Government Evaluates Regulation on 20 Percent FPKM Requirement

Muhammad Khozin, a member of Commission II of the House of Representatives (“DPR”), said that parliament, together with the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (“ATR/BPN”) is currently evaluating regulations on the Community Plantation Development Facility (“FPKM”) or the 20 percent plasma obligation. This evaluation aims to resolve disputes between communities and plantation companies on the plasma obligation.

Khozin emphasized that the government needs strong regulations to be able to take immediate action against companies that neglect their 20% plasma obligation. “We are coordinating with the Ministry of ATR/BPN to hold focus group discussions so that we can improve these regulations together,” he said.

Khozin noted that in the Draft Bill on Land Administration (“Land Administration Draft Bill”), the government and DPR have also agreed to include provisions on annual evaluations of holders of right-to-use land (“HGU”). One of the points to be periodically evaluated concerns companies’ compliance with the 20% FPKM obligation. The results of this evaluation will also determine whether the HGU is renewed.

“This is our critical recommendation so that the Ministry of ATR/BPN can conduct an evaluation before the HGU renewal process. That way, there’s no need to wait 35 years for the permit to be evaluated,” he said.

According to Khozin, these routine evaluations are important to ensure that the public does not have to wait decades to claim their plasma rights. This regulation is expected to minimize agrarian disputes and expedite their resolution.