POPSI: Smallholder Palm Oil Disputes Must Be Resolved Through Forest Area Restructuring in Accordance with Regulations

Jakarta (ANTARA) - The Indonesian Smallholder Palm Oil Farmers’ Association (POPSI) has affirmed that the resolution of smallholder palm oil plantations situated within forest areas must be pursued through forest area restructuring mechanisms, rather than through enforcement, seizure, or the threat of criminal sanctions and fines.

This restructuring approach is consistent with Government Regulation No. 23 of 2021 on Forestry Administration and is constitutionally reinforced by Constitutional Court Ruling No. 181/PUU-22/2024, which provides legal protection for communities who have lived in and managed land on a hereditary basis within forest areas.

“Constitutional Court Ruling 181/PUU-22/2024 explicitly affirms the existence of legal protection for communities who have lived for generations within forest areas,” said POPSI Chairman Mansuetus Darto in a statement in Jakarta on Wednesday.

“This means the state cannot simply apply a criminal or punitive approach without considering the legal subjects involved and the nature of their activities,” he added.

Based on data compiled by POPSI members and the Palm Oil Smallholders’ Union (SPKS), hundreds of smallholder palm oil farmers are currently affected by signposting operations carried out by the Forest Area Management Task Force (Satgas PKH), despite the fact that they manage land on a small scale and have done so across generations.

Head of Advocacy at the Palm Oil Smallholders’ Union (SPKS), Marselinus Andry, emphasised that the Constitutional Court ruling carries significant implications for the application of norms within the Job Creation Law in the forestry sector.

The prohibitions and sanctions — both criminal and financial — contained in the Job Creation Law do not apply to certain legal subjects meeting two cumulative conditions: namely, communities who have lived for generations within forests, and whose activities are not intended for large-scale commercial or corporate purposes.

“Accordingly, the application of sanctions against smallholder farmers who manage land on a hereditary basis to support their families’ livelihoods cannot be equated with violations committed by corporations or large-scale business operators,” said Marselinus.