Oil Plam Plantation in Indonesian Law

Entering agribusiness palm oil plantations in Indonesia, starting with strengthening the legal aspects of the area to be used as a plantation. Many plantations fail due to unclear licensing. Especially the position of the area that had to be outside the forest area or at least have no release from the regional government authorities, namely the Ministry of Forestry. In addition, many also happened, after obtaining the consent principle and permit the location of the local government, plantation companies should also conduct Compensation Plants Grow (CPG – in Indonesian say  it Ganti Rugi Tanaman Tumbuh/GRTT), to the area which is still occupied by a third party.

In this condition, the development plans of oil palm plantations in Indonesia must be planned carefully, so as to avoid payment CPG/GRTT more than 1 times.  The stages of permitting the construction of oil palm plantations are:

1.      The principle of local government permits (often referred to as the landing location or permit land information)

2.      Permit Location loading map plantations are still to be released from a 3rd party.

3.      The release of the Forest Zone, if there is still a Location Permit area Forest Area.

4.      CPG/GRTT, the process of restitution of land occupation 3rd party.

5.      Cadastral, conducted by the National Land Agency, which is a measurement areas already owned.

6.      Enviromental Impact Analysis (Indonesia say it AMDAL)

7.      Committee B, on Provincial Land Office received a recommendation for the issuance of the Decree of the leasehold.

8.      Issuance of the Decree of Leasehold from the National Land Agency

9.      Issuance of Leasehold Certificate from Land Office District

PALM PLANTATION LOCATION PERMIT

By the rules of the location permit will be void if during the six (6) months of the company does not run the business and report their activities to local governments. Actually not revoked any location permit was no longer valid, only administratively, there should be revocation of local government, as the party who issued the permit. Regarding the deadline of 6 (six) months need look by investors or companies that obtain location permits, as well as potential partners who will implement cooperation with the company. Because in practice may permit a company that has run out location is still in operation and even carry out cooperation with other companies, to “capitalize” Permission location is no longer valid.

Acquisition of land by Location Permit holders must be completed within a period of location permits. If the land acquisition can not be completed within a period of location permits, including an extension of the time period, then the land acquisition can not be carried by permit holders and the location of the plots that have been acquired do the following:

a.      Used to carry out capital investment plans by the adjustment of the construction area, with the proviso that if necessary they can be implemented acquisition of land so acquired parcels of land which is a unity field;

b.      Released to other companies or individuals who qualify.

According to Article 8 of the Regulation of the Minister of Agrarian No. 2 In 1999, the rights and obligations of Location Permit holder against the other party is as follows:
Location Permit Holder allowed to release land within the area permit location of the rights and interests of other parties by agreement with the holder of the rights or interests of the parties by way of sale and purchase, provision of compensation, land consolidation or other means according to applicable regulations.

Before the relevant land freed by the holder in accordance with location permits in paragraph (1), then all the rights or interests of other parties that already exist on the land is not diminished and continues to be recognized, including the authority legally owned by holders of land rights to obtain evidence of rights (certificates), and authority to use and exploit the land for personal use or business in accordance spatial plan in force, as well as the authority to divert it to other parties.

Location Permit holder is obliged to respect the interests of other parties on the ground that has not been released as described in paragraph (1), does not close or reduce the accessibility of the communities around the site, and preserve and protect the public interest.

After the land is exempt from the rights and interests of the other, then the Location Permit holders may be given rights to land that authorizes him to use the land in accordance with the need to carry out their investment plans

According to Article 9 of the Regulation of the Minister of Agrarian No. 2 In 1999, the Location Permit holder is obliged to report every 3 (three) months to the Head of the Land Office regarding the acquisition of land already acquired and started working on based on location permits and the implementation of land use.

According to the Regulation of the Minister of Agrarian Land Agency chief No. 2 of 1999 on Location Permit, which is defined as a location permit is a permit granted to the company to acquire land needed for investment which applies as permit the transfer of rights, and to use the land for purposes venture capital investment

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