PALMOILMAGAZINE, JAKARTA – Entering his first 100 days in the Red and White Cabinet, Minister of Agrarian and Spatial Planning/Head of the National Land Agency (ATR/BPN) Nusron Wahid reaffirmed his commitment to addressing irregularities among 537 plantation companies operating without Cultivation Rights (HGU) despite holding Plantation Business Licenses (IUP). The announcement was made during a Working Meeting with Commission II of the House of Representatives (DPR RI) at the Nusantara II Building, Central Jakarta, on Wednesday (October 30).
Minister Nusron emphasized that this initiative is crucial to ensuring compliance with spatial and forestry regulations. “The main sanction will be a tax fine, the amount of which is being calculated by the Financial and Development Supervisory Agency (BPKP),” he explained. Additionally, the ministry will temporarily suspend the registration and issuance of HGUs for the non-compliant companies.
Ministry data reveals that between 2016 and October 2024, 537 palm oil companies with a combined land area of 2.5 million hectares were operating without HGUs. Nusron Wahid reiterated the urgency of resolving the issue within 100 days and stressed the importance of adhering to the Constitutional Court’s interpretation of Law No. 39/2014 on Plantations, which mandates that plantation companies must possess both an IUP and HGU to operate legally.
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Nusron emphasized that paying tax fines does not mean the company will automatically get the HGU. “The granting of HGU depends on the good faith of the company and further evaluation by the government,” he continued.
In this meeting, Nusron was accompanied by Deputy Minister of ATR / Deputy Head of BPN, Ossy Dermawan, as well as a number of Middle and Primary High Leadership Officials within the Ministry of ATR / BPN. The meeting was also attended by the Chairman of Commission II DPR RI, Muhammad Rifqinizamy Karsayuda, along with all Vice Chairmen and members of Commission II DPR RI.
Nusron Wahid’s move has received public attention, considering that this curbing effort is considered important in maintaining sustainable plantation land governance and strengthening regulations. (P2)
