Industry Information

SPKS Calls for Agrarian Reform Bill to Strengthen Land Rights for Oil Palm Smallholders

category:Industry Information Updated:2026-09-25 09:30:03
According to information received by from SPKS on Wednesday, September 23, 2026, the organization said the Agrarian Reform Bill should serve as an instrument to implement and strengthen the mandate of Law No. 5 of 1960 on Basic Agrarian Principles. SPKS said agrarian reform should not be viewed solely as a matter of land administration or land redistribution. The organization also links the policy to changes in agrarian structures, greater certainty over community land rights, reducing inequality in land control, resolving conflicts and maintaining local livelihoods. SPKS Highlights Smallholder Plantations in Forest Areas One of the issues raised by SPKS...
According to information received by from SPKS on Wednesday, September 23, 2026, the organization said the Agrarian Reform Bill should serve as an instrument to implement and strengthen the mandate of Law No. 5 of 1960 on Basic Agrarian Principles. SPKS said agrarian reform should not be viewed solely as a matter of land administration or land redistribution. The organization also links the policy to changes in agrarian structures, greater certainty over community land rights, reducing inequality in land control, resolving conflicts and maintaining local livelihoods. SPKS Highlights Smallholder Plantations in Forest Areas One of the issues raised by SPKS concerns community plantations located within forest areas. The organization has proposed that communities and smallholders who have demonstrably occupied or cultivated land for at least five years, with a maximum area of five hectares per cultivator, should be explicitly included as objects of agrarian reform. SPKS also called for greater economic support alongside land-right recognition. Such support, according to the organization, could include strengthening cooperatives, improving access to financing, increasing productivity, supporting replanting, expanding market access and implementing the People's Oil Palm Replanting Program (PSR). The organization further called for people who have occupied, managed and utilized land across generations to be recognized as subjects of agrarian reform. SPKS said such recognition is relevant to rural communities, indigenous communities and smallholder farmers whose livelihoods depend on land but who may not yet possess formal documentation proving their rights. Integrated Approach to Agrarian Reform SPKS also argued that agrarian reform needs to be implemented through an integrated approach because land-related issues often overlap with multiple sectors, including land administration, forestry, plantations, environmental management, spatial planning, licensing and forest-area policies. The organization said land redistribution or recognition should also be accompanied by economic empowerment programs. For oil palm smallholders, these measures could include cooperative development, financing, business legality, certification, productivity improvements and better market access. SPKS said it expects the Agrarian Reform Bill to provide both greater certainty over land rights and stronger economic prospects for farmers and smallholders. The proposal places legal recognition, economic empowerment and access to productive resources at the center of the organization’s position on agrarian reform.
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