PALMOILMAGAZINE, MAHULU – The Mahakam Ulu Regency Government (Mahulu) requires all palm oil plantation companies operating in border areas to submit quarterly reports on the realization of their business licenses. This obligation applies to all licenses issued by the relevant authorities.
The policy aims to ensure that business activities are carried out in compliance with regulations while fulfilling the companies’ obligations to surrounding communities. Transparency and accountability are the main focus, especially since border areas hold strategic economic and social value.
Mahakam Ulu Deputy Regent Yohanes Avun emphasized that every company is also required to implement a plasma plantation program covering at least 20 percent of their total land under Hak Guna Usaha (HGU) or cultivation rights. This requirement reflects the local government’s commitment to ensuring equitable economic benefits for local residents.
“HGU permits issued by the regional government must be reported every three months. Beyond land management, there is also a responsibility to community welfare,” He said, as quoted by Palmoilmagazine.com from KBRN RRI, Friday (Aug. 15, 2025).
According to the Mahulu administration, plasma plantations are not merely a legal requirement but also part of the companies’ corporate social responsibility. Through this scheme, communities are expected to gain access to new income sources, thereby improving their welfare in a sustainable manner.
With this regulation in place, the local government hopes to foster harmonious relations between companies and the community. Regular monitoring will also serve as a preventive measure to avoid land disputes and ensure the sustainability of plantation businesses in Mahakam Ulu. (P3)
