PALMOILMAGAZINE, JAKARTA – The palm oil plantation business partnership and the facilitation of community plantation development (FPKMS) are central to agrarian reform in the plantation sector. On Monday, August 12, 2024, organizations including Serikat Petani Kelapa Sawit (SPKS), Sawit Watch, and IHCS held a legal conference focused on these issues. The aim was to establish fair justice for smallholders and promote sustainable palm oil plantations.
SPKS Chairman Sabarudin highlighted that addressing conflicts related to business partnerships and legal issues surrounding FPKMS should be a top government priority. “Resolving conflicts in business partnerships and implementing FPKMS are urgent matters, as many regions are experiencing such conflicts,” he stated in an official statement to Palmoilmagazine.com on Wednesday, August 14, 2024.
Sabarudin also noted that despite ongoing changes in financing schemes for palm oil development through business partnerships, the outcomes often fall short of the goal of improving smallholder welfare. “New conflicts frequently arise regarding land use and outcomes, and the cooperative agreements often result in losses for smallholders. This remains a key issue,” he added.
Also Read: Indonesian Civil Organizations Push for Fair Climate Action at COP28
Director of Sawit Watch, Ahcmad Surambo said the new agrarian issue in palm oil plantations happens for the unrealized FPKMS that the companies should be responsible on. “The minimum realization of FPKMS would trigger the conflicts for the people around. This would raise new issues,” he said.
He continued the conflicts always happened because of the different perspective about FPKMS implementation and doubled regulation that made the implementation complicated. “Many companies took advantages on complex regulations in three ministries to avoid their obligation (in FPKMS implementation). This made the conflicts always happen with no clear solution,” Surambo said.
Gunawan, Senior Advisor of IHCS emphasized it would be significant to get plantation business partnership and FPKMS as the part of agrarian reformation through land re-distribution for the smallholders/farmers. He also said the partnership implementation should be based on kinship, fair partnership, and business ethics.
“The mastery of the country through its policy and palm oil plantation business partnership and FPKMS should be led to welfare the people and prevent discrimination for the smallholders,” Gunawan said.
The conference emphasized it would need the government’s intervention and regulation reformation to confirm plantation business partnership and FPKMS would really deliver the fair advantages for the smallholders/farmers and the people around palm oil plantations in this country. (P2)
