PALMOILMAGAZINE, JAKARTA – Minister of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Nusron Wahid, outlined the achievements of the government’s first 100 days in reforming the process of granting, extending, and renewing Plantation Business Rights (HGU). The policy aims to ensure compliance with Law No. 5 of 1960 while promoting fairness, equity, and economic sustainability.
During a working meeting with Commission II of the Indonesian Parliament (DPR RI) on Thursday (January 30, 2025), monitored by Palmoilmagazine.com, Nusron explained that HGU is granted for a maximum of 35 years and can be extended for an additional 25 years. After this period, rights holders may apply for an HGU renewal on the same land for up to 35 more years.
A major change in this policy is the upfront allocation of plasma land for local farmers. Nusron emphasized that companies applying for new HGU or renewals must allocate at least 20% of their land to plasma farmers and enhance their corporate social responsibility (CSR) programs.
Also Read: Acting Governor of Papua Pushes for Palm Oil Plantation and Marine Sector Development
“In the past, plasma allocation was only promised after HGU extensions. From now on, new HGU applicants must provide at least 20% plasma allocation upfront,” Nusron stated.
For HGU renewals, in addition to the 20% plasma allocation, companies must also demonstrate successful cooperation with plasma farmers. Nusron criticized previous practices where plasma land was often managed by corporate employee cooperatives rather than independent farmers.
“We want to ensure that plasma land is genuinely managed by farmers, not by corporate employee cooperatives. This is essential for fairness and equitable distribution,” he asserted.
To address the challenge of limited available plasma farmers in certain areas, the government has partnered with the Ministry of Transmigration. Nusron explained that the transmigration program will help create new plasma farmers capable of managing land independently.
“The President has directed us to collaborate with the Ministry of Transmigration to ensure that trained plasma farmers are available, particularly for HGU renewals and extensions,” he concluded. (P2)
