PALMOILMAGAZINE, PEKANBARU – The issue of land legality continues to challenge the plantation sector in Riau Province, with 126 plantation companies operating under plantation business licenses (IUP) yet to obtain formal land use rights (HGU), according to the latest data from Indonesia’s Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN).
Minister Nusron Wahid, Head of ATR/BPN, revealed the figures during his recent visit to the BPN Provincial Office in Riau. Referring to Circular Letter No. 9/SE.HT.01/VII/2024, he instructed officials to immediately verify whether these plantation lands are located within or outside designated forest areas.
“We must clearly identify these lands to prevent overlapping claims. Land legality must be well defined, especially when forest zones are involved. If the HGU was issued before the forest designation, the HGU will take precedence,” Nusron stated, as reported by Palmoilmagazine.com citing Media Center Riau (Saturday, April 26, 2025).
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Beyond company-level issues, the economic potential of unregistered land in the province is also significant. Out of an estimated 3.531 million land parcels in Riau, only about 60.93% (2.152 million parcels) have been legally registered. This leaves approximately 1.4 million parcels—or 39%—unregistered, representing untapped economic value.
“This is a major task for us. Unregistered lands must be mapped and processed administratively as soon as possible,” Nusron stressed.
According to Nurhadi Putra, Head of BPN Riau Province, of the 126 companies reviewed:
- 56 companies hold Building Use Rights Certificates (SHGB)
- 10 companies already have Land Use Rights Certificates (HGU)
- 25 are in the process of applying for HGU
- 13 have not applied for SHGB
- 19 have not applied for HGU
- 3 companies had no available data
The findings underscore the urgent need for accelerated agrarian reform in Riau, a province dominated by plantations. Without proper legal status, land assets risk being underutilized and are vulnerable to future land conflicts.
Minister Nusron was accompanied during the visit by Harison Mocodompis, Head of Public Relations Bureau, along with senior administrators and inspectors from BPN Riau. (P2)
