PT Ana does not break the law, the latest IUP – the latest viral Indonesia

VIRALTERKINI.ID, JAKARTA – The polemic of the legality and environmental responsibility of PT Agro Nusa Abadi (ANA), a subsidiary of PT Astra Agro Lestari Tbk (AALI), has re -emerged following a legal lawsuit by the Non -Governmental Organization (NGOs) of Transformation for Justice (TUK) of Indonesia against one of the state banks. However, the legal analysis of national agrarian experts and the results of independent investigations showed different narratives.

To question the legality in the form of a Plantation Business License (IUP) which has been the basis for PT ANA since 2007 in carrying out its business and not the right to use (HGU). The basis of the lawsuit refers to the Walhi and Friend of the Earth (FOE) report related to three AAL subsidiaries in Sulawesi in 2022.

Agrarian Expert and Former Director General of Land Procurement of the National Land Agency (BPN), Professor Budi Mulyanto explained that the Plantation Business License (IUP) is also a legal legal basis for starting business activities.

“In the Indonesian Land Legal System, IUP and Location Permit are a strong enough basis to start a business. The right to use (HGU) is an advanced process, not an absolute prerequisite, especially when referring to the applicable rules at the time,” he explained.

Budi, who currently also serves as Chancellor of Harapan Bangsa University, states as written in Article 42 of Law No. 39/2014 concerning Plantation and is strengthened by the Constitutional Court’s Constitutional Court Decision No. 138/PUU-XIII/2015. In fact, according to him, the Constitutional Court’s decision further clarified that business licenses and land rights are two legal entities that do not hang each other.

Furthermore, Budi emphasized that law enforcement cannot be done retroactively to companies that operate based on legal rules in his time.

“It cannot be that one company is considered illegal just because it does not have HGU, even though the IUP is published before the new regulation is implemented. Assessing the legal activities of the past with new legal standards that have not been valid at that time is a form of violation of non-retroactive principles. There should be no reversal of legal time,” he said.

Independent Verification: PT ANA is not proven to have violated the rules and show constructive efforts
To ensure transparency and objectivity, Econusantara (ENS), an independent third party institution, was appointed to conduct a thorough investigation of the accusations that were filed. Their report, released in October 2023, presents a different key finding from the narrative circulating.

Econusantara Chief Executive Officer, Zulfahmi, stated, “Data and facts that are used as the basis of complaints by NGOs cannot be clearly proven in the field. Many parties involved do not even understand complaints comprehensively.”
Zulfahmi stressed that the conclusion of the results of the ES field verification was not found evidence of human rights violations, illegal deforestation, or environmental violations by PT Ana.

“The operational location of PT Ana is in APL (other use area), not a forest area. There is no evidence of river closure or the expulsion of the community. In fact, we see an active and open conflict resolution mechanism,” said Zulfahmi.

ENS also noted that PT Ana has had an AMDAL document since 2008, a peaceful social conflict resolution approach, and form an active complaint mechanism that is open to local communities. The report released by October 2023 said that the social conflict that emerged was mostly triggered by many overlapping claims of PT Ana’s land from SKT (Land Certificate) informal that did not go through legal or spatial verification, and did not always be registered in the official agrarian system.

Meanwhile, through a public statement accessed through the AAL website, the PT Ana parent company emphasized its commitment to responsible operations. As a public company, it is stated that all company activities are carried out based on official licensing and compliance with law in Indonesia and provide openness to the public by referring to the principle of Good Corporate Governance (GCG).

Related to accusations to three of its subsidiaries in Sulawesi including PT Ana, the company insisted to invite all parties to constructively sit together including NGO Walhi and Foe. In addition to dialogue, PT Ana is currently also in handling HGU, completing compensation and conducting social audits.

The company is also sure, in starting a business PT Ana has complied with the principles of free, prior, and informed consent (FPIC) in the context of Indonesian law. This is facilitated through committee B, a legal forum involving local governments, BPN and local communities to ensure the process of releasing land is transparent and fair. The company has also made an action plan as a follow -up to the ES field verification report. (IDS)