Factsheet: Plantation Estate Law

Plantation Estate Law

Key Information
Full name of Instrument & Measure (English): 
Plantation Estate Law 18/2004
Plantations are defined as the activities associated with the planting of certain crops (including oil palm), together with the processing and marketing, in order to create prosperity for agribusiness professionals and society. The laws extends to cover regional planning, plantation crops, human resources, institutions, relationship and integration between upstream and downstream sectors, facilities and infrastructure, and financing. Rights of land needed for plantation establishment include right of ownership (‘Hak Milik’), right of exploitation (‘Hak Guna Usaha’; HGU) and others. Land exploitation title (HGU) to operate agribusiness shall be issued maximum 35 years, extendable by a further 25. Geographic limits may be placed on the establishment of plantations in order to maintain environmental function. Plantation proponents are obliged to maintain the sustainability of the environment function and prevent damage. Prior to obtaining a Plantation Permit (‘Ijin Usaha Perkebunan’; IUP) the proponent is obliged to prepare an Environmental Impact Assessment (‘Analisis Mengenai Dampak Lingkungan’; AMDAL) and to prepare statements of willingness to undertake fire mitigation during land clearing and/or cultivation. Management and marketing; research and development; human resources development; agribusiness financing; agribusiness empowerment; investigation and criminal sanction are also regulated by this law. This Regulation provides for the transfer of the Plant Variety Protection (PVT) rights from a licensed holder to another one as per an inheritance, grant, will, notary deed or other causes according to the exixting laws. Details are provided on all the legal and administrative or financial requirements needed in order to transfer the PVT
Stimulate sustainable plant management.

Sector/Topic targeted:

Responsible Authority: 
Ministry of Agriculture


Year Instrument & Measure Started: