InfoSAWIT, PELALAWAN – The establishment of partnership plantations under the Primary Cooperative Credit Scheme (KKPA) by PT. Sari Lembah Subur (SLS), a subsidiary of PT Astra Agro Lestari Tbk, located in Riau, has come under scrutiny. The palm oil plantation company, which has been operating for over three decades in Pelalawan Regency, is alleged to have built a significant portion of its KKPA plantations on forest land, causing serious losses for partner farmers.

PT. SLS, known for its core plantations and two palm oil mills, has been involved in partnership programs using the PIR-Trans and KKPA models. However, the establishment of KKPA plantations since the early 2000s in several villages around the company's operational area has led to prolonged conflicts, including land disputes with the Dusun Tua community, debt repayment issues, and land legality problems.

Data collected by the editorial team indicates that approximately 1,634 hectares of KKPA plantations owned by the Sepakat Cooperative are located within forest areas, spread across Conversion Production Forest (HPK) and Permanent Production Forest (HPT). Proportionally, this figure represents about 40 percent of the total area of KKPA plantations established by PT. SLS.

The impact on farmers is significant. Hundreds of KKPA plots managed by cooperative members have yet to receive their Land Ownership Certificates (SHM) due to the land's status as being within forest areas. Farmers have reported inquiring about this issue with the company, but have consistently been told that the forest area status is the main obstacle.

"We are disappointed because the company refuses to take responsibility for resolving the release of this forest area. We entered into a formal written partnership from the beginning. The legality issues should be the responsibility of PT. SLS," stated one cooperative member who wished to remain anonymous.

Farmers also feel aggrieved as the unclear land status poses legal risks. If their plantations are seized by law enforcement, cooperative members plan to seek compensation from PT. SLS.

Compounding the issue, in 2020 and 2021, the Sepakat Cooperative repaid its remaining debt to PT. SLS amounting to nearly Rp40 billion, sourced from credit facilities provided by Bank BRI and Bank Mandiri.

This raises significant questions among the public: how could state-owned banks disburse billions in credit with collateral from palm oil plantations that are largely located within forest areas?

"This is not just a matter of irregularities at the company level, but also concerns the diligence of banks in providing financing. If the land status is illegal, how could the verification process for collateral pass?" questioned Rizki Tama from Pelalawan LAR, in an interview with InfoSAWIT on Wednesday (July 9, 2025).

When asked about the alleged presence of KKPA plantations in forest areas, PT. SLS's Partnership Manager, Suyanto, initially denied the claims. "There are none (KKPA plantations in forest areas—ed)," he stated. However, after reporters presented maps and valid documents, he responded nonchalantly, "Let it be," he said curtly.

The company's headquarters is also perceived to be evasive. Sigit, a representative from the central partnership team, responded that the inquiry was not relevant. "HGU PT. SLS is in Genduang, Tanjung Kuyo, and Pangkalan Kulim," he stated, without directly addressing the existence of KKPA plantations in forest areas. (T2)