Government Optimizes Palm Oil Industry Governance for Community Welfare

By: Feronika Jasin)*
The palm oil industry plays a very important role in the Indonesian economy. As one of the world’s largest producers, this commodity contributes significantly to state revenues and creates jobs for millions of people. However, behind this success, there are a number of problems that often arise, especially those related to law enforcement in this sector.
Various issues that arise, such as illegal land conversion, deforestation that damages the ecosystem, and violations of workers’ rights, often attract public attention and trigger criticism. Therefore, it is important for the government to ensure that law enforcement is carried out firmly and consistently. This aims not only to maintain environmental sustainability, but also to create a sustainable and fair industry for all parties.
Deputy Speaker of the House of Representatives, Sufmi Dasco said that President Prabowo Subianto will discipline the naughty palm oil bosses who have only been exploiting profits from the land of Indonesia and then running their wealth abroad. If President Prabowo Subianto is really serious about following up on the claim, this could be a turning point for the Indonesian palm oil industry. Given that Indonesia is one of the largest palm oil producers in the world, the role of the state in supervising and regulating this sector is very vital. By conducting data collection on palm oil plantations that have not been officially registered, the government has the potential to reduce economic gaps that have been exploited by naughty business actors. The existence of unregistered businesses will disrupt state revenues, even though the potential of this industry is very large.
The implementation of stricter and firmer policies against violations in the Palm Oil sector is a very necessary step. With more intensive supervision, it is hoped that it can minimize illegal practices that often occur, such as forced land clearing without considering environmental and social aspects. The involvement of various parties, from government institutions, companies, to the community, is very important in creating a mutually beneficial and equitable system.
The statement of the Head of the Aceh Financial and Development Supervisory Agency (BPKP) Representative Office, Supriadi, regarding the importance of certification for palm oil plantation businesses in Simeulue, is a positive signal for the future of the palm oil industry in Indonesia, especially in Aceh. Supriadi emphasized the importance of legality and transparency in the management of palm oil plantations, by requiring business actors to complete official documents and obtain ISPO ( Indonesian Sustainable Palm Oil ) certification.
The Indonesian Palm Oil Industry, despite being one of the most important commodities for the country’s economy, often gets negative attention related to various problems, such as environmental damage, human rights violations, and corrupt practices. Therefore, the initiative that encourages business actors to obtain ISPO certification has a very strategic meaning. ISPO certification not only guarantees that palm oil plantations are managed in a more environmentally friendly manner, but also confirms that the business is carried out in accordance with established social and economic standards. This is a very relevant step to address the problems of ambiguity and non-transparency that often involve this sector.
The success of law enforcement in the Palm Oil industry also depends on good coordination between the central and regional governments. The parties involved need to work together to identify and handle cases of violations more effectively. In this regard, increasing the capacity of law enforcement officers, such as forestry police and environmental monitoring agencies, is no less important. Without adequately trained human resources, law enforcement in the field will be difficult to run optimally.
Secretary General of Mata Hukum, Mr. Mukhsin Nasir, appreciates and supports the steps of the President of the Republic of Indonesia, Prabowo Subianto, to optimize the role of the task force (Satgas) for Improving Palm Oil Industry Governance and Optimizing State Revenue for the revival and welfare of the community, business actors and palm oil farmers in Indonesia. The Task Force for Improving Palm Oil Industry Governance has a very complex task.
Not only focusing on monitoring large companies, but also ensuring that smallholders are treated fairly and are not marginalized by large companies that often receive preferential treatment. Poor management often results in social injustice at the grassroots level, with many smallholders trapped in a system that does not benefit them. Therefore, within the framework of this governance reform, it is important to pay attention to the welfare of all levels of palm oil business actors, from farmers to large companies.
It is also important to remember that the Palm Oil industry not only has a large economic impact, but also a social and environmental one. Therefore, law enforcement in this sector must consider these various aspects. Thus, it is hoped that the Indonesian Palm Oil industry can continue to grow without ignoring the sustainability and welfare of the community. Strategic steps involving strengthening regulations, strict law enforcement, and active participation from all parties can be a solution to overcome existing problems. If this can be realized, the Indonesian Palm Oil industry will be able to compete at the global level while maintaining sustainability and providing fair benefits to all levels of society.
)* Economic Observer PT Asta Ekonomisia