PALMOILMAGAZINE, SAMPIT – Yunan Nasution Amh, Chairman of the NGO Duta and an activist in Kotawaringin Timur, has voiced his support for the Sustainable Palm Oil Employment Network Forum (Jaga Sawitan) in urging the government to consider the potential impacts of Presidential Regulation (Perpres) No. 5 of 2025 on Forest Area Regulation.
According to the Ministry of Forestry’s SK No. 36 of 2025, dozens of companies currently operate within forest areas in Kotawaringin Timur, Central Kalimantan. While acknowledging the good intentions behind the regulation, Yunan emphasized that its implementation should take into account its impact on the palm oil industry and its workforce.
“In principle, the regulation aims for a good purpose. However, its implementation must not harm industry players, including plantation workers,” Yunan told Palmoilmagazine.com on Thursday (March 6, 2025).
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He highlighted that palm oil plantations in Kotawaringin Timur significantly contribute to the regional economy and national revenue, with approximately 70% of the workforce consisting of local residents. Strict penalties, including administrative sanctions and business license revocations for companies operating within forest areas, could lead to higher unemployment rates.
“If the government enforces administrative sanctions and revokes permits for companies that have already been operating in forest areas, unemployment could rise sharply. I hope the government finds a viable solution for these businesses,” he added.
Yunan further stressed that such policies could severely affect palm oil workers. If companies face financial losses due to these regulations, mass layoffs (PHK) could become unavoidable.
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Referring to parliamentary documents, Perpres 5/2025 aims to improve governance in mining, plantations, and other sectors operating in forest areas while optimizing state revenue. The regulation includes imposing fines on violators, reclaiming misused forest areas, and restoring assets for appropriate use.
These enforcement measures apply to both corporations and individuals, with varying sanctions. However, Yunan urged policymakers to carefully consider the economic and social consequences to prevent widespread socio-economic disruptions. (P1)
