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A Superbody Institution in the Palm Oil Sector



Foto by Fitra Yogi/Sawit Fest 2021
A Superbody Institution in the Palm Oil Sector

InfoSAWIT, JAKARTA — A similar view was expressed by Ahmad Zazali, S.H., M.H., Managing Partner of AZ Law Office & Conflict Resolution Center and Chair of the Center for Law and Conflict Resolution (PURAKA). According to him, PP 45/2025 marks a major shift in the governance of forest area enforcement. One of the most crucial changes is the expanded role and authority of the Forest Area Enforcement Task Force (Satgas PKH), now positioned at a level comparable to the Minister of Forestry in making strategic decisions.

“Satgas PKH now functions as a superbody institution with powers equivalent to the Minister of Forestry, particularly in handling oil palm plantations located within forest areas,” Zazali told InfoSAWIT.

Under PP 24/2021, all authority—from identifying unlicensed business actors, validating field data, calculating and collecting fines, to asset seizure—was held solely by the Ministry of Forestry. This is no longer the case.

In PP 45/2025, the phrase “and/or” appears repeatedly in newly inserted articles, such as Article 6(1), which states that inventory and verification may be conducted by “the Minister of Forestry and/or Satgas PKH.”

According to Zazali, this wording indicates a partial transfer of authority to the Satgas.

“Indirectly, the presence of Satgas PKH diminishes the role of the Ministry of Forestry in the enforcement process,” he said.

PP 45/2025 also revises the administrative fine formula for oil palm plantations in forest areas. Previously, fines were calculated based on forest cover density; now, the government sets a flat rate of Rp 25 million per hectare per year.

This change has stirred anxiety among industry players. With the new formula, fines may increase significantly, while the post-payment licensing mechanism has been eliminated. Furthermore, if a business fails to pay fines within 30 days, Satgas PKH may impose asset seizure, bank account freezes, travel bans, and asset auctions.

Zazali warned that this situation places heavy pressure on companies, especially those affected by changes in forest status—from non-forest to forest—due to spatial planning adjustments. (*)

Read more in InfoSAWIT Magazine, October 2025 Edition

 


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