Indonesian Political, Business & Finance News

Alleged Licensing Violations by Agarwood Businesses in Probolinggo Prompt Legislative Hearing

| Source: GALERT
Probolinggo – Alleged licensing violations by eight agarwood processing businesses in Dringu District, Probolinggo Regency, East Java, have come to light. Members of the public organised under the Probolinggo Regency Activist Alliance have voiced their concerns and demanded clarity on the legality of these operations.

In response, the Probolinggo Regency Regional Legislative Council (DPRD) facilitated a public hearing on Wednesday (18/6/2025). The forum brought together a number of agarwood entrepreneurs, relevant technical agencies, the Dringu sub-district head and village chief, as well as members of DPRD Commission II.

Reno Handoyo, Chairman of DPRD Commission II for Probolinggo Regency, who chaired the forum, affirmed that the legislature was present to serve as a bridge of communication between the public, business operators and the government. "We are sitting together to find solutions. When complaints are lodged, it is our duty to bring all parties together so that issues can be resolved openly," he said.

During the forum, Reno disclosed that the Activist Alliance had submitted nine points of alleged licensing violations. Some business operators claimed to already hold permits, whilst others were unable to produce complete documentation. "Some are already licensed, but there are also those who have not attended or have not yet fulfilled certain requirements," he added.

Reno recommended that relevant agencies help oversee the completion of the licensing process whilst strengthening their supervisory function. "I recommend that the relevant agencies help oversee and resolve any outstanding permits," he said.

Meanwhile, Antoni Sofyan, Chairman of the Wood and Agarwood Processors Association (PAHALAKU), expressed appreciation for the actions of the alliance and the DPRD. He said criticism and input were part of a collective effort to build a healthy business climate. "We view this positively, as a form of concern from our activist colleagues. However, some of the points raised are not entirely appropriate when directed at agarwood businesses," he explained.

Antoni cited a point that linked agarwood to the timber forest products industry. "Agarwood is a non-timber forest product, and this has been clarified by the relevant agencies," he added.

He also highlighted the Online Single Submission (OSS) system, which is considered to already encompass environmental and other technical permits. However, the weakness of OSS lies in its supervisory aspect. "I propose integrated oversight, so that activists and agencies can jointly monitor the licensing process in a more systematic and sustainable manner," he concluded.

The DPRD has urged relevant agencies to follow up promptly, in order to ensure legal certainty and a more conducive business climate in Probolinggo Regency.
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