- Law No. 39 of 2014 on Plantations (“Plantation Law”) requires plantation businesses to set aside 20% of their total plantation areas in order to facilitate the development of public plantations. However, the implementation of this requirement is currently being constrained by a number of issues, such as a lack of consistency between different regulatory frameworks and an unclear implementation mechanism, as well as by different interpretations of how the 20% plantation areas are to be calculated.
- As a result of these uncertainties, plantation businesses are pushing for the issuance of a government regulation which will address the issue of plantation business licenses and which will unify regulations relating to the technical implementation of evaluations, forest area conversions and public plantation facilitations, especially regarding the transfer of 20% of total cultivation rights areas to public farmers.
- In terms of palm-oil plantations specifically, Directive of the President No. 8 of 2018 on the Palm-Oil Moratorium (“Directive 8/2018”), has offered some insight into how to obtain data relating to embedded land and forest conversion areas which can be transformed into public palm-oil plantations, as well as into the evaluation of palm-oil plantations in Indonesia.
- For more on Directive 8/2018, see ILB No. 3450
- For more on the Plantation Law, see ILB No. 2489 and ILD No. 379.
- For more on this story, see Hukumonline: “Pengusaha Kritik Implementasi UU Perkebunan”.
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