PALMOILMAGAZINE, BENGKALIS — Efforts to achieve agrarian justice in Riau’s palm oil sector are gaining new momentum. This time, the initiative is coming from the Riau Provincial Legislative Council (DPRD), which has proposed the formation of a special committee (Pansus) to monitor the enforcement of the 20% plasma land obligation required of palm oil plantation companies.
The move comes amid mounting concerns that many companies continue to neglect their legal duty to allocate a portion of their land for community-owned plantations, as mandated by Indonesian law.
Riau DPRD Chairman Kaderismanto stated that of the hundreds of plantation companies operating in the province, only a few have fulfilled the plasma requirement.
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“If this program were properly implemented, local communities would receive direct and substantial benefits. It’s one of the clearest paths to tackling extreme poverty in Riau,” Kaderismanto told Palmoilmagazine.com, quoting Antara on Monday, June 30, 2025.
The plasma program requires plantation companies holding Right to Cultivate (HGU) permits to allocate at least 20% of their concession area for smallholder plasma farms—either managed independently or through partnerships. The goal is to create mutually beneficial relationships between companies and local farmers while boosting rural economies.
However, in practice, many companies avoid their obligations. Kaderismanto cited data showing that of the 297 palm oil firms controlling approximately 900,000 hectares of HGU land in Riau, only a small number have transparently reported or implemented their plasma schemes.
The situation is even more alarming in light of findings by the Forest Area Structuring Task Force (Satgas PKH), which identified over one million hectares of illegal oil palm plantations.
“The momentum created by Satgas PKH should be aligned with our push for plasma enforcement. If taken seriously, this could be a turning point in restoring community land rights,” said the Indonesian Democratic Party of Struggle (PDIP) politician.
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The idea to form a Pansus has already been submitted to Governor Abdul Wahid, and received a positive response. According to Kaderismanto, the committee will work across sectors, collaborating with the provincial government, relevant ministries, and law enforcement agencies to ensure companies fulfill their obligations transparently and fairly.
This effort also gains political weight following a strong statement from the Minister of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), who recently declared that companies failing to meet their plasma commitments could face administrative sanctions, including HGU revocation.
“This ministerial stance gives us additional leverage at the regional level. There’s no more room for companies to exploit state land without fairly sharing its benefits with the local population,” Kaderismanto said.
He added that the Pansus will not only serve an oversight function but will also review existing policies and push for the issuance of local regulations to strengthen implementation.
“Until now, there has been no clear legal framework at the local level for regencies or municipalities to act against non-compliant companies. With this special committee, we hope to develop enforceable regulations that protect community rights and provide legal certainty,” he added.
The Riau DPRD’s move is being seen as a strong signal that agrarian reform—particularly in the palm oil sector—is starting to receive serious attention at the local government level. Beyond addressing land ownership disparities, strengthening the plasma model is viewed as a long-term strategy for building rural economic resilience and rebalancing power between corporations and local communities.
Now, public hopes are pinned on how effectively the special committee will carry out its mandate. With tight oversight, transparent data, and strong political will, the enforcement of the 20% plasma obligation could become a powerful tool for achieving social and economic justice in an industry often criticized for being elite and exclusionary. (P2)
