JAKARTA, GREENPRESSNET – Indonesia’s efforts to reform palm oil plantation governance have gained new momentum. The Palm Oil Farmers Union (SPKS), Sawit Watch, and the Indonesian Human Rights Committee for Social Justice (IHCS) welcomed a progressive move by the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), which increased the mandatory plasma plantation allocation from 20% to 30%, alongside plans for a comprehensive audit of its implementation.
This step is seen as a concrete sign of the state’s alignment with farmers and rural communities under the agrarian reform scheme, especially in large-scale plantation areas.
“The increase in plasma allocation is good news for farmers. It could be a way out of the severe land ownership inequality in rural areas,” said Sabarudin, Chair of SPKS, to Greenpressnet (May 22, 2025).
According to Sabarudin, the implementation of plasma allocation has often fallen short of expectations. Not only has the quantitative target been unmet, but the actual benefits reaching village communities remain minimal.
He emphasized the need for regulations from the ATR/BPN Ministry to serve as a unified legal framework that applies across sectors, including forestry and agriculture.
Overlapping Regulations, On-the-Ground Uncertainty
Another key concern is the regulatory inconsistency between ministries concerning plasma allocation. These discrepancies have created legal uncertainty and hindered oversight.
“Plasma allocation policy, as part of agrarian reform, shouldn’t be reduced to merely a business partnership model. It also involves people’s rights to land,” asserted Achmad Surambo, Executive Director of Sawit Watch.
He revealed that many companies claim a lack of available land or blame forest area status to evade plasma obligations.
In reality, the Presidential Regulation on Accelerating Agrarian Reform has already emphasized the importance of allocating land to communities as part of granting Plantation Business Use Rights (HGU).
Audit as a Catalyst for Change
Gunawan, Senior Advisor at IHCS, described the ATR/BPN Ministry’s audit plan as a strategic momentum to regulate plantation business partnerships and ensure people’s rights are not neglected.
“Demands from communities for clarity on plasma plantations are echoing across regions. This is a clear signal that the issue is serious, and the state must not remain silent,” he said.
Referring to the Constitutional Court’s ruling on the Plantation Law, plantation companies are legally required to allocate a portion of their land rights to community plantations. This obligation is no longer voluntary, but must be measurable and legally enforceable.
Agrarian reform should not remain just a promise — it must become a cross-ministerial commitment backed by serious political will. The audit initiative and increased plasma allocation are a promising start, but the road to true agrarian justice is still long. Ongoing collaboration between the government, civil society, and farmers is essential for building a palm oil industry that is fairer, more sustainable, and truly people-centered. (Marwan Aziz)
