InfoSAWIT, JAKARTA – Indonesia is accelerating its National Strategic Project (PSN) for Strengthening Palm Oil Agribusiness Governance and Ecosystems, with a focus on securing smallholders' land rights, improving plantation productivity, and expanding inclusive partnerships in state-managed plantations.
The initiative follows a presidential directive and was discussed at a ministerial-level coordination meeting at the Ministry of National Development Planning/Bappenas on October 16, 2026.
Minister of National Development Planning and Bappenas Head Rachmat Pambudy said land governance reform must provide legal certainty and improve the livelihoods of communities dependent on oil palm cultivation.
The government plans to accelerate the resolution of land tenure issues affecting smallholder plantations located within forest areas, while distinguishing community-owned or managed plantations from corporate land arrangements.
Following the resolution of land-related issues in accordance with applicable regulations, eligible smallholders are expected to gain broader access to the Smallholder Oil Palm Replanting Program (PSR), which aims to improve productivity in aging plantations.
The Ministry of Forestry will accelerate recognition processes and boundary adjustments for qualifying smallholder plantations of up to five hectares that have been sustainably managed for more than two decades, subject to applicable legal requirements.
Meanwhile, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) will support land certification through agrarian reform programs for eligible plots.
The Ministry of Home Affairs is also expected to issue guidance to regional governments to accelerate administrative services, including land history documents and electronic Smallholder Plantation Registration Certificates (e-STDB).
Agrinas Palma Nusantara to Expand Community Partnerships
The government is also directing state-owned plantation manager PT Agrinas Palma Nusantara (APN) to strengthen community participation in managing former PT Torganda plantation areas.
Under the proposed arrangement, APN is required to allocate at least 20% of the plantation area for communities and develop inclusive partnerships with local cooperatives.
The initiative is intended to expand local economic opportunities and strengthen community participation in the palm oil value chain.
Proposed National Palm Oil Agency
The ministerial coordination meeting also proposed establishing a National Palm Oil Agency accountable to the President.
The proposed institution would coordinate upstream and downstream policies, strengthen smallholder protection, improve supply-chain integration, and enhance the competitiveness of Indonesia's palm oil industry.
The proposal remains a policy recommendation requiring further government consideration.
The recommendations from the coordination meeting will be consolidated and periodically reported to the President.
The success of the initiative will depend on implementation, inter-agency coordination, and ensuring that land governance reforms deliver tangible benefits to smallholders and surrounding communities. (T2)
