The government plans to revise Minister of Agriculture Regulation No 26/2007, which among others requires oil palm plantation companies to develop plasma plantation for local farmers, Director General of Plantation Gamal Nasir said.
He said that as part of the planned revision, Minister of Agriculture Suswono has proposed that oil palm plantation companies be given a deadline in realizing the obligation to set up plasma plantation.
For instance, for companies seeking land use permit (HGU) to open up new plantation concession, will be required to make a commitment to develop plasma plantation within 2-3 years after they obtain the HGU.
For existing oil palm plantation firms, which have long obtained the HGU, they will be given a one-year deadline to complete the obligation.
According to the regulation, oil palm firms are required to develop plasma plantation, with an acreage of at least 20 percent the size of their oil palm concession. The plasma plantation can be developed via a credit system, or in the form of grant for the local villagers. (rei)
