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Smallholder Palm Oil in North Sumatra Faces Legal Uncertainty



Doc. InfoSAWIT/Ilustration of palm oil plantation.
Smallholder Palm Oil in North Sumatra Faces Legal Uncertainty

InfoSAWIT, JAKARTA — In Ujung Gading Julu Village, North Sumatra, palm oil plantations planted decades ago now stand at the center of legal uncertainty, as smallholder farmers struggle with forest zoning regulations that threaten their livelihoods.

Village head and smallholder farmer Parabuhan Hasibuan has cultivated oil palm since 1995—long before the area was designated as forest land. “Our village existed long before Indonesia’s independence,” he said. Yet today, plantations that support local communities are classified as part of forest areas.

Parabuhan argued that Indonesia’s Forest Destruction Law, which provides exemptions for smallholders managing less than five hectares continuously for more than five years, has not been applied fairly. “The exemptions exist on paper, but they are not implemented. Even farmers with one or two hectares are still criminalized,” he said.

The situation has worsened as confiscated community land has reportedly been transferred to large corporations. According to Parabuhan, this has deepened perceptions of injustice, with small farmers bearing the brunt of enforcement while corporations benefit.

As the case awaits review by the Constitutional Court, local communities hope for a ruling that provides real legal protection without burdensome conditions. “Palm oil is not just an export commodity for us—it is our livelihood, our children’s education, and the future of our village,” Parabuhan said. (T2)

Source: InfoSAWIT Magazine Ocotober Edition

 

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