PEKANBARU – The conflict over palm oil land management between Koperasi Produsen Petani Sawit Makmur (KOPPSA-M) and PTPN IV Regional III has reached a new stage. On February 19, 2025, KOPPSA-M’s legal representative, Herry Supriyadi from Armilis Ramaini Law Office, filed a report with the Riau Regional Police against MT, the former chairman of KOPPSA-M (2013-2016), on allegations of document forgery that financially harmed the cooperative.
This case has drawn public attention, as it involves not only land management rights but also suspected document manipulation that directly affects the economic well-being of cooperative members.
A Longstanding Dispute
The dispute stems from a Primary Cooperative Credit for Members (KKPA) agreement signed in 2002 between PTPN V (now PTPN IV Regional III) and KOPPSA-M. The project involved an investment of IDR 79 billion, consisting of IDR 41 billion from PTPN for plantation development and a IDR 38 billion loan from Bank Agro.
However, after more than 25 years, only 800 hectares of the 1,650-hectare land has been successfully developed. Further complications arose when 100 hectares of plantation land suffered from flooding, allegedly due to poor water flow planning by PTPN.
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An agronomy expert noted that the allocated funds for plantation development were significantly higher than industry standards. “Based on the 1999/2000 economic model, developing a 1,650-hectare palm oil plantation should have cost a maximum of IDR 25 billion, yet IDR 79 billion was allocated, and the project still failed to progress as planned,” the expert stated, as quoted by Palmoilmagazine.com from goriau.com on March 4, 2025.
Allegations of Document Forgery
The situation worsened with allegations that MT, during his tenure as chairman of KOPPSA-M, forged the minutes of an Extraordinary General Meeting (EGM) on February 9, 2013, by adding unauthorized clauses. These clauses were later used to sign a new agreement with PTPN on April 15, 2013, and an investment loan agreement with Bank Mandiri Palembang Branch worth IDR 83 billion on May 28, 2013. The loan was secured using 622 land certificates belonging to cooperative members.
KOPPSA-M’s legal team revealed that the forgery was uncovered when the documents were presented as evidence in court. “MT included information that contradicted the cooperative’s Articles of Association, making it legally invalid,” said Herry Supriyadi.
Additionally, there are suspicions that the Bank Mandiri loan funds never reached KOPPSA-M’s account but were instead transferred directly to PTPN’s account. As a result, the debt, including interest, has ballooned to approximately IDR 140 billion, placing a heavy financial burden on the cooperative and its members.
Legal Experts Weigh In
During a breach of contract lawsuit hearing between PTPN IV and KOPPSA-M at the Bangkinang District Court on February 25, 2025, Dr. Ermanto Fahamsyah, a civil law expert, stated that land without a mortgage certificate (Hak Tanggungan) cannot be used as loan collateral. Consequently, PTPN’s claim over the 622 land certificates is legally invalid.
Ermanto also warned that cooperative administrators who violate the law can be held personally liable. “The mistakes of individual administrators should not harm the cooperative and its members,” he emphasized during the trial.
The case has sparked growing concern among residents of Pangkalan Baru, who are directly affected by the dispute. They hope for a fair and transparent legal process. “We want justice. Small farmers must not become victims,” said ND, a local community leader.
As the dispute continues, all parties now await the Supreme Court’s oversight in ensuring a fair resolution. The ruling will not only determine the future of KOPPSA-M and its members but will also set a critical precedent for land management by state-owned enterprises (BUMN) in Indonesia. (P2)
