parties that caused the damage are obliged to pay or indemnify the
damages. ‘Parties’ in this case refer to both individuals and corporations.
Some land dispute cases between indigenous people and palm oil
corporations have been settled through this mechanism.
r Criminal process. On the issue of plantations, Law Number 39 of 2014
criminalizes the illegal management, use, occupation, and/or holding
of indigenous land for plantation purposes (Art. 55(b)). There are also
more general provisions under Article 2 Law No. 51/PRP/1960 and
the Indonesian Criminal Code penalizing anyone who occupies land
unlawfully (Article 167, 385 Penal Code).
State-based non-judicial mechanisms
Alternative dispute resolution. Law Number 30 of 1999 on Arbitration
and Alternative Dispute Resolution provides an avenue for parties to
settle their dispute outside the judicial system through consultation,
negotiation, conciliation, or utilization of expert opinions.
r Environmental compliance. On environmental issues, Law No. 32 of
2009 on Management and Environmental Protection requires a number
of different institutions to monitor compliance. This includes local
government at the provincial and district or city levels, the Ministry of
Environment and other related ministries, such as the Commission for
Environmental Impact Assessment, police, prosecutors, and courts.
r Land conflict resolution under the National Land Agency. Decree
No. 3 of 2011 on Assessment and Land Cases Management provides
an avenue for parties to settle their disputes. However, in terms of
effectiveness, a number of studies have shown that the National Land
Agency is ineffective and unable to resolve the majority of conflicts
within a reasonable time (Susan, 2015).
r Indonesian Sustainable Palm Oil (ISPO). Indonesian Sustainable Palm
Oil (ISPO) is a governmental safeguard system and policy adopted by
the Ministry of Agriculture (ISPO, 2013). The purpose of the system is
to address environmental issues in the palm oil industry. So far, an area
of 1.9 million hectares of oil palm plantations, which can produce up
to 8.2 million tons of crude palm oil, has been certified under the ISPO
r
ANGOC and KPA
57
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