Enhancing Effective Coordination to Improve Palm Oil Governance in Indonesia

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Illustration of palm oil plantation . Photo by: Sawit Fest 2021 / Yayan Saputra

PALMOILMAGAZINE, JAKARTA – Improving governance in Indonesia’s palm oil industry presents a significant challenge that necessitates robust collaboration among relevant institutions and ministries. Professor Budi Mulyanto, the Head of Palm Oil Studies Center at Bogor Agricultural University (IPB), underscored the complexity of contemporary challenges.

“The formidable hurdles confronting Indonesia demand a more streamlined approach to palm oil governance. It’s imperative for every sector to collaborate synergistically, transcending sectoral boundaries,” stated Prof. Mulyanto on Monday (25/3/2024).

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He acknowledged the distinctive regulations and permit systems of each ministry and institution, rooted in their respective mandates. However, the intricacies of palm oil governance persistently interconnect, highlighting the indispensable need for effective coordination between central and regional authorities.

Also Read: The Symbiotic Relationship Between Palm Oil Plantation Development and Research-Driven Downstream Industries

Despite ministries issuing norms, standards, guidelines, and criteria concerning palm oil governance, their implementation often falters at the regional level due to diverse perceptions and regional autonomy. Prof. Mulyanto stressed the significance of fostering robust policy connectivity and coordination among stakeholders.

“To accomplish palm oil (plantation) issues, it needs firmness so that every ministry and instance would not be stuck in their own regulation and should be neutral,” he said, as Palmoilmagazine.com quoted from the official page of Ministry of Agriculture, Thursday (28/3/2024).

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One thing that Ministry of Agriculture keeps doing is to find the strategic solutions in what palm oil plantations/industries are facing, such as, development reinforcement, available permit mechanism policies.

According to the Laws Number 39 / 2014 about Plantation that was substituted by the Laws Number 6 / 2023, plantation business permit was published by the governor in one region across regency/city and by regent/mayor for one region in regency/city. But if it would be operating in some provinces, the permit should be published by minister(s).

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Development and monitoring to plantation business should always continue with the coordination among the central and regional government and through integrated information system, such as, Sistem Informasi Perizinan Perkebunan (Siperibun).

“The good coordination should always exist with the synergy among the central and regional government because the regional governments are the direct actor from every published policy,” Budi said. (T2)

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