PALMOILMAGAZINE, KOTAWARINGIN TIMUR – The Indonesian Ombudsman conducted a field inspection of several palm oil plantations in the Regency of Kotawaringin Timur (Kotim) as part of a systemic study to address issues of maladministration in the palm oil industry.
The inspection, which involved representatives from relevant ministries, institutions, and stakeholders, aimed to evaluate the direct implementation of regulations on the ground.
Yeka Hendra Fatika, a member of the Ombudsman RI, reported finding indications of maladministration in palm oil industry governance, including issues with overlapping regulations.
Also Read: Ombudsman: Indications of Maladministration in Palm Oil Industry Governance
“We need to collaborate with other stakeholders to understand how regulations are being implemented in practice,” Fatika said, according to an official statement provided to Palmoilmagazine.com on Friday, August 23, 2024.
The first site visited was the palm oil plantations of PT Kantingan Indah Utama (KIU) in Kabuau Village, Parenggean Subdistrict. The Ombudsman received complaints regarding unresolved issues related to forest area release, despite PT KIU having settled its debts under Undang-Undang Cipta Kerja Chapter 110A nine months ago.
The next was in the palm oil gathering spots. It was found that many stakeholders did not re-measure their scale. After having it, there were gaps about two ounces that delivered profits for the stakeholders.
The visit to PT Pelantaran Sawit Perkasa (PSP) in Village of Bukit Batu, Sub district of Cempaga Hulu found the fraud potential in fresh fruit bunch (FFB) scale. Even though the legal metrology unit re-measured the scale, the machine has no seal. This would be a worry for having inaccurate scale.
From the document check at PT PSP, it was found that the company was registered in the Ministry of Agriculture and Ministry of Industry. Ministry of Industry suggested the company to officially send documents to improve the code about kernel industry, while Ministry of Agriculture suggested to get plantation business permits, namely about the cooperation documents.
The last visit was in the palm oil plantations of Koperasi Bukit Lestari in Village of Bukit Batu. Ombudsman found that the 851 hectare – palm oil plantations were in forest areas and only got land documents that 192 smallholders got. Even though the cooperation would cultivate the areas since 2021 independently, their plans should get stuck for unclear area status while replanting program should be immediately conducted in the next five years because the trees have been 20 years old. (P2)
