JAKARTA – The Indonesian Palm Oil Association (Gapki) Chairman Joko Supriyono said that he supports the government’s decision to issue the omnibus law no.11/2020 on job creation as it will further strengthen the legal certainty of investments in the palm oil industry.
According to him, its breakdown into six government regulations (PP) that had been issued by the government has met the goal of issuing the omnibus law. But he opined that several of the PP need more elaborative regulations on the level of ministries in order to avoid multi interpretations and create a legal certainty and clarity of doing business in the palm oil industry.
“The law should be supported with further elaborative regulations on determining derelict and abandoned lands, fines in forestry sector, strict liability and local wisdom, overlapping forestry areas, and obligation to facilitate development of smallholders’ plantations,” Joko Supriyono said during a press gathering and discussion with media leaders, which was organized by Gapki on Thursday, 04 March 2021.
The six PP, as the implementing regulations of the omnibus law and are related to the palm oil industry, are PP 20/2021 on controlling abandoned lands and areas, PP 22/2021 on preserving and managing environment, PP 23/2021 on operating forestry, PP 24/2021 on guidelines to give administrative sanctions and guidelines on non-tax state income resulted from the administrative sanctions in the forestry sector, PP 26/2021 on operating agriculture sector, and PP 43/2021 on settling discrepancy between spatial planning and forestry areas, land licenses and/or rights.
Besides the omnibus law implementation, Joko also mentioned a number of challenges facing the palm oil industry in 2021. The challenges include the increasing negative campaigns against the palm oil with focus issues on deforestation, ‘no palm oil’ labels on food products and beverages, European Union (EU) legislation, and others.