Govt to Limit Leasehold for Palm Oil Companies

Senin, 20 Mei 2013 | 08:45

Revised Agriculture Ministry Decree No.26 in 2007 would limit ownership of land for oil palm plantation companies at a maximum of 100 haSecretary of General Directorate of Plantations, Mukhti Sardjono, said this rule applies for new permit, while for companies which are already have more than 100 ha of land should not reduce the land area.

"This applies to new licenses, for the old license or company which already has more than 100 ha of land, should not reduce the land area," he said, Friday (5/17).

However, as Mukhti said, companies must maximize the investment in land area in accordance with leasehold.

Government gives three years for the company to maximize its land, if the land is not planted, then the government will provide warning and if they not heed the warning, then the land will be confiscated by the state. (msw)

by M Taufiqur Rahman, Hadijah Alaydrus