Regulating the Management of State-Owned Plantations to Improve Public Welfare

Abstract

The plantation industry cluster plays an important and strategic role in national development, especially in improving the prosperity and welfare of the people, increasing foreign exchange reserves, providing employment, maintaining value and competitiveness, meeting domestic consumption and industrial raw material needs, and managing natural resources sustainably. The government manages natural resources through state-owned enterprises as regulated in Law 19 of 2003 concerning State-Owned Enterprises. Since the issuance of Government Regulation Number 72 of 2014, PT Perkebunan Nusantara III has become the holding company of PTPN I, II, IV, to XIV. This is normative juridical research that is prescriptive and uses the statute and conceptual approaches. Data is sourced from primary, secondary, and tertiary legal materials, which are analyzed qualitatively. This study indicates that state-owned plantations conduct activities on a substantial amount of land to provide the most significant benefit for the people. As stated in both the preamble and Article 33 of the 1945 Constitution, the State's goals align with this indication. The objective to improve public welfare is on equal priority with obtaining profits. The management of state-owned plantations is regulated in several laws and regulations with the same goal, namely realizing the State's responsibility to improve public welfare.