PT SWA Palm Oil Company Wants Legal Certainty For Investment Climate Comfort In Indonesia

Director of PT SWA, Ricky Sitorus. (Photo: Special)

PT Sumber Wangi Alam (SWA) hopes for the establishment of the law for the realization of a conducive business climate in Indonesia. This is in line with the order of President Joko Widodo (Jokowi) so that all parties, including the regional head, will create an improvement in the investment climate and will become the focus of the new government later.

The Director of SWA, Ricky Sitorus, expressed his hope that the president's order would be carried out well. This is in line with the ownership of the Hak Guna Usaha (HGU. 3100 ha) oil palm plantation owned by SWA in Sungai Sodong Village, Mesuji, Ogan Komering Ilir (OKI) covering an area of 633 hectares which since 2011 cannot be managed by SWA as the holder of the HGU.

According to Ricky, there are several people acting on behalf of local residents claiming that the 633 hectare land inside the Company's HGU belongs to 315 families and they hold 315 SKT (Land Ownership Certificate).

"It should be tested first in the legal court with legal products issued by the state, namely the HGU from the National Land Agency", explained Ricky, "They should not occupy land and take the proceeds from land that has been planted with palm oil by the company and not hinder the smooth running of investment activities in the regions, before obtaining rights in the form of binding legal decisions from the state," he told reporters recently.

What the company later regretted, continued Ricky, was the information released on the official website of the Public Relations Division of the National Police Headquarters on May 3, 2024, namely "The company must recognize the community's land". Of course this creates uncertainty in the domestic investment climate.

However, according to Ricky, the company can understand that the information that has already been widely published by our law enforcers is based on the decision of Niet Onvankelijke Verklaard (N O), which has not been fully understood for its implementation, resulting in the implementation of law enforcement which goes far beyond the verdict itself.

"Of course, this inappropriate legal information will be handled inappropriately by the general public, it can even trigger acts against the law from ordinary people," he explained.Niet Ontvankelijke Verklaard (N O) itself is a decision stating that the lawsuit cannot be accepted because the lawsuit contains formal defects. This means that the lawsuit was not followed up by the judge for questioning and trial so that there was no object of the lawsuit in the decision to be executed.

"We continue to prioritize positive things to encourage a definite investment climate according to the applicable positive legal rules", Ricky hoped. SWA as the holder of the land authority according to the HGU obtained from the state (BPN) should be given certainty to invest and work on land according to the HGU," he continued.

The SWA Director also hopes that individuals who feel as holding 315 SKT can be directed by law enforcement authorities to examine their Land Certificate through legal channels at the judiciary, so that a legal product can be obtained that is certain and binding from the judiciary, without having to commit an act that is against the law. This legal decision set by the judiciary is what we must obey together, because it is binding for everyone.

Ricky hopes that regional authorities, both law enforcement and regional heads, will respond to the President's directives regarding legal certainty to build ensuring a conducive business climate and investment.

As is known, President Jokowi in his direction at the Investment National Coordination Meeting (Rakornas) held by the Ministry of Investment/Investment Coordinating Agency (BKPM) in December 2023 emphasized that investment climate certainty must be further enforced. Moreover, in 2024, the investment realization target is planned to reach IDR 1,650 trillion.

"I ask to continue to improve the investment climate, both nationally and in the regions, and increase the realization of investment. What we used to be oriented to marketing, once investors came to land acquisition failed, complicated licensing, return again the investors were not an investment. Our current concentration is not marketed but solving problems in our own country," said Jokowi.

Jokowi's directive was conveyed accompanied by SOE Minister Erick Thohir who at that time served as Coordinating Minister for Maritime Affairs, Minister of Investment/Head of BKPM Bahlil Lahadalia, Minister of Home Affairs Tito Karnavian, Minister of Agrarian Affairs and Spatial Planning (ATR)/Head of the National Land Agency (BPN) Hadi Tjahjanto, and Cabinet Secretary Pramono Anung.