Plantation Law lacks detail: Executive<\/p>\n
Zakki P. Hakim, Jakarta<\/p>\n
The new Plantation Law approved by the House of Representatives
\nearlier this week still lacks key details, which might create new
\nuncertainties for plantation companies, said an industry
\nprofessional.<\/p>\n
Vice president of publicly listed plantation firm PT Astra
\nAgro Lestari Benny Tjoeng said on Wednesday plantation companies
\nwould take a wait-and-see attitude until government regulations
\nor ministerial decrees covering the details were issued.<\/p>\n
\"The Plantation Law is a positive thing, but it only serves as
\na guideline. We need elaboration of details,\" Benny told The
\nJakarta Post.<\/p>\n
\"Instead of luring new investment, it would discourage foreign
\nand local businesses,\" he added.<\/p>\n
The Plantation Law, drafted under initiative of the House,
\naims to attract new investment to one of the country's most
\npromising economic sectors.<\/p>\n
According to Benny, one of the issues needing clarification
\nwas the maximum size of property that may be owned by a
\nplantation company.<\/p>\n
Article 10 of the law stipulates only that the Minister of
\nAgriculture would determine the maximum size of property based on
\na set of criteria including crop type, capital, factory capacity,
\npopulation density and geographical conditions.<\/p>\n
The initial draft of the law set the maximum size of property
\nowned by a plantation firm at 20,000 hectares in a single
\nprovince and 100,000 ha nationwide. However, the final draft
\nomitted the ruling.<\/p>\n
Regarding title deeds, Benny said the law did not regulate a
\nregional government's role in settling land disputes with locals,
\nwhich was a common problem in rural areas.<\/p>\n
He said big plantations also objected to the criminal
\nsanctions imposed on those using the slash-and-burn land clearing
\nmethod.<\/p>\n
Article 48 and 49 stipulate maximum sanctions of up to 10
\nyears' imprisonment and Rp 10 billion in fines against those who
\ndeliberately, or out of negligence, use the slash-and-burn
\nmethod.<\/p>\n
Indonesia faces annual forest fires generally attributed to
\nslash-and-burn, which has contributed to haze and environmental
\ndamage both domestically and among neighboring countries.<\/p>\n
Benny said the government should define clearly what it meant
\nby \"deliberate\" and \"negligence\", as fires could be caused by
\nexternal factors, third parties or even force majeure -- yet
\nplantations were still held responsible, as had occurred in the
\npast.<\/p>\n
\"Businesses require legal certainty. The law is a good start,
\nbut we are waiting for technical details,\" he said.<\/p>\n
Astra Agro Lestari operates 195,000 hectares of oil palm
\nplantations in Sumatra, Kalimantan and Sulawesi. Some 45,000
\nhectares of these are plasma plantations owned by small farmers.<\/p>\n
The Plantation Law has also drawn protests from farmers and
\npro-farmer activists, who claimed it did not protect the
\ninterests of farmers, minor stakeholders and indigenous tribes in
\nland allocation.<\/p>\n
Key points of Plantation Law<\/p>\n
Article 10: Maximum and minimum size of a plantation is
\ndetermined by a minister in charge of plantation affairs, while
\ntitle deeds are granted by an institution authorized in landed
\nproperty affairs.
\nArticle 11: Land titles are granted for 35 years maximum.
\nArticle 12: Agriculture minister may recommend the cancellation
\nof a title if the plantation firm abandons the property for three
\nconsecutive years.
\nArticle 14: Ministerial input and recommendations must be made
\nprior to shifting ownership of a bankrupt non-listed plantation
\ncompany to a foreign company.
\nArticle 17: Business licenses are granted by governors or
\nregents, according to the location of estates to be developed.
\nArticle 47: Those who deliberately damage a plantation and its
\nassets or disrupt the business may face a maximum imprisonment of
\nfive years and a maximum fine of Rp 5 billion.
\nArticles 48, 49: Those who deliberately, or out of negligence,
\napply slash-and-burn farming may face maximum penalties of up to
\n10 years' imprisonment and Rp 10 billion in fines.<\/p>",
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