To Prevent the Conflicts, The Government Should Improve the Palm Oil License Governance

Illustration of Palm Oil Conflic Area
To Prevent the Conflicts, The Government Should Improve the Palm Oil License Governance

InfoSAWIT, JAKARTA – The area conflicts would not be the loss for the people only but also would influence the perception of palm oil products from Indonesia in the markets internationally. For example, on 13 March 2019 European Union published the policy which put away crude palm oil from the renewable source.

The continent also adopted Delegated Act and thought that palm oil products from Indonesia derived from deforestation, human rights violation, and other environmental damages (Mongabay, 2019). This policy, as a matter of fact, would influence to the palm oil absorption from Indonesia knowing that it is the biggest export from Indonesia in the plantation sector.

The policies published by the government would widely impact to the people and smallholders. Based on the data from General Directorate of Plantation, Ministry of Agriculture in 2019, at least, there were 2,74 million families depending on palm oil. The numbers increased 2,5% compared to 2018 which reached 1,67 million families.

Though the smallholders’ plantations are wide enough, the productivity is less than it produced by the government, and the private companies. Based on data from Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo) (2017) the smallholders’ palm oil production reached 3,1 tons/hectare/year, while the government’s plantations could be 3,8 tons/hectare/year and the private companies could produce 3,9 tons/hectare/year.

“The comparison is the evidence that the smallholders face not only the conflicts but also the legal and productivity,” Director of HICON Law & Policy Strategies, Hifdzil Alim said, as in the official written statement to InfoSAWIT recently.

It has issue with the fresh fruit bunch (FFB) selling in the market. The smallholders have no capability to determine the price. It gets worse by the biodiesel subsidy for giving profits to the stakeholders. The smallholders even get much worse.

In the previous, the government published (i) President Regulation No. 88 / 2017 about the Land Mastery in Forest Region; (ii) President’s Instruction No. 8 / 2018 about the Postponement and License Evaluation to Palm Oil Plantation and its Enhancement; (iii) President’s Instruction No. 6 / 2019 about the National Action Plan of Sustainable Palm Oil Plantation in 2019-2024; and (iv) President’s Regulation No. 44 / 2020 about Indonesian Sustainable Palm Oil Certification System. The four regulations could be the legal instruments to solve the area conflicts in the forest regions for the smallholders.

But in the implementation, there are some notes in the regulations, such as, the mechanism to solve the smallholders’ plantations in the forest region in President’s Regulation No. 88 / 2017 may not balance among the social, economic, and environmental rights.

The second, the President’s Instruction No. 8 / 2018 still discusses the coordination and does not too concern to implement the instruction. The third is the President’s Instruction No. 6 / 2019 and President’s Regulation No. 44 / 2020 still discuss about the legal areas. (T2)


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