BENGKAYANG — Bengkayang Regent Sebastianus Darwis has threatened to revoke the business licenses of plantation companies that refuse to comply with permit requirements, drawing a clear line for the dozens of palm oil firms operating across the West Kalimantan regency. The warning came on Sunday as the regional government pushed to tighten investment governance in the area.
Darwis was blunt. Companies that have completed their permit obligations will receive legal certainty from the regional government. But for those ignoring the rules, revoking their plantation business license — known as IUP — is no longer just talk.
“For companies that have properly managed their permits, we will provide legal certainty. But for those who are not committed and non-compliant, we will not hesitate to revoke their Plantation Business License,” Darwis said.
Plantation Licenses as a Tool to Enforce Investment Order
The move comes as palm oil investment in Bengkayang continues to expand, yet not all operators have completed their land and business administration requirements. In practice, a plantation business license is more than a formal document — it is the legal foundation for a company’s operations and the primary channel through which the government exercises oversight.
Darwis framed the policy as a classic reward-and-punishment mechanism. Compliant companies gain certainty. Those who ignore obligations face sanctions. The message is straightforward: the regency welcomes investment, but not at the cost of regulatory order.
He also urged plantation businesses to look beyond profit margins and land expansion. Investment, he argued, must deliver tangible benefits to local communities, operate within the rules, and help protect the environment. That expectation is particularly relevant for a palm oil-producing region like Bengkayang, which has long navigated three overlapping challenges: land tenure certainty, regional revenue, and social relations with communities living near plantations.
The compliance stakes are real. When a company’s documents are in order, the government can more easily enforce obligations, map business zones, and ensure the correct fiscal contributions are made. When permits remain unresolved, the regency struggles to measure how much actual benefit any given company is delivering.
Darwis believes business and regional government need to reinforce each other. Investment, he said, should drive regional development, create structured employment, and support environmental conservation. The ask is not complicated. The government simply does not want plantations to grow large while the region keeps groping for benefits.
Only 9 of 38 Companies Hold Land Cultivation Rights
The data tells its own story. Bengkayang Regional Legislature Deputy Chairman Esidorus revealed that of 38 palm oil plantation companies operating in the regency, only nine have secured a Hak Guna Usaha — land cultivation rights, or HGU.
That number matters. It means the majority of companies have yet to fully complete their land documentation. In plantation governance, the HGU is a cornerstone document that provides solid legal grounding for land tenure and use. Without it, the status of a plot can be challenged at any time, and disputes can erupt without warning.
“Bengkayang has extraordinary resources and palm oil plantation investment is very large, yet there has been no real benefit to the region,” Esidorus said.
He identified two compounding problems. First, legal certainty over land tenure becomes murky. Second, the regency risks losing revenue it should rightfully collect — including from the Land and Building Rights Acquisition Duty, known as BPHTB, which is one source of locally generated income.
The problem does not stop at fiscal leakage. When land legality remains unresolved, government oversight weakens alongside it. The regency still bears the social and environmental consequences of plantation activity, but has limited room to ensure a fair share of the economic benefits. Completing HGU and permit processes, then, is not merely an administrative matter. It is about securing what the region is owed.
Esidorus also cautioned that large investment figures on paper do not automatically translate to large impact on the ground. Communities are waiting for tangible results: land certainty, clear job creation, and rising regional income. Without those, a palm oil plantation may look busy from the outside while contributing almost nothing of substance to Bengkayang.
Legislature Pushes for Firm Sanctions
The Bengkayang Regional Legislature has thrown its weight behind the regent’s enforcement push. Esidorus called on the regional government not to hesitate in taking action against companies that have not met their permit obligations — and went further, saying licenses of non-compliant companies should be revoked if necessary.
“The legislature asks the regent to be firm with rogue companies. Enforce the rules — revoke their business licenses if needed,” Esidorus said.
That demand sends a strong political signal. The regional government does not want to appear soft on large corporations, especially when violations involve permit compliance. In many plantation regions, weak enforcement has historically put local governments in a weak negotiating position against corporations. Bengkayang appears to be trying to break that pattern.
For residents living in areas that directly border palm oil plantations, this kind of firmness has practical meaning. If the government follows through on enforcing IUP and HGU requirements, the risk of land disputes can be reduced, regional rights better protected, and companies pushed to meet their obligations properly. If not, old problems will repeat: unclear land boundaries, suboptimal regional revenue, and a persistent gap between companies and the communities around them.
What comes next will be closely watched. Whether the threat to revoke plantation business licenses translates into real enforcement action — or simply serves as a sharp warning for companies to clean up their paperwork — will determine whether Bengkayang’s plantation governance actually moves in a new direction.
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