House endorses controversial Plantation Law

House endorses controversial Plantation Law

Zakki P. Hakim, Jakarta

The House of Representatives endorsed the controversial
plantation bill at a plenary session on Monday, despite protests
from farmers and non-governmental organizations.

The House said that the new law would provide investors with
legal certainty in the industry, although critics have said it
fails to protect the interests of small-scale farmers and
traditional tribes, particularly in relation to control of land.

The Indonesian Farmers Association (HKTI) stated that the
endorsement was a form of negligence and illustrated a lack of
concern for justice and equal distribution in the use of state
assets.

"The government should provide small farmers with greater
access to state assets (land) through state intervention," HKTI
vice secretary-general Agusdin Pulungan told The Jakarta Post.

He pointed out as an example that in neighboring Malaysia,
farmers were given the right to use land for up to 90 years, a
time frame also given to private investors.

He said that the new law would only provide greater
opportunity for big plantation companies to exploit the country's
natural resources, but leave small farmers out of the picture.

"We will coordinate with other parties to file a judicial
review of the Plantation Law to the Constitutional Court," he
said.

All nine factions of the House stated their support for the
plantation bill.

The session, led by Tosari Wijaya of the United Development
Party (PPP) faction, recorded a "minority note" from legislator
Sayuti Rahawarin of the Daulatul Ummah Party (PDU) faction, who
objected to some of the articles in the bill.

Sayuti said the bill did not protect traditional tribes and
small farmers' land from being taken over by big plantation
companies holding concession rights.

He also questioned why the bill did not impose criminal
sanctions on companies that fail to preserve the environment.

"We have numerous reports on big plantations taking over
tribal land. The bill should stipulate that such companies should
have their concessions revoked," he told the session.

Sayuti pointed out that articles 46 to 53 impose criminal
sanctions of up to 15 years' imprisonment and up to Rp 15 billion
(US$1.66 million) in fines for various crimes, including illegal
occupation of land, but there were no sanctions for environmental
crimes.

However, articles 48 and 49 carry maximum sanctions of 10
years' imprisonment and a Rp 10 billion fine for people who
deliberately or out of ignorance clear land using the slash-and-
burn method as it damages the environment. Traditional farmers
often use this method.

According to the law, regional administrations provide
licenses for plantation companies to operate in the regions, but
the Ministry of Agriculture has the power to determine the type
of commodities grown, while concessions are issued by the
National Land Agency (BPN).

Plantations obtain initial concessions spanning 35 years,
which can be extended for another 25 years.

After the extended period expires, a company may propose a new
35-year concession for the same area followed by a 25 year
extension.