InfoSAWIT, JAKARTA – The government is preparing an innovative scheme to manage confiscated state palm oil land. The Ministry of Cooperatives and SMEs (Kemenkop) plans to partner with the Red White Village Cooperative (Koperasi Desa Merah Putih /KDMP) as a village-level manager, collaborating with PT Agrinas Palma Nusantara, a state-owned company that will act as the core business.
Secretary of the Ministry of Cooperatives, Ahmad Zabadi, explained that this concept is designed so that the management results of confiscated state palm oil can provide direct benefits to village communities, while maintaining the sustainability of state assets.
“The basic concept is that Agrinas Palma becomes the core, while village cooperatives act as plasma managing land in their respective areas,” said Ahmad in a media briefing in Jakarta, Friday (24/10/2025).
According to Ahmad, the Kemenkop team and Agrinas Palma are currently drafting a joint management model, including mechanisms for role division between the company and cooperatives. This model is expected to become a new reference in confiscated state palm oil land governance to be more productive and transparent.
“This is not just about land management, but also about village economic empowerment. We want the community to become part of the national palm oil value chain through cooperative institutions,” he explained.
Challenges in Access to Financing
However, Ahmad admitted that there are still several technical aspects that have not been decided, especially regarding the legal status of the land and the possibility of using it as collateral for cooperative loans.
“We are still discussing the form of land handover to cooperatives. If it takes the form of Business Use Rights (HGU), then it could be used as collateral. But the final decision is still awaiting inter-agency discussions,” he said.
The Kemenkop's step is assessed as an effort to strengthen the village-based palm oil business ecosystem with balanced partnership principles. Through cooperative involvement, the management of confiscated state land is expected not only to benefit the state, but also to encourage economic equalization in palm oil-producing areas.
If this scheme is successfully implemented, Indonesia could have a new exemplary model in managing plantation assets involving the community, strengthening village cooperatives, and ensuring the sustainability of the national palm oil industry. (T2)
