PALMOILMAGAZINE, PELALAWAN – Hundreds of plasma smallholders in Pangkalan Lesung District, Pelalawan Regency, Riau, were left disappointed after failing to receive grant funds from the Palm Oil Plantation Fund Management Agency (BPDPKS) for replanting. The issue arose when it was discovered that their certified land overlapped with the Hak Guna Usaha (HGU) of PT Sari Lembah Subur (SLS), a subsidiary of PT Astra Agro Lestari Tbk. (AALI).
This case adds to the ongoing issues surrounding PT SLS, which had previously been under scrutiny for alleged environmental damage and road problems. Now, it has been revealed that at least 1,200 hectares of plasma land in SP5, SP6, SP7, SP9AC, and SP9B, managed by smallholders, fall within the company’s HGU. The smallholders land certificates (SHM) were issued in 1994, while the company’s HGU was granted in 1997 and 1998.
KS, a farmer from Rawang Sari Village, only became aware of the overlap issue when he tried to use his palm oil land’s SHM as collateral for a bank loan. The state-owned bank rejected his application, citing the land’s problematic status due to the overlap with PT SLS’s HGU. “We’ve been managing this plantation for decades, but only now we find out there’s an overlap,” said KS with disappointment.
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The issue became more prominent when the Rawang Sari Village Cooperative Unit (KUD) applied for BPDPKS grant funds for palm oil rejuvenation. However, hundreds of hectares of plasma land could not be processed due to the overlapping land status.
According to Rizki Tama from the Riau Activist Circle, who is also a member of the Indonesian Palm Oil Smallholders Union (SPSI), in an interview with Palmoilmagazine.com on Monday (March 24, 2025), the smallholders are facing three significant losses: they cannot use their SHM as collateral, they have lost access to BPDPKS funds, and they are uncertain about the legal status of their land.
Smallholders Hopes Rest with GTRA
The local government, through the Pelalawan Regency Agrarian Reform Task Force (GTRA), has been addressing the issue since late 2022. The task force, led by the Regent of Pelalawan, includes various relevant agencies, such as the Regional Secretary, Plantation Office, Licensing Office, Environment Office, ATR/BPN Pelalawan, and the Regional Planning Agency (Bappeda). They have conducted a series of meetings and field checks to determine the coordinates of the overlapping land.
However, as of March 2025, no concrete solution has been reached. Supriyanto Agus, Head of SP6 Sari Makmur Village, confirmed the overlap between the SHM plasma land and PT SLS’s HGU. “The land does overlap, but I’m not sure about the exact area. What’s clear is that smallholders are being harmed because they can’t access bank loans or BPDPKS grants,” he said.
Agus added that communication with the company had been ongoing but has yet to yield results. “Our last hope lies with the local government through GTRA. We hope this issue can be resolved soon,” he concluded.
Meanwhile, Dede Kurniawan, Community Development Area Manager (CDAM) for Astra Agro in Riau, revealed that the company has been undergoing an enclave process since 2023. “The company has been coordinating with the Riau Provincial BPN Office and the Pelalawan Regency Government,” he said in an interview with Palmoilmagazine.com. (P2)
