Talks to sell stakes in Felda Global Ventures Holdings (FGV) to two Indonesian billionaires have been suspended due to a management crisis at the world's third biggest palm plantation group, sources close to the deal said. (Reuters Photo/Samsul Said)

Spatial Planning a Solution for Palm Oil Industry: Minister


NOVEMBER 25, 2016

Nusa Dua. The Indonesian Palm Oil Association has implored an improvement in spatial planning to tackle social issues faced by the industry, particularly land use.

Minister of Agrarian and Spatial Planning Sofyan Djalil promised his office would revise the current spatial plan.

“One of the most important solutions for these [social] issues is through spatial planning, which we are still lacking in the agriculture sector,” Sofyan said during the 12th Indonesian Palm Oil Conference in Nusa Dua, Bali on Thursday (24/11).

He said he fully supports the palm oil industry, which boasts and indirect labor force of 40 million, and said reform in forestry and land use laws will be examined ahead of a push into the global market.

He highlighted the importance of the One Map Policy, which integrates the archipelago’s land use into one map, especially as he found that many palm oil companies still operate without the proper cultivation permit (HGU), which in turn slows down the process for ISPO certification.

“The ministry also requests palm oil companies with land use of more than 25 hectares complete the legal status of their plantations,” he said.

In addition, the ministry promises help the industry by accelerating HGU permit processes to take only up to 90 days.

With the acceleration, he hopes that it will push smallholder farmers to become certified for both land and ISPO in order to empower them for an improvement in the industry.