PALMOILMAGAZINE, JAKARTA – The Indonesian Oil Palm Smallholders Union (SPKS) has expressed support for the government’s plan to increase community plantation allocation through the plasma scheme to 80 percent, while reducing the company portion to 20 percent.
The organization believes the policy could become a strategic step toward addressing land ownership inequality and accelerating agrarian reform within Indonesia’s palm oil sector.
Marselinus Andri from SPKS’s Advocacy Department stated that expanding the community plasma portion would help ensure the benefits of the palm oil industry are more widely shared, particularly among smallholders living around plantation areas.
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“We appreciate the government’s initiative to increase the community plasma allocation to 80 percent. This policy is important to ensure that the benefits of the palm oil industry are enjoyed more broadly by local communities and can serve as an entry point for meaningful agrarian reform in the oil palm plantation sector,” Marselinus told SPKS Welcomes 80% Plasma Plan, Urges Stronger Land Reform and Oversighton Tuesday (26/5/2026).
However, while supporting the proposal, SPKS warned that the policy shift must be accompanied by regulatory reform and stronger implementation mechanisms to avoid repeating long-standing problems found in the execution of the current 20 percent plasma obligation.
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SPKS Highlights Regulatory Overlap
SPKS noted that differences in interpretation and regulatory authority still exist between the Ministry of Agriculture and the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) regarding plasma implementation.
According to the organization, plasma fundamentally concerns land rights allocation for local communities. Therefore, supervision and implementation should primarily fall under the authority of ATR/BPN.
“The Ministry of Agriculture should focus more on regulating management patterns and partnership schemes after land has been allocated to communities,” Marselinus explained.
SPKS also pointed out that in many regions, the existing 20 percent plasma obligation has often not translated into actual land rights ownership for communities. Instead, it has frequently been implemented only through partnership arrangements that do not provide legal land tenure certainty for smallholders.
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Land Source for 80 Percent Plasma Must Be Clearly Defined
Beyond regulatory concerns, SPKS urged the government to clearly define the land source for the proposed 80 percent plasma scheme.
The organization emphasized that plasma land allocation should originate from company land rights or concession areas (HGU), including land derived from released forest areas or non-forest land designated for other uses (APL).
Marselinus argued that in several regions, nucleus-plasma relationships have evolved into unequal business arrangements.
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“In many cases, nucleus-plasma schemes have become imbalanced business relationships. Communities often provide their own land, while companies continue to dominate operational control,” he said.
According to SPKS, this situation highlights the urgent need for clearer land allocation mechanisms and fairer benefit-sharing arrangements to ensure the plasma policy truly delivers justice for local communities.
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Call for National Audit of Plasma Obligations
SPKS is also pushing for a national audit of the implementation of the existing 20 percent plasma obligation.
The organization believes such an audit is necessary to evaluate company compliance while preparing clearer dispute resolution and enforcement mechanisms.
“Without proper audits and clear resolution mechanisms, this policy change could potentially create new problems on the ground,” Marselinus stressed.
In addition to the audit, SPKS urged the government to clarify technical implementation aspects, including plasma land size and location, land legality, plantation development timelines, and beneficiary criteria.
The organization emphasized that fulfillment of plasma obligations should become a primary requirement in the issuance of land rights and plantation business permits for palm oil companies.
As a result, SPKS believes supervision and law enforcement against companies failing to fulfill plasma obligations must also be strengthened.
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At the same time, SPKS called on the government to involve farmer organizations and affected communities in the policymaking process.
“SPKS encourages the government to involve oil palm farmer organizations and impacted communities in the policy revision process to ensure the resulting regulations truly reflect field realities and existing challenges,” Marselinus concluded.
SPKS believes that with strong governance, transparent supervision, and fair implementation, the proposed 80 percent plasma policy could mark a new chapter in building a more inclusive and equitable palm oil industry in Indonesia. (P2)
