- The issue of the Tebing Tinggi Okura community's palm oil plasma plantation with PT Surya Intisari Raya (SIR) has not been resolved even though the Riau Government has initiated a meeting to find a way to resolve the conflict.
- In Riau, hundreds of plantation companies have not provided plasma plantations for the community. Governor Edy Natar Nasution, during a plantation conflict coordination meeting in Riau, January 24 , explained that only 63 companies out of 273 facilitated the development of community gardens. In other words , of the 1.7 million hectares of IUP area, only 298,000 hectares have developed community gardens.
- The Governor of Riau wrote to the district and city governments to follow up or provide guidance to plantation companies in their respective regions. As well as resolving issues regarding plasma obligations according to the licensing phase category.
- Achmad Surambo, Executive Director of Sawit Watch, reminded the government to side with the community. If the community around the company's plantation is not prosperous or poor, this condition will have an impact on the security of the company's business.
The Tebing Tinggi Okura community continues to demand clarity on the plasma plantation from the oil palm plantation company, PT Surya Intisari Raya (SIR). Until now, the issue of community oil palm plasma plantations has not been resolved even though the Riau Government has begun to initiate a meeting of the parties to find a way to resolve the conflict.
The Riau Malay Indigenous Community Alliance (AMA) together with the local youth community have long been urging SIR to fulfill its obligation to build community plasma plantations , before obtaining new business use rights (HGU).
"Looking for the best solution for the community," said Jonhor Amin, Chairman of Rukun Warga, Tebing Okura Village, East Rumbai District, Pekanbaru, also a member of AMA Melayu Riau.
from a reports on a number of electronic media sites, shows that the public's efforts to speak out about palm plasma have been going on for at least the past year. Bearing in mind, SIR's HGU will end on December 31 2024 and the company is currently requesting an extension of the HGU at the Riau Regional Office of the National Land Agency (BPN).
SIR was founded in 1992. Part of First Resources, owned by Ciliandra Fangiono. In 2021, Forbes magazine named this palm oil entrepreneur as the 24th richest person in Indonesia and was considered young because he was 45 years old at that time.
Umar Fathoni, Head of Rights Determination and Registration, BPN Riau Regional Office, said that BPN no longer has the authority to 'pressure' companies to provide plasma plantations for the community.
Even though ministry regulations require it, the inspection requirements are limited to documents. Field technical matters completely return to the plantation agency.
“(Plasma) is mandatory as a formal requirement. But how is plasma formed? Who has the right? and other requirements regarding which BPN does not interfere. "As long as there are documents attached regarding plasma, BPN will follow up," said Umar, via a conversation application, last January.
The emergence of turmoil in the Tebing Tinggi Okura community prompted Riau Governor Edy Natar Nasution to form an Integrated Internal Task Force. This team is led by the Head of the Plantation Service, Syahrial Abdi. This team will work until an agreement between both parties—the community and the company—is reached.
Syahrial Abdi said that there were two causes of turmoil in society. Firstly , some community groups felt left out or not involved in cooperatives that collaborated with SIR, in the past few years.
The cooperative, Tuah Okura Madani (TOM), has received or accommodated various program assistance from companies.
Second , regarding information on obligations to facilitate the development of community gardens or plasma plantations that have not been socialized .
The community, he said, considers plantation companies to be obliged to set aside 20% of the land from the area of their business permits.
"After reviewing it, the provisions for facilitating the development of community gardens are related to the company's conditions. SIR is entering phase one and is not subject to that obligation (plasma plantations). "This is perhaps the message that has not reached the public," said Syahrial.
Give it some slack
Syahrial refers to the Circular of the Directorate General of Plantations dated July 12 2023. This circular divides three categories of companies regarding their obligations to facilitate the development of community plasma plantations .
Plantation companies with business licenses before 28 February 2007.
If there is a partnership in the form of community core plantations or other similar patterns, it is deemed to have fulfilled the obligation to facilitate the development of community gardens. On the other hand, if you have not implemented the nucleus-plasma garden partnership pattern, you are obliged to carry out productive efforts for the surrounding community according to an agreement with the local government.
Plantation companies that have business permits between 28 February 2007-2 November 2020, are required to facilitate the development of community gardens of at least 20% of the area of IUP-B and IUP.
Community gardens that will be built outside the company's permission. Consider land availability. If there is no land, replace it with productive business activities that can become an economic source for the surrounding community.
Plantation companies that have business permits after 2 November 2020.
Part or all of the land comes from other use areas outside HGU or from the release of forest areas, it is mandatory to facilitate the development of community gardens. Even though this obligation has been completed, the company must still facilitate the community voluntarily to develop plantation management.
The community garden partnership pattern, said Syahrial, can take the form of credit, grants or profit sharing. "The first model is most widely applied," he said.
Companies, for example, act as guarantors in banks to obtain capital to build community gardens. Furthermore, debt payments from part of the community's palm oil production are also collected directly by the company.
SIR, belongs to the first phase. "The community's understanding of the 20% (plasma plantations), initially, the company was obliged to release some of the land to the community. We understand this understanding. "That's (the point) of outreach to companies and the community," said Syahrial.
After the people's core plantation program (PIR) ended in 2000, the policy of facilitating the development of community gardens around companies was re-stated in Minister of Agriculture Regulation 26/2007 concerning guidelines for plantation business licensing. Since the beginning, there have been many criticisms from parties for not improving the welfare of the farming community.
Quoting Dian Cahyaningrum's research published in 2013, the article regarding facilitating the development of community gardens has several weaknesses. For one thing, Article 11 does not explain whether the obligations only apply to plantation companies licensed after this regulation was issued—28 February 2007—or without exceptions.
Six months after the research, the Ministry of Agriculture revoked and replaced the regulations with Permentan 98/2013. In it, it still contains the obligation of plantation companies to facilitate the development of community gardens.
Here there is confirmation that companies that had a business license before 28 February 2007 and have implemented the core-plasma plantation cooperation pattern are no longer required to facilitate the development of community gardens.
The majority have not complied with the rules
In Riau, hundreds of plantation companies have not provided plasma plantations for the community. Governor Edy Natar Nasution, during a plantation conflict coordination meeting in Riau, January 24, explained that only 63 companies out of 273 facilitated the development of community gardens. In other words, of the 1.7 million hectares of IUP area, only 298,000 hectares have developed community gardens.
The Governor of Riau wrote to the district and city governments to follow up or provide guidance to plantation companies in their respective regions. As well as resolving issues regarding plasma obligations according to the licensing phase category.
"In terms of regulations, we follow and are guided by the SE of the Director General of Plantations. We in the regions follow what the center directs. This government places importance on regulation. What are the rules, we follow them. "Even though these regulations change," said Syahrial.
One example is Siak Regency, of the 11 licensed plantation companies, only one company built a community plantation covering an area of 3,741 hectares out of a total of 71,938.61 hectares of IUP.
M Ihsan, Head of Plantations at the Siak Agricultural Service, said that more than half of permit holders in Siak operated before February 28 2007.
On average, he said, there has not been a core-plasma garden cooperation pattern from the start. The Siak government, he said, had written to the company to fulfill its partnership obligations in the form of productive economic activities for the community.
“Companies have responded and come to us. We will also socialize the Director General's SE. "We will also listen to the community's requests," said Ihsan, via cell phone, Tuesday (6/2/24).
Apart from the time constraints for plantation companies obtaining permits, he said, the target of 347 hectares of plasma plantations in Riau is also based only on legal plantations. If you follow the area of oil palm plantations built by companies, he said, there would certainly be more plasma.
Prayudi Syamsuri, Director of Plantation Product Processing and Marketing, Ministry of Agriculture, explained the circular directly to regents, mayors and a number of plantation company representatives.
Yudi, who is usually called, said that many letters came to the Directorate General of Plantations regarding facilitating the development of community gardens, when the company extended the HGU. Mostly, he said. The community's letter did not extend the company's HGU because it had not carried out its obligations.
This means, said Yudi, that the government is in the middle - facilitating the resolution of conflicts between society and companies - by referring to regulations. "Companies must disclose information to permit providers and the public so as not to cause conflict.
Minimal bias
Community garden facilitation policies were more progressive in the period before the 2000s. When it was still called the PIR Bun and PIR Trans programs, the community could share plantations up to 80% of the area developed for oil palm plantations.
Achmad Surambo, Executive Director of Sawit Watch, reminded the government to side with the community.
If the community around the company's plantation is not prosperous or poor, he said, this condition will have an impact on the security of the company's business.
Surambo criticized Permentan 98/2013 which should not differentiate obligations to facilitate the development of community gardens based on when plantation companies obtain business permits.
“That's part of the scenario, how to enjoy the economic cake together for prosperity. Don't win alone."
The government, said Surambo, had provided a solution in another form so that companies and the community of planters would both enjoy the results. Namely, he said, by requiring palm oil companies to sell shares to cooperative growers' cooperatives.
Unfortunately, the revised Minister of Agriculture Regulation 98/2013 removed this provision. The 2016 regulations are the first revision after another revision in Minister of Agriculture Regulation 21/2017.
"In fact, the economic solution for the community around the company in this Minister of Agriculture Regulation (No. 98/2013), is not just about plasma plantations. Unlimited land. "Continuing policies are not getting any better," said Surambo.
He reminded that local governments must be creative and innovative in finding solutions for the community and companies. Another solution, he said, could be to intervene when the company wants to renew the HGU.
The land office, BPN and KATR, must pay attention to regional conditions. The company's permit area, he said, could be reduced for the community or not even extended. This policy, he said, could be a solution to overcome inequality in land ownership.
The consideration, said Surambo, is that the population in the village continues to increase. Community land needs are also increasing. Not to mention, the government's desire to provide land for the construction of various facilities is also a concern.
The problem, said Surambo, is that the HGU extension or renewal process is not open. Village head recommendations or community voices sometimes do not receive attention. Even during his activities, he said, the relationship between the community and the company was not harmonious
“Villages must also develop. The future village development scenario must also be a concern. Until, grow and prosper together . "This is what is called economic justice, not winning alone."
Difa Shafira, Head of the Forestry and Land Division, Indonesian Center for Environmental Law (ICEL), urged the government to take firm action against companies' non-compliance with their obligations to facilitate the development of community gardens.
Difa quoted Article 25 PP 26/2021 concerning the administration of the agricultural sector. Companies that do not comply with the provisions for facilitating the development of community gardens, he said, will be subject to administrative sanctions, in the form of fines, temporary suspension of plantation business activities and revocation of business permits.
He suggested that the government create a map of plasma plantations so that the public can monitor companies' compliance with their obligations and encourage the imposition of sanctions. "There is a map of plasma plantations that can help the public monitor all licensing processes. For example, extending the right to cultivate.
Is there an agreement ?
Governor Edy gathered a number of parties in the Melati Room of the Governorate Complex, Tuesday (6/2/24), afternoon. Syahrial and Pekanbaru Regional Secretary Indra Pomi Nasution accompanied him left and right. SIR and representatives of the Tebing Tinggi Okura community were also present.
The meeting gave the impression that the conflict between the community and the company was over, but differences of opinion regarding plasma plantations still emerged between the two parties.
Suparman, the SIR delegate, adhered to the regulations which excluded companies facilitating the development of community gardens.
“According to the regulations, SIR is a phase one company. "There is no obligation to build a garden partnership pattern," he said.
Even though it is not mandatory to facilitate the development of community gardens, he said, SIR has followed alternatives for economic empowerment of communities around the company. They collaborate with the Tuah Okura Madani Cooperative (TOM) to channel various forms of economic activities.
Ismanto, Chair of the Riau Malay AMA, appeared more lenient by remaining obedient and following the governor's directions. Although there is still hope that 522 Tebing Tinggi Okura families will get gardens.
“People are not adventurous . The only thing asked is to provide living space. No more than that."
Heri, a resident of Okura, mentioned that more than 50% of the SIR concession is in the Okura High Cliff area, but there are still malnourished children who have dropped out of school.
"Hopefully with this (company responsibility), the people of Okura, Tualang and West Maredan will have money to buy rice and send their children to school in the future," said Heri.
The only solution agreed upon at the meeting was that the Pekanbaru Government immediately issued a decision letter for prospective farmer recipients (CPP). Data collection and identification steps had been underway several weeks earlier. It is also not clear what farmers will receive.
Indra said it would be discussed and agreed upon by the community and the company. One other condition is that prospective farmer recipients must also join the Tuah Okura Madani Cooperative and do not have to establish a new cooperative.
Currently, the Tuah Okura Madani Cooperative is led by Sarbaini, previously the supervisor. He replaces Rayadi Saputra, the previous chairman resigned. Since its founding, the cooperative has carried out social economic programs from SIR in the form of raising cattle, cultivating fish and culinary delights.
Also educational assistance for Madrasah Diniyah Awaliyah (MDA), and loans for garden maintenance costs in the surrounding community.
Sarbaini admitted that he supports the demand that SIR facilitate the development of 20% of community gardens, but also adheres to regulations that eliminate this obligation.