PALMOILMAGAZINE, JAKARTA – In recent times, numerous individuals have asserted their involvement in developing 20% plasma plantations, leading to conflicts in some cases. The pressing question revolves around understanding the actual obligations outlined in the existing regulation(s).
Specifically in Central Kalimantan Province, a surge in claims to develop plasma plantations has resulted in clashes with security officers and damage to plantation facilities. This has triggered protests from the local community residing near palm oil plantations.
The source of their discontent stems from the government’s prior policy, which mandated palm oil plantation companies to cultivate people’s plantations through partnership programs with the local communities surrounding the plantations.
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In 2007 the central government published the Regulation of Minister of Agriculture (RMA) Number 26 / 2007 about Plantation Business Permit Guidelines. Chapter 11 says that plantation company that has plantation business permit is obliged to develop people’s plantations about 20% (twenty percent) at least, of the total plantations that the company operates.
The regulation was published after some government’s programs ended which the goal was about to develop plantations, particularly, (smallholders) people’s palm oil plantations which developed since 1960 to 2005. The programs were Nucleus Estate Smallholders (NES) I-VII, Perkebunan Inti Rakyat – Perkebunan (PIR Bun), PIR Transmigrasi (Trans), Kredit Koperasi Primer untuk Anggota (KKPA), and Revitalisasi Perkebunan.
Chairman of Palm Oil Cultivation Group, Directorate of Palm Oil and Various Palm, General Directorate of Plantation Ministry of Agriculture, Togu Rudianto Saragih said that for such programs ended, people’s plantation development would be the solution to solve gap of welfare around (palm oil) plantations.
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“And maintain harmonious relation between the plantation companies and the people around by paying attention to profits of plantation companies,” he said as the speaker in a webinar that Indonesian Planters Society (IPS) conducted that Palmoilmagazine.com joined in the midst of November 2023.
But the regulation about developing 20% of people’s plantations in the few years, changed as the situation and development changed in palm oil plantations in Indonesia.
For example, in 2013, Ministry of Agriculture published RMA Number 98 / 2013 as the substitution of RMA Number 26 / 2007. It was reinforced by the Laws Number 39 / 2014 about Plantation as it was substituted by the Laws Number 6 / 2023 about the Establishment of Regulation in Lieu of Law Number 2 / 2022 about Cipta Kerja as the laws.
Saragih told that in RMA Number 98 / 2013 there were basic changes about phrases. Prior RMA Number 26 / 2007 says “obliged to develop plantations” but it is changed to be “obliged to facilitate in plantation development”.
The obligation would be for plantation companies that have business permit more than 250 hectares.
“Meanwhile, plantation companies that got permits before 28 February 2007 and conducted or implemented PIR-BUN, PIR-TRANS, PIR-KKPA, or other forms of plasma – main plantations, are not obliged,” Saragih said. (T2)