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President Joko Widodo limits land area for oil palm plantations

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Jakarta, Borneo24.com – President Joko Widodo (Jokowi) officially limits land use for oil palm plantations to an area of ​​100,000 hectares (Ha), as well as a number of other commodities.

This is stated in the Government Regulation (PP) number 26 of 2021 regarding the implementation of the agricultural sector, which is a rule derived from the law number 11 of 2020 concerning the creation of jobs.

“The maximum area that plantation companies must respect includes a maximum of 100,000 hectares of palm oil,” read article 3 of the government regulation on the implementation of the agricultural sector, quoted on Tuesday by CNN (23/2)

Other regulated products include coconut on up to 35,000 hectares, rubber on up to 23,000 hectares and cocoa on up to 13,000 hectares. In addition, the maximum coffee production is 13,000 hectares, sugar cane up to 125,000 hectares, tea up to 14,000 hectares, and tobacco up to 5,000 hectares.

“The maximum size limit applies to a nationwide planting business,” the regulation says.

In addition to setting the maximum limit, the government also regulates the minimum area that plantation companies must meet when carrying out integrated plantation cultivation activities with plantation product processing companies. Includes at least 6000 ha of oil palm, 2000 ha of sugar cane and a minimum of 600 ha of tea.

The government says plantation companies that violate the provisions will be subject to administrative penalties in the form of written warnings, fines and revocation of plantation permits. Written warnings are sent a maximum of three times to the plantation company with a warning period of four consecutive months.

“Planting companies that do not respect the maximum or minimum area limits after receiving a written warning will be liable to fines,” says Article 10.

The penalty applies to the maximum excess area. The calculation of the fine is the excess area per hectare multiplied by the sale value of the tax object multiplied by two. At the same time, the calculation of the minimum fines for surface deficit uses the formula of the lack of surface area per hectare multiplied by the sale value of the tax object multiplied by two. (***)

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