Govt to simplify plantation licensing

Govt to simplify plantation licensing

JAKARTA (JP): The government will simplify the licensing
procedure for developing new plantation areas in a bid to
encourage more investors, a senior official at the Ministry of
Forestry and Plantations said here on Tuesday.

The ministry's secretary-general, Oetomo, said that under the
new regulation investors wanting to establish a plantation area
would need only one license.

At present, prospective investors need six licenses from the
ministry, including forest relinquishment and wood-use permits.

"The new regulation will be issued in April," he told
reporters.

However, he said prospective investors would be obliged to
adopt one of five investment schemes recently introduced by the
government.

Among other things, the new schemes require investors to
cooperate with cooperatives and local farmers in the ownership
and operation of the plantations.

Oetomo said that the investment schemes would only affect new
investors, and would not affect the existing plantation firms.

"But we will urge the existing plantation firms to adopt these
schemes, because they will create a sense of belonging for the
local people. This will encourage the local people to protect the
plantation areas from any looting, theft and damage," he said.

Many oil palm plantation investors have complained that they
have not been able to realize their plans to open plantations
because of the complex licensing procedures.

They said they received land-use permits from the provincial
administration, but they could not start their projects because
they lacked the forest relinquishment permits, wood-use permits
and other permits from the Ministry of Forestry and Plantations.
Both are required under law.

They urged the government to allow the projects to operate on
the basis of permits issued by the provincial administration.

Oetomo said plantation companies are still required to obtain
land-use permits from the provincial administration.

However, he said the new procedures have received positive
responses from plantation companies and prospective investors.
(gis)