PALMOILMAGAZINE, SIMPANG EMPAT – The West Pasaman Regency Government in West Sumatra has reminded palm oil plantation companies operating in the area to promptly complete their Land Use Rights (HGU) permits in line with national regulations.
“We continue to remind 24 palm oil companies to renew expired HGU permits, and for those without permits, to immediately process them,” said Afrizal, Acting Head of the Plantation and Livestock Office of West Pasaman, as quoted by Palmoilmagazine.com from Antara, Saturday (September 20, 2025).
Among the companies in question, two are still operating without HGU: PT Usaha Sawit Mandiri (489 hectares) and PT Agrowiratama (235 hectares) in Muaro Kiawai. Both firms only hold Plantation Business Permits (IUP) and are currently processing their HGU applications at the provincial level.
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Meanwhile, two others—PTPN VI (3,400 hectares) and PT Perkebunan Anak Nagari Pasaman (PANP, 715 hectares)—are in the process of renewing their permits, with their cases also being handled by provincial authorities.
Afrizal stressed that completing HGU administration is not only a legal requirement but also a way to increase local revenue. “Once companies have HGU, the region can collect duties from the Land and Building Rights Acquisition Fee (BPHTB). The government facilitates the process, but companies must be proactive in handling it,” he explained.
The obligation for palm oil companies to secure HGU has been reinforced since the enactment of the Omnibus Law on Job Creation (Law No. 11/2020). Under previous legislation (Law No. 39/2014 on Plantations), firms could still operate with just an IUP.
At the national level, the central government is also tightening oversight. Minister of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Nusron Wahid, revealed that a special task force found 537 palm oil companies holding only IUP without HGU. Of those, 200 eventually obtained HGU, but 33 were found to be operating within forest zones covering 3,619.6 hectares.
“Since 2017, HGU has been a mandatory requirement for all plantation companies. Firms can no longer rely solely on IUP,” Nusron asserted.
With this push, local authorities hope plantation companies in West Pasaman will finalize their licensing obligations so that business operations run lawfully while also contributing to the region’s development. (P2)
