InfoSAWIT, JAKARTA – The Indonesian Oil Palm Smallholders Union (SPKS) has voiced support for the government’s proposal to increase community plantation allocations through the plasma scheme to 80 percent, while reducing company-controlled portions to 20 percent. The organization believes the policy could help address land inequality while opening a new pathway toward agrarian reform in Indonesia’s palm oil sector.
Marselinus Andri of SPKS’s Advocacy Department said the proposed increase in plasma allocation represents an important step toward ensuring that more benefits from the palm oil industry are enjoyed by surrounding communities, particularly Smallholders living near plantation areas.
“We appreciate the government’s plan to increase the community plasma share to 80 percent. This policy is important so that more benefits from the palm oil industry are received by communities and become an entry point for real agrarian reform in the oil palm plantation sector,” Marselinus said in a statement to InfoSAWIT on Tuesday (26/5/2026).
Plasma Expansion Seen as Opportunity for Fairer Palm Oil Development
SPKS views the proposed policy as a potentially transformative moment for Indonesia’s plantation landscape, particularly in reducing long-standing disparities in land ownership and economic participation.
According to the organization, strengthening community plantation ownership could improve the balance between corporate and Smallholder participation while promoting more inclusive development.
However, SPKS also cautioned that policy changes must be accompanied by stronger regulations and implementation mechanisms to avoid repeating longstanding problems associated with the existing 20 percent plasma obligation.
Regulatory Overlap Still a Key Concern
The Smallholder organization pointed to continuing differences in interpretation and regulation between the Ministry of Agriculture and the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) regarding plasma implementation.
According to SPKS, these overlapping regulatory approaches have frequently complicated plantation partnerships and weakened implementation certainty on the ground.
The organization emphasized that stronger supervision and harmonized regulations will be critical if the 80 percent plasma concept is to deliver meaningful outcomes rather than become another difficult-to-enforce policy.
SPKS believes that if designed with robust governance and effective oversight, the 80 percent plasma proposal could mark a new chapter for Indonesia’s palm oil sector—one that is more inclusive, equitable, and supportive of community welfare. (T2)
