InfoSAWIT, SIMPANG EMPAT – The Pasaman Barat Regency Government in West Sumatra, through its Plantation and Livestock Office, has stressed the importance of palm oil plantation companies in the region to promptly finalize their Business Rights Titles (HGU) in accordance with prevailing laws.
"We continue to remind the 24 palm oil companies to extend expired HGU permits and for those without one to process it immediately," said acting head of the Pasaman Barat Plantation and Livestock Office, Afrizal, as quoted by InfoSAWIT.
Of the total companies operating, two—PT Usaha Sawit Mandiri (USM) with 489 hectares of land and PT Agrowiratama with 235 hectares in Muaro Kiawai—have not yet secured an HGU. They only have a Plantation Business Permit (IUP), and their HGU applications are currently being handled by the provincial committee.
In addition, two companies are in the process of HGU extension: PTPN VI, with 3,400 hectares, and PT Perkebunan Anak Nagari Pasaman (PANP), with 715 hectares. Both applications are also at the provincial level.
Afrizal emphasized that finalizing HGU permits is not only crucial for legal certainty but also has a direct impact on increasing regional revenue. “If a company has an HGU, there will be revenue from Land and Building Rights Acquisition Duty (BPHTB). The government only facilitates; the companies must be proactive in managing it,” he stated.
The obligation for palm oil companies to possess an HGU has been reinforced since the enactment of the Job Creation Law No. 11 of 2020. Previously, companies could operate with just an IUP under the old regulations in Law No. 39 of 2014 on Plantations.
Nationally, the central government is also concerned about similar issues. Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency, Nusron Wahid, stated that the Forest Area Control Task Force (PKH) found 537 palm oil companies that only had IUPs without HGUs. Of those, 200 companies have since obtained HGUs, but 33 of them were located in forest areas, spanning 3,619.6 hectares.
“Since 2017, an HGU has been an absolute requirement for palm oil plantation companies. So, companies can no longer rely solely on IUPs,” Nusron affirmed. (T2)
