The Palm Scribe

Business players urge govt to issue regulation on smallholder plantations

Bisnis Indonesia, 13 December 2018

Business players are urging the government to issue a regulation on the implementation of corporate social responsibility in facilitating the development of smallholder plantations (FPKM). Based on Article 58 Clause 1 of Law No.39/2014 on Plantations, companies that have an operation permit (IUP) or cultivation permit (IUP-B) must facilitate the development of smallholder plantations by at least 20% of total plantation areas owned by the company. In addition, based on Article 59 of the law, the rules on development facilitation will be regulated in a Governmental Regulation (PP).

Despite the law, Indonesian Palm Oil Association (Gapki) Chair Joko Supriyono said the government hadn’t yet issued any PP on the obligation. He said on Wednesday (12 December) that the regulation was supposed to be issued no later than two years after the Law was issued. Joko also said that the Agriculture Ministry, the Agrarian and Spatial Planning Ministry, and the Environment and Forestry Ministry showed inconsistency in decrypting Law No.39/2014. He asked the government to clarify the regulation since finding smallholder plantations in concession areas is not easy.

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