Inconsistencies in the granting of Cultivation Rights (HGU) for the national palm oil industry at the central and regional government levels are considered to have the potential to trigger agrarian conflict. The difference in standards between the central and regional governments stems from the inclusion of HGUs already held by business actors within forest areas by local governments. Budi Mulyanto, Head of the Center for Palm Oil Studies at Bogor Agricultural University (IPB), stated that HGU is a form of Land Rights (HAT) granted by the state under Law No. 5 of 1960 concerning Basic Agrarian Regulations (UU PA).
This article was originally published on Kontan.co.id under the title "Inconsistency Between Central and Regional Governments Regarding Palm Oil Permits Triggers Agrarian Conflict."
