Interpretations about 20% Quote to the Smallholders’ Plantations

Interpretations about 20% Quote to the Smallholders’ Plantations

InfoSAWIT, JAKARTA –In the Laws No. 39 / 2014 about Plantation, it regulates that every plantation company should facilitate the smallholders’ plantations to be developed, at least, 20% of the total areas from its business, as it is regulated in the Article 58, Article 59, and Article 60.

Chairman of Forum Pengembangan Perkebunan Strategis Berkelanjutan (FP2SB) Achmad Mangga Barani said, the regulation is good to develop the partnership with the people (smallholders).

But in the field, the regulation still makes debate and issues to be implemented because there is still misunderstanding, and interpretations, and no law enforcementfor the companies, governors, regents/majors, and the other stakeholders.

“This happens for, such as, the regulations are inconsistent, have no clear and strict mechanism, and the ‘20%’ is not clear yet. It has no unity and understandings which means, the numbers (20%) are based on the Plantation Business or Business License or planted areas,” he recently said in the official statement to InfoSAWIT.

Deputy of Food and Agriculture, Coordinator Ministry in Economy, Musdhalifah Machmud said that the government has prepared some regulations to ease the stakeholders. The President’s Instruction No. 8 / 2018 about the Palm Oil Moratorium could be the reference about the palm oil plantations.

She also said that the President’s Instruction could accelerate the regulation for the next three years to evaluate the plantation areas in Indonesia. “We harmonize everything because there is no contradiction one to the other,” she said. (T2)


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