PUBLICATIONS

Permentan 5/2019 modifies the oil palm plantation licensing scheme to be significantly shorter by issuing a non-effective Business License at the beginning, followed by fulfilling the conditions and subsequent permits in a single "Commitment Fulfillment" stage via the Online Single Submission (OSS) system. This change has the potential to make the business license acquisition relatively short, taking approximately 3 months, and increase the number of Business License applications. However, this speed also poses a negative potential as it could accelerate environmental damage and jeopardize community participation in the licensing process.

The implications of Permentan 5/2019 on the governance of oil palm plantations, forests, and peatlands are mixed, as it may provide legal certainty and resolve tenurial conflicts by mandating both the Right to Cultivate (HGU) and the Plantation Business License (IUP). Nevertheless, the acceleration of the licensing process potentially increases the number of permits granted in forest areas and peatlands. Furthermore, this Regulation may be counterproductive to Presidential Instruction (Inpres) 8/2018 on the oil palm moratorium, as Permentan 5/2019 promotes easier permits for Other Use Areas (APL) while the Inpres only postpones permits in forest areas.