Minister of Agrarian Affairs and Spatial Planning Nusron Wahid threatened to impose sanctions on 537 companies/legal entities that have palm oil plantation business permits (IUP) but do not have cultivation rights (HGU). He conveyed this at the inaugural Working Meeting with Commission II of the Indonesian People’s Representative Council (DPR RI) on Wednesday (30/10).
“The main sanction that will be applied is a tax fine, the amount of which is currently being calculated by the Financial and Development Supervisory Agency (BPKP),” he said in an official statement quoted on Thursday (31/10).
According to him, the company’s actions in continuing to operate without a permit reflect non-compliance with regulations. Currently, he continued, the Ministry of ATR is controlling and evaluating, as well as temporarily suspending the registration and HGU issuance process for hundreds of companies.
“This doesn’t mean that after they pay the fine they automatically get an HGU. The final decision will depend on the government’s good faith and attitude,” said the Golkar politician.
According to him, the control was carried out to ensure compliance with previously existing regulations, namely the Decision of the Constitutional Court dated 27 October 2016 regarding Law Number 39 of 2014 concerning Plantations, especially Article 41. Based on data from 2016 to October 2024, there were 537 companies recorded. palm oil that has an IUP but does not have an HGU. In total, the amount of oil palm plantation land reaches 2.5 million hectares.
“Previously, those who were allowed to plant oil palm had to have an IUP or have an HGU, now with the Constitutional Court’s decision, they have to have an IUP and also have an HGU,” concluded Nusron. (Z-11)
#ATR #Minister #Nusron #sanction #palm #oil #companies #HGU
**Interview with Minister Nusron Wahid on Palm Oil Sanctions**
**Editor:** Good afternoon, Minister Nusron Wahid. Thank you for joining us today.
**Minister Nusron Wahid:** Good afternoon, and thank you for having me.
**Editor:** Recently, you announced plans to impose sanctions on 537 companies engaged in palm oil cultivation that lack the necessary cultivation rights (HGU). Can you explain the rationale behind this decision?
**Minister Nusron Wahid:** Certainly. It’s crucial for the sustainable management of our natural resources that companies operating in the palm oil sector not only have the proper permits but also adhere to legal cultivation rights. This ensures accountability and helps prevent environmental degradation.
**Editor:** What specific sanctions are the companies facing, and what timeline are you looking at for enforcement?
**Minister Nusron Wahid:** The primary sanctions can include fines, revocation of operating licenses, and legal action to halt their activities. Our goal is to enforce these measures promptly, starting immediately as we verify compliance among these entities.
**Editor:** How do you envision this action impacting the palm oil industry and Indonesia’s economy as a whole?
**Minister Nusron Wahid:** While there may be short-term impacts on some companies, longer term, this initiative will strengthen the industry by ensuring that all players operate within the law. This contributes to sustainable development and positions Indonesia favorably in the global market concerned about ethical sourcing.
**Editor:** Many stakeholders argue that such sanctions could lead to job losses in affected regions. How do you plan to address those concerns?
**Minister Nusron Wahid:** We understand this concern, and that’s why it’s crucial to support both compliance and transition to more sustainable practices. We are working on programs to assist workers and companies in adapting, ensuring that jobs can be preserved while adhering to legal and environmental standards.
**Editor:** Thank you for your insights, Minister. Is there anything else you would like to add?
**Minister Nusron Wahid:** Just that we are committed to fostering a responsible and sustainable palm oil industry in Indonesia. It’s important for our environment, our economy, and future generations.
**Editor:** Thank you, Minister Wahid, for your time. We appreciate your dedication to sustainable development.
