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Jakarta Post

Oil palm plantations’ partnership with farmers under scrutiny

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Thu, April 25 2019   /  03:02 am

Palm oil companies are currently under scrutiny from Indonesia’s independent business watchdog for their lack of commitment to comply with the partnership regulation that requires them to allocate 20 percent of their plantation area to plasma farmers.This partnership was enforced 12 years ago under Agriculture Ministerial Regulation No. 26/2007 on the guidelines for plantation business licensing, but farmer associations and environmental groups say the regulation has not been fully enforced.Business Competition Supervisory Commission (KPPU) commissioner Guntur Saragih said at a press conference on Tuesday that it was investigating violations of the regulation by large palm oil plantations.“We are not talking about a monopoly or unhealthy business practices, our focus in this matter is on how the government can ensure fair welfare distribution in the palm oil sector by allocating 20 p...