The Palm Scribe

Large companies yet to stand by smallholders

Bisnis Indonesia, 19 February 2019

Palm oil companies haven’t yet fully complied with the current regulation that requires them to allocate at least 20% of their concession areas for smallholders. Calculated using the regulation, smallholders are then expected to cultivate 1.5 million hectares of plasma plantations. However, from the 7.7 million hectares of private estates, only 617,000 hectares or 8% of them are plasma plantations.

Agriculture Ministry Plantations Directorate General Estate Crops Processing and Marketing Director Dedi Junaedi demanded palm oil companies to accelerate the allocation of plasma plantations or face sanction, in accordance with Article 60 of Law No.39/2014 on Plantations.

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