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Sukarja, Detania
Faculty Of Law, Universitas Sumatera Utara, Medan, Indonesia.
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Legal Study On Foreign Ownership In The Oil Palm Plantation Sector From The Perspective Of Indonesia’s Economic Sovereignty Situmorang, Patricia Catheleene Joty; Sukarja, Detania; Robert, Robert
Ultimate Journal of Legal Studies Vol. 2 No. 2 (2024): Law and Society
Publisher : Talenta Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32734/uljls.v2i2.23450

Abstract

Palm oil plantations are a leading Indonesian commodity with a strategic role. Foreign investment activities are subject to Law No. 25 of 2007 concerning Investment and Presidential Regulation No. 10 of 2021, which was later amended by Presidential Regulation No. 49 of 2021. Under these regulations, palm oil plantations do not require restrictions on capital ownership, meaning they can be fully owned by foreigners. This research addresses the legal aspects of foreign investment in the palm oil plantation sector, examines whether the size of foreign ownership correlates with the challenges posed by palm oil plantations, and examines whether existing regulations regarding Foreign Direct Investment (FDI), particularly in the palm oil plantation sector, are effective in ensuring economic sovereignty. Using normative legal research methods. The results indicate that the environmental and social impacts of palm oil plantations are not directly correlated with the company's ownership structure but rather relate to the company's operational practices and approach to local communities. Furthermore, although the state does not limit the size of foreign capital ownership, its presence in maintaining economic sovereignty is manifested in policies related to restrictions and obligations, such as those related to land rights, where investors can only hold a Cultivation Use Rights (HGU) for a specific period, and obligations regarding plasma plantation development and land allocation. This research also shows that regulations in oil palm plantations still require improvement to address overlapping and disharmonious regulations.  
Co-Authors Affila Agusmidah Agusmidah Agustono Ariska, Jeffrey Ahmad, Akiruddin Ali Mulyo Utomo Alvi Syahrin Amala, Sri Rizky Amirah Ainun Sofiah Hasibuan Ammanawwara, Ammanawwara Andjelina Panggabean, Lamsumihar Andy Isnanda Anwar, Tengku Keizrina Devi Atika Chyntya Aulia, Kevin Azhar Ismadi Azwar, Tengku Keizerina Devi Barran Hamzah Nasution BISMAR NASUTION Bismar Nasution Bridail, Bridail BUDIMAN GINTING Budiman Ginting Carl Augustinus Hothinca Soutihon Tampub Charles Anom Chelin Claudia Cindy Theresia Br Manurung Daniel Perananta Perananta Daulay, Harmona Dea Vony Nifili Zega Dedi Harianto Demak Aspian Devano Yohannes Dian Meinar Edgar, Devon Ekaputra, Mohammad Elise ELYSIA ZANETA Sinaga Emya Pratidina Sembiring Faisal Akbar Nasution Fitraeva Pane, Yos Fitri Yanni Dewi Siregar Gary Barus Hafizhah, Annisa Harahap, Mhd Dicky Safii Hari Wijaya Harmona Daulay Hasibuan, Rahmat Anshar HASIM PURBA Hasyim Purba Hendri Kurniawan Henry Sinaga Hutabarat, Jenrico Louis Ikhsan Lubis Ikhsan Lubis Ikhsan Lubis Imastian Chairandy Siregar Jannah, Rizki Nurul Jelly Leviza Jeni JAudria Loviana Jesica Pasaribu Keizeirina Devi Keizerina Devi Keizerina Devi Azwar, T Keulana Erwin Kezerina Devi Khair, Azizan Khairunnisa Sembiring Kristania Felita Lisa Andriati, Syarifah Lubis, Ikhsan Lubis, Mayang Sary Br Lubis, Tri Murti Lydia Wirawan Madiasa Ablisar Mahmud Mulyadi Mahmul Siregar MAHMUL SIREGAR Malik Hamid Malik, Rahman Manik, Candoro Tua Marbun, Liza Dameria Maria Fitriani Lubis Mariane Magda Ketaren Marlina Marlina Marlina Marlina, Marlina Mayang Sary Br Lubis Mochtar Indra Efendi Siregar Muhammad Akbar Muhammad Hadi Muhammad Zhafran Nada Indah Fitrahhani Namora*, Ola Fatimah Napitupulu, Bani Praseto Natcha, Natcha Naufal Hidayat NINGRUM NATASYA SIRAIT Ningrum Sirait OK. Saidin Parlin Dony Sipayung Perangin-angin, Donsisko Putri, Zelika Annisa Rahmat Anshar Hasibuan Rahmat Hasibuan Rahmi Handayani Rahmi Pambpha Patresia M Raymond Adytia Depari Rezki Arafah Rina Alamanda Nasution Ririn Aprillyani Ritonga, Syahdani Rizky Wardiman Rizki Putra, Rahmat Rizkita, Cindy Robert Robert Robert Robert, Robert Rommy Hamzah Rosmalinda, Rosmalinda Rosnidar Sembiring Rudy Haposan Siahaan Rugun Maylinda Rumahorbo, Alberth Mangasi Ruth Siallagan Ryan Samuel Saidin Saidin Saidin, OK Saidin, OK. Salomo Kevin Samuel Midian Tarigan Sarah Indah Nilam Wulandari Sarah Pratiwi Siahaan, Josephine Clara Lamuli Sihombing, Harafuddin Sipahutar, Regina Lois Priscilla Siregar , Mahmul Situmorang, Patricia Catheleene Joty Star Parulian Steven Simanjuntak Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi Sunarmi, Sunarmi Syafrizal Helmi Situmorang Syarifah Lisa Andriati Sylvina Anggita T. Keizerina Devi A T. Keizerina Devi Azwar T. Keizerina Devi Azwar Tamiarisa Amanda Fasa Rambe Tarigan, Gita Gisela Andriani Br Tarigan, Klaudius Epikuri Loga Tarsisius Murwadji Tarsisius Murwadji Tarsius Murwadji Tengku Keizrina Devi Anwar Tony Adam Tri Murti Tri Murti Lubis Tri Murti Lubis Tumanggor, Deynisa Bella Upsa Vision Vanesia Murni Wahyudi, Ichsan Wessy Trisna Wilbert Wilbert Winda Ramadhani Windy Grace Yeni Sandy Bangun, Yeni Sandy Bangun Yesi Ansari Yessica Agnes `Saidin, OK.