InfoSAWIT, SAMPIT – The Chairman of the Duta Civil Society Organization (LSM), Yunan Nasution Amh, who is also an activist in Kotawaringin Timur Regency, expressed his support for the Employment Network Forum for Sustainable Palm Oil (Jaga Sawitan) in reminding the government about the impacts of Presidential Regulation (Perpres) No. 5 of 2025 concerning the Regulation of Forest Areas.
In the List of SK. No. 36 from the Ministry of Forestry in 2025, dozens of companies are recorded as having been established within forest areas in Kotawaringin Timur Regency, Central Kalimantan. Yunan emphasized that this regulation was created with good intentions, but its implementation must consider the impact on the palm oil industry and its workers.
"In principle, this regulation was made for good purposes. However, what needs to be considered is the impact of implementing this Presidential Regulation so that it does not harm palm oil industry players, including workers," Yunan told InfoSAWIT on Thursday (March 6, 2025).
He stated that palm oil plantations in Kotawaringin Timur significantly contribute to the local economy and are a source of foreign exchange for the country. Approximately 70 percent of the workforce in palm oil plantations consists of local residents. Therefore, policies that impose administrative sanctions up to the revocation of business licenses for companies operating in forest areas could potentially increase unemployment rates.
"If the government imposes administrative sanctions up to the revocation of licenses against companies that have already been operating in forest areas, it is likely that unemployment rates will rise. I hope the government can find solutions for companies that have managed these lands," he added.
He also emphasized that this policy could impact the fate of palm oil workers. If companies suffer losses due to this policy, mass layoffs could occur.
Referring to documents from the Indonesian House of Representatives, Perpres 5/2025 aims to improve the governance of mining, plantation, and other sectors operating in forest areas, as well as optimize state revenue. The regulation of forest areas includes the collection of fines for violators, the reclaiming of misused forest areas, and the recovery of assets to be used according to their functions.
This regulation applies to both companies and individuals with varying sanctions. Nevertheless, Yunan stressed that this policy must consider its impact on labor and the local economy to avoid creating larger social problems. (T1)
