PALMOILMAGAZINE, BOGOR – The Palm Oil Farmers Union (SPKS) has welcomed Presidential Regulation (Perpres) No. 5 of 2025, issued by President Prabowo, regarding the regulation of forest areas. This policy is seen as a crucial step in addressing various issues in the palm oil plantation sector, particularly concerning the proliferation of plantations within forest areas.
The regulation refers to previous legal frameworks, including Law No. 18 of 2023 on the Prevention and Eradication of Forest Destruction, specifically Articles 110A and 110B, further reinforced by Law No. 6 of 2023. Given the ongoing forest degradation and land encroachment, SPKS hopes the government will take concrete actions to resolve land governance issues still prevalent on the ground.
SPKS Chairman Sabarudin emphasized that forests play a vital role in maintaining environmental sustainability. He highlighted the importance of harmonizing palm oil plantations with forest areas, which serve as buffer zones benefiting communities, biodiversity, and wildlife conservation. Therefore, maintaining a balance between plantations and surrounding forests is essential.
Also Read:
Sabarudin further explained that Perpres No. 5 of 2025 aims to accelerate the resolution of land governance and business operations within forest areas, including those in the palm oil sector. SPKS considers this regulation a strategic step towards sustainable land use while ensuring a balance between economic activities and environmental protection.
According to Sabarudin, effective implementation of this policy requires the involvement of all stakeholders in the palm oil sector, including independent smallholder farmers. He noted that smallholder farmers have long hoped for government support in resolving plantation-related issues, particularly for those whose farms have been classified as being within forest areas.
Currently, the government estimates that approximately 3.5 million hectares of palm oil plantations exist within forest areas. Based on this data, a factual verification of plantation locations is necessary. SPKS urges the government to conduct a comprehensive mapping of palm oil plantations within forest zones.
SPKS argues that such mapping is essential to confirm the extent of smallholder plantations within forest areas. Accurate data on smallholder farmers in these regions is needed to establish clear land ownership records. According to the Ministry of Agriculture, smallholder palm oil plantations are classified as those covering less than 25 hectares.
“Conversely, if a plantation exceeds 25 hectares, it cannot be categorized as a smallholder farm under Ministry of Agriculture regulations,” Sabarudin stated in a press release received by Palmoilmagazine.com.
Also Read: SPKS Promotes Accelerated ISPO Certification for Independent Oil Palm Smallholders in West Sulawesi
Sabarudin urged that the implementation of this regulation should align with the 25-hectare ownership limit to ensure smallholder farmers are not disadvantaged. SPKS believes the process should begin with participatory land mapping by local governments, involving farmers, local communities, and village authorities. This approach aims to determine the extent of smallholder palm oil plantations within forest areas and establish ownership records.
Once land mapping is completed, it is essential to verify the historical status of the land. This confirmation is crucial in determining whether farmers occupied the land before or after it was designated as a forest area. Many smallholder farmers cultivating less than five hectares have managed their land for over 30 years, yet their farms remain classified as forest areas.
The resolution of smallholder plantations within forest zones is critical to providing legal certainty and protection for farmers. If smallholder plantations can be reclassified outside forest areas, farmers will be eligible for land ownership certificates (SHM), which would enhance business sustainability and improve access to banking and financial services. Additionally, this would facilitate access to the Palm Oil Replanting Program (PSR) and accelerate compliance with the Indonesia Sustainable Palm Oil (ISPO) certification.
SPKS also urges that the resolution of palm oil plantations within forest areas should consider the specific characteristics of smallholder farmers, such as their residence in local villages, the duration of land occupation, and plantation size.
Furthermore, SPKS calls on President Prabowo’s administration to ensure that the resolution process for smallholder plantations is simplified and effectively implemented. “The government should not merely issue regulations without action. As President Prabowo has said, policies should not be just empty words,” Sabarudin emphasized. (P3)
