DPR Pushes for Special Palm Oil Law in 2026, Citing Malaysia's Example

A member of the House of Representatives (DPR) Commission IV, Firman Soebagyo, has proposed the establishment of a special law on palm oil to be included in the 2026 Priority National Legislation Programme (Prolegnas). He argued that Indonesia’s palm oil industry requires its own legal umbrella to strengthen and integrate sector governance. Firman assessed that it is time for Indonesia to have a specific regulation governing the palm oil industry, considering the commodity is a main pillar of the national economy and positions the country as the world’s largest producer. He noted that Malaysia has had a specific regulation for a long time, resulting in more orderly governance. Firman explained that regulations concerning the palm oil industry in Indonesia are currently scattered across various laws, including the Plantation Law and ministerial and presidential regulations. This fragmentation means policies are not integrated, leaving protection for industry players, especially smallholders, less than optimal. The Golkar Party politician stated that a special law is needed to address various issues faced by the plantation sector, such as land conflicts, illegal plantation practices, uncertainty in fresh fruit bunch prices, and the protection of communities dependent on the industry. He added that the existence of a dedicated law would provide legal certainty for all actors, from farmers to corporations. Firman also proposed that the draft law should regulate the funding mechanism for the smallholder replanting programme.