Complaint on : PT Hati Prima Agro (a subsidiary of Bumitama Agri Ltd.)
PT Hati Prima Agro (a subsidiary of Bumitama Agri Ltd.)
Central Kalimantan, Indonesia
Oil Palm Grower
02 July 2012
Principle 2 RSPO P & C Compliance with applicable laws and regulations
As a result of the revocation of the Forest Relinguishment Decree (“2008 Decree”) on June 2012 over its area by the local government,. PT Hati Prima Agro’s Permit & License validity and legality have been called into question Subsequently, the issuance of Wood Utilization License (IPK) to UD Karya Budi by the Kotawaringin Timur Forestry Agency in Antang Kalang Kotawaringin Timur District, Central Kalimantan was alleged not to be inaccordance with national laws of Indonesia.
Box F response complete
The member has been informed and RSPO is facilitating discussions and dialogue in seeking a clarification.
The member has instituted legal proceedings in the district administrative courts against the local government to challenge the revocation of the company’s permit and is now awaiting the outcome of the court case.
On 4 December 2012, after examining the legal facts found during the court hearing session, the Palangkaraya State Administrative Court ruled the following:
i) That the revocation of the Location Permit (Ijin Lokasi – Head of Kotawaringin Timur Regent’s decree no. 525.26/342/Ek.SDA/VI/2012 dated 21 June 2012), which revoked Prinsip Arahan Lokasi (Principle License), Ijin Lokasi (Location Permit), & Ijin Usaha Perkebunan (Plantation Business License) as void.
ii) Declared that the 2008 Decree of Revocation (Ministry of Forestry no. SK.51/Menhut-II/08 dated 11 March 2008, which revoked the Ministry of Forestry’s decree 186/KPTS-II/2000, dated 29 June 2000 of the relinquishment part of the forestry area of Sungai Mentaya) as void.
iii) Ordered the Head of Regency of Kotawaringin Timur to revoke the Revocation of location permit
iv) Ordered the Indonesian Ministry of Forestry to revoke the 2008 Decree of Revocation.
On 20 May 2013 the State Administrative High Court in a unanimous decision (Appeal Decision) in the favour of HPA which reaffirmed the Palangkaraya State Administrative Court Decision 12/G/2012/PTUN.PLK dated 4 December 2012. The Administrative High Court decided that the legal considerations of the Palangkaraya Administrative Court Decision were already appropriate and legally correct.
On 27 June 2013 only one of the defendants, the Indonesian Ministry of Forestry submitted an appeal to the Supreme Court to challenge the decision of revocation of 2008 Decree of revocation, while the Head of Regency did not submitt an appeal to challenge the Administrative Court Decision which ordered to revoke the Revocation of Location Permit. As of this letter the case is on the Supreme Court’s docket waiting to be heard.
In December 2013, HPA received official notice of appeal from the Palangkaraya Administrative Court that the defendants, the Head of Regency and Ministry of Forestry to the legal proceedings (Appellants) lodged an appeal on the Administrative Court Decision to the State Administrative High Court.