The Regulation in Plantation Subsectors is not the same with Ratio Legis UUCK

The Regulation in Plantation Subsectors is not the same with Ratio Legis UUCK

PalmOilMagazine, JAKARTA - The Laws No. 11 / 2020 about UUCK which was published on 2 November 2020 through Lembaran Negara No. 245, Tambahan Lembaran Negara No. 6573 consists of ratio legis to encourage the economy and investment by providing employment, changes, and perfection of the available regulations.

Besides, UUCK is hoped that investment ecosystem including in plantation sub sector could be running well and giving certainty of business that would function as one pillar to support food security and energy, increase the income of the people and economy nationally.

UUCK mandates some further regulations in the form of government regulation (GR) which the government should arrange and harmonize through Coordinator Ministry in Economy, and other related ministries. One GR which directly has something to do with plantation sub sector is GR about the Administration of UUC in Agriculture.

The government has published GR No. 26 / 2021 about the Administration in Agriculture (GR 26/2021) on 2 February 2021.

The anatomy of GR 26/2021 consists of X chapter and 237 articles which specifically regulate plantation sub sector, such as, In Chapter II, Article 2 to Article 71. Of the regulation with 70 articles, we thought that, they are adjustable with ration legis of UUCK.

But there are some interesting chapters, articles, and clauses to be reconsidered deeply. They need perfection and/or reformulation by hoping that the implementations would be useful in legal perspectives to realize the interpretation and goals of UUCK.

The contents are about administration sanction in Article 8, Article 25, and Article 34. The administration sanction in Article 8 clause (2), and Article 25 clause (2) should have the formulation as regulated in Article 34 clause (2). The administration sanction should be executed in phase, not in unity or multi-door.

The ratio legis is that the plantation companies could run their business because their cultivation has something to do with the business legal, which is, the land rights and business license; life of people because it has something to do with the legal and other related instances, for instance, financial institutions, banks, and non-bank, cooperation, workers, people around the plantations, and other governance aspects.

That is why the regulation about administration sanction in Article 8 clause (2) should be formulated, such as, “The administration sanction as written in clause (1) could be: a. Written warning; b. Fine; c. Temporary stoppage from plantation business; and/or d. Revoking Plantation Business License”. (Assoc. Prof. Ermanto Fahamsyah /Permanent Lecturer of PostGraduate of Faculty of Law, Universitas Jember and General Secretary of Forum Pengembangan Perkebunan Strategis Berkelanjutan/FP2SB)

For more, please read PalmOilMagazine, March 2021

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