Obligation to Build Plasma Plantation and Corporate Social Responsibility Program in Palm Oil Plantation Companies as an Effort to Minimize Land Disputes
Rika Novalina1; Runtung2; Syafruddin Kalo2; Edy Ikhsan2
1) Doctoral Candidate, Faculty of Law, Universitas Sumatera Utara, Jalan Universitas No. 4, Medan 20155, Indonesia
notarisppat.rikanovalina[at]gmail.com
2) Lecturer at Faculty of Law, Universitas Sumatera Utara, Jalan Universitas No. 4, Medan 20155, Indonesia
Abstract
This paper tries to examine the extent to which the obligation to build plasma plantations and CSR obligations of plantation companies can minimize land disputes that occur in the communities surrounding the oil palm plantation companies. The Government of Indonesia has obliged every oil palm plantation company to develop plasma plantations which are destined to surrounding communities or indigenous peoples based on the Minister of Agriculture Regulation No. 98 of 2013 concerning Guidelines for Plantation Business Licensing, in Article 15 paragraph (1) that plasma plantation land is granted 20% of the Plantation Business Permit (IUP). In addition, the government requires companies engaged in the field of natural resources to carry out Corporate Social Responsibility based on Article 74 of Law No. 40 of 2007 concerning Limited Liability Companies. Both of these regulations require companies to carry out activities that benefit the communities surrounding the plantation companies. In fact, there are still problems, such as the Minister of Agrarian Regulation and Spatial Planning RI No. 7 of 2017 concerning Arrangements and Procedures for Determination of Cultivation Rights, that plasma plantations which must be submitted to the community are “at least” 20% of the planted land, there are fundamental differences. The problem is whether the obligation to carry out plasma plantation development and CSR programs can minimize the occurrence of land disputes around the plantation operated.
Keywords: Plasma Plantation; Corporate Social Responsibility; Minimize Disputes
Topic: Trade and Business