Challenges Faced by TUK Indonesia: 20 Percent Shortfall in Plasma Program Implementation

Palm Oil Magazine

PALMOILMAGAZINE, JAKARTA – In a seemingly justifying stance, the government, represented by Minister of Trade Zulkifli Hasan, highlighted the potential impact of the European Union Deforestation Regulation (EUDR) on exports, projecting an impact of up to Rp 101.3 trillion and affecting around 8 million smallholders.

Analyzing the facts, it becomes evident that the Decision of the Minister of Environment and Forestry concerning Business Activity Information Developed in Forest Regions without Forestry Sector Permits, from Phase I to Phase XI, reveals Central Kalimantan as the province most significantly impacted. This region hosts around 320 large-scale palm oil plantation companies, controlling a collective plantation area of approximately 559,016 hectares.

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“According to the fact, Ministry of Trade should not panic as if it were the victim of EUDR. Minister Zulkifli should realize that this is the responsibility of sins in the past when he was as the Minister of Forestry by releasing millions of hectares of forest regions in Indonesia,” Executive Director of f TuK Indonesia, Linda Rosalina, recently said, as in the official statement to

Also Read : Minister of Trade, Zulkifli Hasan: Public Consultation to CPO Exchange in Indonesia Version

Data from Badan Pemeriksa Keuangan dan Pembangunan (BPKP) showed 79% plasma program was never developed by 2.864 companies in Indonesia that should actually allocated 20% of their areas.

It means, what the people claimed as the impact of EUDR is not fully right or should be proved to the public. In a smaller scale, data from Plantation Agency Central Kalimantan Province (2020, 2022) noted that in 2020, 1.314.415,21 hectares of main palm oil plantation but plasma plantations just laid about 206.770,65 hectares. In 2022 the main plantations laid about 1.349.154,95 hectares but the plasma one just laid about 214.829,41 hectares. It means, the plasma realization in Central Kalimantan just laid about 14%.

Linda continued, as a resolution from EUDR, the government should respond it by delivering series of structured and systematic policies. The first, it needs to stop permit publication in forest region for industries that would be risky for the forest, such as, palm oil plantations and mining.

The second, it needs to evaluate the existing palm oil plantations particularly in forest regions to optimize the revenue from the sector.

“Besides, social impacts are the serious things to notice particularly to get solution on area structured conflicts which keep happening. It also needs to fulfill the workers’ rights. The government should accomplish what plasma smallholders face,” Linda said. (T2)

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