Palm Oil Industry Reorganization, Farmers Afraid and Restless

JAKARTA, KOMPAS – Not only investors, but palm oil farmers are also beginning to feel fear and anxiety over the actions of the Forest Area Enforcement Task Force. Those who have cultivated palm oil for years in their plantations within forest areas are likely to have their land confiscated by the government.

The fear and anxiety were expressed during the National Working Meeting (Rakernas) of the Indonesian Palm Oil Farmers Association (Apkasindo) with the theme "Realizing Food and Energy Security Through Stability and Sustainability of Indonesian Palm Oil" in Jakarta, Tuesday (18/3/2025). The event, attended by 250 palm oil farmers from 25 provinces, was opened by the Minister of National Development Planning (PPN) and Head of the National Development Planning Agency (Bappenas) Rachmat Pambudy, along with the Chairman of the Advisory Board of DPP Apkasindo, General (Ret.) Moeldoko.

Also present was the Coordinator IV of the Deputy Attorney General for Special Crimes at the Attorney General's Office, Erich Folanda, who is one of the members of the implementation team of the Forest Area Enforcement Task Force (Satgas PKH) and officials from relevant ministries and institutions.

One of the farmers who expressed his concerns is Amir Arifin Harahap from Pekanbaru, Riau. He revealed that currently, in his village, there are three farmers who claimed to have been approached by a task force team because they were cultivating oil palm in forest areas.

"We were terrified when the task force team came and put up signs in the community's gardens as well as the company's, because it led to looting. I am worried this will cause unrest. We are tired of being afraid; we just need to be brave now," Amir revealed.

Apart from Amir, there is Arifai Tambunan, a palm oil farmer from North Sumatra who experienced a similar situation. According to him, long before the area was designated as a forest zone or any socialization regarding the forest zone took place, the community had already been engaging in activities in the area.

"This is too late, and how did we know it was a forest area? This determination came later," said Arifai.

This was also emphasized by the Chairman of Apkasindo, Gulat ME Manurung, who stated that the PKH Task Force team needs to pay attention to issues related to the area and the data they possess, namely data from the Ministry of Forestry. According to him, the data is also problematic.

"There are still many procedural errors in determining the area, so the area problem should be fixed first," said Gulat.

In his speech, Gulat said that currently the condition of palm oil farmers is not good. In addition to being worried about the installation of signs prohibiting activities by the PKH Task Force Team, looting is happening everywhere.

"The key words in managing palm oil are land ownership and stability. If it is not comfortable because there is no legal certainty, then investors will run away, farmers will be afraid," said Gulat.

This was also emphasized by Moeldoko. He said that the public's complaints and fears need to be responded to by the government. Apkasindo as an organization has a strategic position to convey this to the government through its reports.

"We need to voice (farmers' concerns) and the government needs those voices. Don't let the PKH (task force) run as it pleases, without anyone reminding it," said Moeldoko.

According to Moeldoko, the PKH Task Force carries out its duties according to the policies and orders of its superiors but must still consider the impacts it causes. He believes that President Prabowo has an orientation towards farmers. "Putting up signs is easy, especially for the authorities. But we must think about the next steps," he said.

Responding to this, Erich Folanda said that the PKH Task Force Team works based on Presidential Regulation (Perpres) Number 5 of 2025 concerning Forest Area Regulation signed by President Prabowo Subianto on January 21, 2025. The goal is to carry out land management, from plantations to mining. The form of action is regulation.

In carrying out its duties, Erich continued, his party has a scheme and stages starting from pre-verification, verification, clarification, then action in the field. From the PKH Task Force that he explained, there are at least 3.7 million hectares of oil palm plantations that enter the forest area.

Currently, the PKH Task Force Team has identified 1.67 million hectares of oil palm plantations that are included in forest areas. Meanwhile, 2.1 million hectares of oil palm plantations have not been identified.

Previously, the Ministry of Forestry had issued Decree of the Minister of Forestry Number 36 of 2025 concerning the List of Legal Subjects of Oil Palm Plantation Business Activities that have been Established in Forest Areas that do not have Forestry Permits that are in Process or whose Applications are Rejected at the Ministry of Forestry.

From the decree, it was recorded that at least 436 palm oil plantation companies were included in the list, with details of 790,474 hectares still in the licensing process according to previous company applications, while 317,253 hectares of palm oil plantations had their applications rejected.

"Not directly (execution) there are stages. For the order can be started from SK 36 can also be other data," said Erich when asked by Kompas on the sidelines of the activity.

Erich added that currently his party is still carrying out the stages according to the applicable rules, namely pre-verification, verification, and clarification. He mentioned several companies that have gone through the process. According to him, there are still many other companies that are being verified or have been completed.

For palm oil farmers, Erich said, to his knowledge, no farmers have been investigated for their areas. His party is still focusing on companies, although in Presidential Decree Number 5, action is taken against all people and business entities that enter forest areas.

"I am talking about Presidential Decree (Number of 2025), there is no distinction between every person and business entity," said Erich.

In the discussion, Erich mentioned partner gardens of the company that were created in the name of the community but managed by the company. This will also be identified soon.

"There was no talk of targets, it was in the leadership meeting. I am just the executor, the order was just to do it immediately," said Erich.

When asked about who the confiscated land will be given to, Erich said that he did not know until now. PT Agrinas Palma Nusantara was previously given the mandate to manage the land confiscated by the Task Force Team through the Attorney General's Office of the Republic of Indonesia.

"We'll see later, if (Agrinas) yesterday the evidence was confiscated and given to them," said Erich.

Meanwhile, the Minister of National Development Planning (PPN) and Head of the National Development Planning Agency (Bappenas) Rachmat Pambudy in his speech said that Apkasindo could be a golden bridge between the government and palm oil farmers. "This is a big problem that is not easy to face, but behind the difficult there is something that makes it easy," said Rachmat.

Rachmat said that farmers remain the spearhead of defending national commodity interests. "Apkasindo has agreed to be a bridge and not only a strategic partner but also an inseparable part of the Prabowo-Gibran government. The pain of palm oil farmers is our pain, the happiness of palm oil farmers also makes all Indonesian people happy," he said.

Meanwhile, the General Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) Eddy Martono said that forest area management is part of legal certainty. The company respects it and carries it out. Now they are waiting for the clarification process carried out by the government.

"There is indeed sealing, but it should still be able to be maintained because if not, the palm (fruit) will be damaged, well unfortunately now looting is even more rampant," said Eddy.

Eddy hopes that the PKH task force will provide legal certainty, not the opposite. However, because of the looting, the company began to feel other impacts and was restless.

"Now the government has heard for itself that it is not only companies and investors who are worried, farmers are too," said Eddy.