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Palm oil Companies Should Have BL after the Decision of Constitutional Court 138/2015



Palm oil Companies Should Have BL after the Decision of Constitutional Court 138/2015

InfoSAWIT, JAKARTA – Palm oil plantation industries are the strategic ones to the economy nationally. Besides the biggest exchange makers for the economy, these industries have planted the trees in about 200 districts. Within the large plantations, it is normal that palm oil plays its important role in the regional economic development, creates the employment, and decreases the poverty.

Unfortunately until now, the land-base industries always hit some issues, such as, the legality of plantation, namely palm oil. Besides, there has been Decision of Constitutional Court, Indonesian Republic, No. 138 / 2015.

The decision of Constitutional Court has changed the phrase in Regulation No. 39/2014 about Plantation, Article 42. In the previous, it was noted that the palm oil plantation development or crude palm oil process could be done if there has been Land Rights and/or Plantation  Business License (BL) or both. But now, in the Decision of Constitutional Court, the word ‘or’ is vanished.

So the meaning of Regulation No. 39/2014 is, palm oil plantation development or crude palm oil process could be done if there has been Land Rights and Plantation Business License, the both, could not be only one.

It is for sure that the Decision of Constitutional Court would make the investors (planters) has no certainty of law because there are many palm oil plantations developed after getting Plantation License while the Business License is in process still.

Chairman of Asosiasi Advokat Konstitusi (AAK), Bahrul Ilmi Yakup said, the decision of Constitutional Court to the Article 42, Regulation No. 39/2014 about Plantation should be comprehensive and very careful.  Contitutional Court has joined or combined the condition to get the Land Rights and License in the first place to the plantation companies, before they operate theirs. “As a matter of fact, there are kinds of plantation licence, such as, for the industrial legal, transportation, trade, and others,” he said in the discussion that Paspi and Majalah Agrina did and InfoSAWIT also attended, Wednesday (5/9/2018).

He continued, it needs the technical regulation changes to the related instance to make the change of regulation that combines or joins the Land Rights and Plantation License in the future. (T2)

 


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