Socfindo HGU Extension Controversy: Public Urges KPK to Examine Permit Renewal Mechanism After Expiration
PRESS RELEASE
SDICTV MEDIA
Socfindo HGU Extension Controversy: Public Urges KPK to Examine Permit Renewal Mechanism After Expiration
Batu Bara, SDICTV.ID – The controversy surrounding the extension of the Land Cultivation Rights Permit (Hak Guna Usaha/HGU) for the oil palm plantation operated by PT Socfin Indonesia (Socfindo) has once again attracted public attention. The issue emerged following statements from an internal company source claiming that the HGU renewal process continued despite the reported expiration of the permit.
The disclosure has sparked widespread speculation among the public, particularly regarding the administrative mechanism used in the renewal process. Various parties have questioned whether any special treatment or administrative leniency allowed the company to continue its plantation operations while the legal status of the land remained under review.
An internal source familiar with the company's administrative procedures stated that an HGU extension application can continue to be processed even after the permit has expired.
"If the HGU has expired, the renewal application can still proceed. The purpose is to ensure that plantation operations do not come to a halt," the source said.
The statement has prompted responses from agrarian observers and civil society activists, who argue that if operational activities are indeed being tolerated on land whose HGU has expired, such a situation could raise legal and governance concerns, particularly regarding the management of state assets.
Several experts emphasized that the principle of legal certainty must remain the primary foundation in the management of large-scale plantation land. They stressed that every HGU renewal process must be conducted transparently, accountably, and in full compliance with applicable laws and regulations.
Public pressure is now increasingly directed toward the Indonesian Corruption Eradication Commission (KPK), with calls for a comprehensive review of the HGU renewal process currently under public scrutiny. Supporters of such an investigation argue that it is necessary to ensure the absence of irregularities, conflicts of interest, or practices that could potentially harm state interests and local communities.
An agrarian activist interviewed in Batu Bara Regency on Monday (June 8, 2026) stated that all procedures related to HGU administration should be fully disclosed to the public.
"If there are mechanisms that bypass formal regulations, they must be transparently revealed. There should be no double standards in law enforcement or public administrative services," the activist said.
Information circulating among local stakeholders indicates that PT Socfindo's HGU for the Tanah Gambus plantation area in Batu Bara Regency expired on December 31, 2023. The situation has subsequently raised questions regarding the legal basis for the company's ongoing operations and the status of the administrative renewal process.
In addition, studies presented by several community groups suggest that a number of corporate obligations have yet to be fully fulfilled, including matters related to the rights and interests of communities living around the plantation area.
Based on these concerns, various parties have urged local authorities to conduct a comprehensive evaluation of the proposed renewal of the former HGU covering approximately 3,373.11 hectares. Regional governments are considered to play a crucial role in ensuring that legal, social, and community interests are thoroughly assessed before any extension decision is issued.
The growing public attention surrounding the Socfindo HGU issue demonstrates that plantation land governance is no longer viewed merely as an administrative matter. Instead, it has become part of a broader public demand for transparency, accountability, and legal certainty—issues that continue to attract attention at both regional and national levels.
---
Company Director: Samri Sinaga
Editor-in-Chief I: Rudi Harahap
Editor-in-Chief II: Sopian
Deputy Editor-in-Chief: Awaluddin Sanur, S.Pd.I
Editor: M. Ramadhani
SDICTV.ID