PALMOILMAGAZINE, PALEMBANG – Fara Heliantinamm, Deputy Assistant of Investment Services at the Coordinating Ministry for Maritime Affairs and Investment, reported that the palm oil task force has identified several companies failing to meet their obligations, such as securing business rights and implementing Fasilitas Pembangunan Kebun Masyarakat (FPKM).
Data from the Sistim Informasi Perijinan Perkebunan (Siperibun) reveals that 537 companies have been operating without the necessary business permits, which they have been required to obtain since 2016.
“According to Siperibun, 537 companies have not acquired business rights, despite this being a mandatory requirement before commencing plantation activities,” Fara stated during a regulatory workshop and coaching clinic on business rights and FPKM at the Graha Bina Praja Auditorium in South Sumatra, organized by the Task Force for Improving Palm Oil Industry Governance and Optimizing Revenue on Thursday, July 25, 2024.
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He added that, in South Sumatra Province alone, about 50 companies lack business rights. The Ministry of Agrarian Affairs and Spatial/National Land Agency is expected to provide a detailed report on this issue.
That is why the province is in the third rank in Indonesia where the companies do not get the business permit after Kepulauan Riau and West Kalimantan. He also emphasized it would be important to get collaboration among the task force, regional governments, initiation from the governor in duty to accelerate socialization and accomplish the issue before the end of this year.
Governor in duty of South Sumatera, Elen Setiadi emphasized the event would be very important in the context to solve the legal about palm oil governance in the province. “Palm oil is strategic commodity and significantly delivering the economic impacts for the province, besides mining,” Elen said when delivering speech that Palmoilmagazine.com quoted from the official page of South Sumatera Province, Saturday (27/7/2024).
The event was also attended by Director of Plantation Product Marketing and Process Ministry of Agriculture, Prayudi Syamsuri, and the officials from the regional governments, the representatives of Indonesian Palm Oil Association South Sumatera.
By having many activities and efforts, South Sumatera is hoped to immediately solve the obligations of the companies to get business rights and implement FPKM to support the better palm oil industrial governance in the future. (P2)
