Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia promounces the importance of involving local communities in investment projects in the regions.

The message was conveyed by Bahlil at the Coordination Meeting for the Acceleration of Sugar and Bioethanol Self-Sufficiency in Merauke Regency, South Papua Province held in Jakarta on Wednesday, May 15, 2024.

Previously, on April 19, 2024, President Joko “Jokowi” Widodo signed Presidential Decree No. 15/2024 on the Task Force for the Acceleration of Sugar and Bioethanol Self-Sufficiency in Merauke Regency, South Papua Province. The Task Force aims to accelerate the integration of plantation investment activities with the sugar industry, bioethanol, and biomass power plants in Merauke Regency, South Papua Province.

As a follow-up on the Presidential Decree, the government will develop sugarcane plantations integrated with the sugar and bioethanol industries covering an area of two million hectares in Merauke Regency. Divided into four clusters, the investment involves investors from state-owned enterprises (SOEs) and the private sector.

In realizing the investment, Bahlil, who is also Chairman of the Task Force, revealed that he has told investors to not only pay attention to the rights of local communities, but also involve them to collaborate in carrying out their business activities.

"I said that we can invest there, but we must ensure the rights of the region. We pay attention to regional rights, we pay attention to the release of customary [land]. And there must be local people who participate in the business," he said.

On the occasion, Bahlil revealed the core-plasma partnership scheme that will be applied in the development of integrated sugarcane plantations in Merauke Regency. In the scheme, the nucleus (investor) has the duty to assist the plasma (local community) in developing plantations managed by the community.

The support can be in the form of financing, technological assistance, and various other coaching, so that the plasma gets the harvest that will be processed by investors. This must be done so that the industry and local communities can progress together.

"So that there is no [occurrence of] the core advancing, but the plasma dies. Usually we have palm oil like that. The core lives, the plasma dies," Bahlil said.

Furthermore, Bahlil also revealed that the success of the nucleus-plasma scheme would provide benefits for various parties.

"National interest is realized, food security. Investment is growing, profit is generated. But local and regional communities also get a share. It cannot be ignored. All is a unity," Bahlil concluded.