JOURNAL MONITOR EDITION 15 : ALTERNATIVE IMPLEMENTATION OF NEW PARTNERSHIP PATTERNS FOR A MORE INCLUSIVE PALM OIL INDUSTRY
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The pattern of oil palm partnership in Indonesia begins with the initiation phase of the partnership pattern and then develop and is adjusted to the current development and government policies. There are at least four development patterns of oil palm plantation partnerships, namely (1) the pattern of partnership with the Indonesian abbreviation for Nucleus Estate Smallholders (named: Perkebunan Inti Rakyat/PIR) namely the Special PIR and the Local PIR (2) the PIR Transmigration partnership pattern (3) the partnership pattern of PIR for Credit cooperative for members (named: PIR Kredit Koperasi Primer untuk para Anggotanya/PIR KKPA) and (4) the partnership pattern of PIR Plantation Revitalization (named: PIR Revitalisasi Perkebunan/Revitbun). The PIR Plantation Revitalization partnership policy ended in 2014, because the program was considered to be less successful (InfoSawit, 2018).
To continue contributing to the partenership programe in order to create greater and more inclusive economic benefit, Indonesian Governemt through Law No. 39/2014 concerning Plantations Article 58, that require plantation companies to facilitate the development of people’s plantations covering an area of 20 percent of the total area cultivated in a Plantation Business License (IUP).
This obligation cannot yet be carried out by oil palm plantation companies given the enactment of Presidential Instruction 5/2019 concerning a moratorium on the opening of new oil palm plantations, limited land and hampered sustainable principles where the development of new plantations has the potential to cause environmental problems such as the conversion of forests, peatlands and other food/agriculture lands, biodiversity loss and social problems such as agrarian conflicts and human rights violations. This condition creates a dilemma for plantation companies and creates potential legal risks and social tensions faced by the company.
The great role of partnerships in the development of the national oil industry must continue, but alternative implementation of partnership policies are needed to solve the plantation company dilemma but still create inclusive growth and create more multiplier effect. The partnership pattern is made more varied by not only related to plasma-core replicas and involving wider community groups (not only communities with the profession of farmers).
The alternatif of partenership programe such as realization of replanting (PSR) programme, optimalization GAP, development of independent oil palm smallholders organization with its greenfuel milling, integrating the with local food/agriculture products cultivated by the surrounding community to fulfill the employee plantation’s needs and the development of local community businesses both in the creative field based on palm oil and supplying POME baed bioelectricity for rural communities.has the potential to cause forest and food land conversion, biodiversity loss to social conflicts.