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<\/p>\nJAKARTA \u2013 The environment and forestry ministry\u2019s (KLHK) Forest Planology and Environmental Governance Director General Hanif Faisol Nurofiq said that there are more than 1,000 oil palm plantations that can continue their operation for the next one cycle of cultivation. <\/p>\n
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He said that they are categorized under the article 110A of \u2018UU Ciptaker\u2019 (omnibus law on job creation), which stipulates \u201ccompanies that have been operating in forest areas but having licenses from the authorities can continue their plantation operations on condition that they will fulfill all of requirements within the maximum of three years.<\/p>\n
Hanif Faisol Nurofiq said that in the legal washing process the KLHK will not revoke the companies\u2019 business licenses, but they are asked to fulfill all of administrative requirements. Through the legal washing process, companies that failed to comply with the requirements will be fined based on the government regulation (PP) No.24\/2021.<\/p>\n
He ensured that such legal washing process will not be applied for those plantations located in protected and conservation forests. \u201cWe allow those under the category of 110a to continue, but those found encroaching the protected and conservation forests are not allowed and should be converted to their initial functions as conservation forests. That way we ensure a legal certainty on the plantations,\u201d he said on Wednesday, 22 November 2023.<\/p>\n
Previously, the Law and Conflict Resolution Center (PURAKA) Head Ahmad Zazali said that based on their calculation Indonesia should get non-tax income (PNBP) at the value of Rp105 trillion from the legal washing process of the oil palm plantations found encroaching forest areas. The calculation is based on the reports of KLHK regarding the 90% of the oil palm plantations that were found encroaching the forest areas and already undergoing the legal washing process.<\/p>\n
KLHK has previously reported that around 200,000 hectares of oil palm plantations are located on protected and conservation forests. Based on the article 110B UU Cipta Kerja, the problematic plantation owners have to pay administrative fines, cost of legal washing process, and forest rehabilitation cost to the government and then return the plantation areas to the state.<\/p>\n
Ahmad Zazali said that based on a simulation of fine calculation under the category of the article 110B UU Cipta Kerja, for 10,000 hectares of oil plantations located in forest areas with the age 10 years, projected net profit per hectare per year at Rp25 million and forest cover of 20%, then total fine to be received by the government will be around Rp500 billion. (*)<\/p>\n