BUMN and Village Cooperatives to Manage Confiscated Oil Palm Plantations

A member of Commission VI of Indonesia’s House of Representatives of the Republic of Indonesia (“ DPR RI ”), Rieke Diah Pitaloka, encourages the involvement of smallholder oil palm plantations and village cooperatives in managing confiscated illegal oil palm plantations. This initiative aims to uphold the principles of justice and economic equity, although a data foundation is still required prior to management.

“(There is a need for) verification and validation of data on smallholder plantations that have already partnered with companies whose assets have been seized by the state,” Rieke stated to Hukumonline. Such data will serve as the basis for involvement to ensure it is targeted appropriately.

The management of land resulting from asset confiscation can be handled by PT Agrinas, a State-Owned Enterprise (“ BUMN ”) in the agribusiness sector, involving local farmers and cooperative actors. Rieke also emphasized the need for a regulatory framework governing cooperation, with a fair business scheme and profit-sharing arrangement.

This effort reflects the government’s commitment not only to combat illegal practices but also to ensure that state assets are returned for the benefit of the people. It is hoped that a management model will be established that is transparent, just, and capable of producing sustainable economic impact. “(The regulation) could take the form of Regulation of the Minister,” Rieke concluded.