Government Faces Pushback on Seized Palm Oil Estate Management Plan

Concerns Over Land Disputes and Community Impact

The Indonesian government is facing growing concerns from palm oil companies regarding its plan to have village cooperatives (Kopdes) manage seized illegal palm oil estates. The Ministry of Cooperatives (Kemenkop) and state-owned company PT Agrinas Palma Nusantara are developing a management scheme where Kopdes would act as plasma plantations for Agrinas, which would serve as the core estate ¹

Potential for Land Conflicts

The Gabungan Pengusaha Kelapa Sawit Indonesia (Gapki) has expressed significant concerns about this plan, warning that it could lead to land disputes with existing community landowners. According to Sadino, Gapki's Legal Expert, the majority of the seized palm oil estates are already owned by local communities. He emphasized that while state-owned enterprises might be able to manage such takeovers, community-owned land poses a significant challenge due to the large number of stakeholders involved ¹

Scale of Potential Impact

The potential impact is substantial, with community ownership involving more than 800,000 hectares out of the 3 million hectares that the government plans to reclaim from illegal palm oil estates. Sadino highlighted that land disputes are already common in regions like Riau, Jambi, and Central Kalimantan, and government intervention could exacerbate these tensions ¹

Business Community Concerns

During a closed-door meeting with Commission IV of the DPR RI, palm oil companies expressed their concerns about the legal complexities surrounding the government's land acquisition plans. Many existing palm oil operations have proper legal documentation, including environmental permits and land use rights (HGU), which could be disrupted by the government's plans ¹

Regulatory Complexity

The legal expert explained that different regulations apply depending on whether the land is classified as forest or non-forest area, with varying permit requirements for each category. Companies argue that historical land use rights, some dating back to pre-independence times, need to be carefully considered in the government's plans ¹