Absolution of Sin for the Forest Demolishers

Coordinating Minister for Economic Affairs Airlangga Hartarto, who led the National Coordinating Meeting for the National Sustainable Palm Oil Plantation Action Plan 2019-2024, regrets the negative view of the international world towards Indonesia's palm oil industry. In the meeting, which was attended by representatives from the Ministry of Environment and Forestry, the Ministry of Agriculture, and the Ministry of Land and Spatial Planning, Airlangga urged the acceleration of the pardoning of oil palm land in forest areas. 

According to Airlangga, the move could be Indonesia's strategy to counter the EU's Deforestation Regulation (EUDR). Indonesia's palm oil is considered to be unsustainable because it causes massive deforestation. As a result, Indonesia's palm oil exports could be halted.

"This is important so that the international world no longer views it negatively," Airlangga said on March 28, 2024. "In this way, we can make a statement to the public that the status of deforestation in forest areas has been completed and has become legal."

In the forum, the Ministry of Agrarian Affairs and Spatial Planning or the National Land Agency presented data that currently the total national oil palm plantations have reached 16.38 million hectares. Of this amount, 3.37 million hectares are forest areas. This area is almost comparable to the Central Java Province area, which reaches 3.4 million hectares.

Several companies have proposed to release forest areas for oil palm plantations. Iljas Tedjo, Director General of Land Disputes and Conflicts, said that as of March 28, 2024, the forest areas released for oil palm plantations reached 713,299 hectares. Meanwhile, the remaining 2,659,316 hectares have yet to apply for a release.

Meanwhile, the Secretary General of the Ministry of Environment and Forestry, Bambang Hendryono, reported that Environment Minister Siti Nurbaya Bakar had issued 21 Decrees (SK) granting legality to oil palm plantations in private and community forest areas. The decree consists of 6,556 legal subjects. Of these, the Palm Oil Task Force aims to pardon land belonging to 2,130 palm oil companies and 1,493 community plantations.

“Currently, 365 companies have proposed for land pardon with mechanism 110 A, and 49 units with mechanism 110 B ,” he said.

The 110 A and 110 B are the mechanisms for oil palm land pardon regulated under the Job Creation Law. Article 110 A applies to plantations in forest areas with site permits or business permits in plantations issued before the enactment of the Job Creation Law. Companies can obtain the release of forest areas if they fulfill their obligations by paying reforestation funds and providing forest resources. Companies that fail to do so will be subject to administrative sanctions in the form of fines and revocation of business permits.

Meanwhile, Article 110 B applies to plantations in forest areas without a forestry permit. Companies that meet these criteria will be subject to administrative sanctions in the form of temporary suspension of business activities, payment of administrative fines, or government coercion.

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