PALMOILMAGAZINE, JAKARTA – Minister of Agrarian Affairs and Spatial Planning (AAS) and Head of the National Land Agency (NLA), Nusron Wahid, outlined the ministry’s plans to enhance the extension and renewal of business rights, particularly in the palm oil plantation sector. This initiative will be a key focus during his first 100 days in office, aiming to promote equitable land access while ensuring national economic sustainability.
“Our goal is to revamp the system for issuing, extending, and renewing business rights, prioritizing equity while maintaining sustainable economic practices,” Nusron stated during a meeting with Commission II of the Indonesian Legislature, as reported by Palmoilmagazine.com on Thursday (31/10/2024).
Nusron emphasized that this initiative aligns with the Agrarian Law (UUPA), specifically Chapter 29, Paragraph 1, which stipulates that business permits last for 25 years and can be extended for up to 35 years under certain conditions, as seen in the palm oil sector. Paragraph 3 of the law also allows for a 24-year extension.
The renewal process is also covered under the Omnibus Law (Undang-Undang Cipta Kerja), which offers an additional extension option of up to 35 years after the permit expires. Nusron highlighted that these changes are designed to ensure the sustainability of plantations granted permits and to make sure that the process of extension and renewal is carried out fairly.
A significant target for Nusron’s first 100 days is to finalize the business rights certification for 537 plantation entities holding permits in the palm oil sector. This initiative stems from a revision in the 2014 Plantation Law (No. 39/2014), following a Constitutional Court decision in 2016. The revision requires palm oil plantation companies to hold both plantation business permits and business rights simultaneously, impacting many companies that previously held only business permits.
About 2,5 million hectares of palm oil plantations are cultivated by the companies that got plantation business permit without having business rights. Nusron emphasized the ministry would discipline the business rights of the companies with the exception, those that operated in mangrove forests or other protected areas because they would be coordinated by other authorities.
By the new policy, it is hoped there would be balance among the legal certainty and sustainable economy, and area equity in plantation sectors. (P2)
