InfoSAWIT, JAKARTA -For the stakeholders, the decision (sentence) of Constitutional Court (CC) No. 138/ 2015 has become the disincentive to develop palm oil plantation nationally because it is not the same with developing other industries.
Executive Director of Indonesian Palm Oil Association (IPOA), Mukti Sardjono said, enlarging and developing palm oil plantation is basically developing the economy in one region. In the same time, there would be developing infrastructures in the surrounding, the office, workers, social and economic facilities, education, religion, health, transportation, and others.
It is normal that it would spend 5 years to develop palm oil plantation before it starts to produce (enlarging the areas, nursery, infrastructure, planting, nursery, founding the factory, harvest, processing, and marketing).
The decision of Constitutional Court No. 138 / 2015 would raise issues and there should be immediate solutions, such as, what about the investment (that has got the Plantation License), while the Cultivation License is still in process.
“It is very potential to make loss because the investment in palm oil could be about Rp 80 million/hectare. The production would eliminate about 4 tons of CPO/hectare. There would be jobless and influence the income of the people, decrease the exports and run over the money,” he said.
Mukti also proposed that would the government possible provide to get the area license while the stakeholders just accomplish the administration, just as it is in the Kawasan Berikat?’ (T2)
This article once published in InfoSAWIT Magazine, September 2018