister of ATR/BPN Nusron Wahid plans to implement this policy to support farmers, it must still refer to the applicable legal framework. If the policy is enforced without a clear legal basis, it could be categorized as maladministration. "Maladministration means," Yeka stressed, adding that the policy could also create legal uncertainty.
Therefore, the Ombudsman RI recommends that before the 30% plasma policy is implemented, a thorough study and further discussions with various parties should be conducted to ensure compliance with existing regulations and avoid potential legal disputes in the future. (T2)
