Historical Shift in Regulations on Plantation Business Permits in Indonesia

On the Outer Islands of Indonesia the plantation sector, especially the oil palm plantation sector, has expanded dramatically in the past 40 years. One of the main factors affecting the industrial organization of the plantation sector is the government’s policy and institutional framework. Among the laws and regulations determining plantation development and activities, the regulations on plantation business permits have functioned as the policy instrument to directly govern the activities of the plantation business and shape the direction of the sector’s industrial organization. Between 1996 and 2013, five regulations on plantation business permits were enacted. This paper discusses the changing nature of the regulations from the viewpoint of policy intervention in the organization of the plantation sector.