| Summary: | This study examines the implication may arise by implementing reducing emission from
deforestation and forest degradation (REDD) on oil palm plantation investment subsector in Indonesia. The purposes of this research are: 1). To identify and analyze the legal certainty for investors in oil palm sub sector associated with the implementation of REDD schemes. 2). To identify and analyze the implications of the implementation of REDD schemes for investment in oil palm plantations subsector in Indonesia. This research refers to the Act No. 25 of 2007 on capital investment as orientation of this study. Other regulations support this research are Law No. 41 Year 1999 on Forestry, Law No. 18 of 2004 on Plantation, Government Regulation No. 10 of 2010 on Procedures and Changes of Utilization and Function of Forest Areas, the Minister of Agriculture Regulation No. 14/Permentan/PL.110/2/2009 on Peat Land Utilization Guidelines For Oil Palm Cultivation, and Presidential Instruction No. 10 Year 2011 on the Postponement of New License Provision and Completion of Management of Primary Natural Forest and Peat Land along with other regulations.
The approach method used in the research is descriptive analysis. The descriptive
analysis research is a legal research by using secondary data existed which are by comparing law, studying and analyzing law principles especially norm of positive law collected from literature materials which are also stated in law and provisions related to capital investment in palm oil plantation subsector and emission reduction from deforestation and forest degradation. The results show that the development of oil palm plantation continues to be supported considering the highly strategic role in support of the development. Various regulations are prepared to create a conducive climate escalating areas of oil palm plantations in Indonesia. Limitations of land in the development of oil palm plantation thrusts the exploitation of peat.
Peat land utilization is regulated by the Regulation of the Minister of Agriculture No.
14/Permentan/PL.110/2/2009 on Peat Land Utilization Guidelines for Oil Palm Cultivation. To run a REDD scheme, the Government of Indonesia has committed to reduce greenhouse gas emissions by conducting moratorium on granting new licenses for land clearing and the utilization of peat lands as stated in the Presidential Instruction No. 10 Year 2011 on the Postponement of New License Provision and Completion of Management of Primary Natural Forest and Peat Land. The emergence of the Inst ruction has led to legal uncertainty in oil palm plantation investment subsector as opposed to regulations that encourage the development of oil
palm plantation principally in the exploitation of peat land.
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