Indonesian Palm Oil News (IPO News), Merauke — Tunas Sawa Erma (TSE) Group, through PT Papua Agro Lestari (PAL), is strengthening its commitment to community empowerment through the development of an indigenous community-based plasma plantation in Merauke, South Papua.

PAL has allocated 20% of its Hak Guna Usaha (HGU) area to Koperasi Serba Usaha Inggyash Ghuzi for the development of a plasma plantation, in accordance with applicable Indonesian regulations.

The initiative is notable because the plantation will be developed and managed under a self-managed model, with the cooperative working together with its appointed implementation partner, PT Bina Papua Luhurkarya (BPL).

HGU CERTIFICATE NOW HELD BY THE COOPERATIVE

The HGU transfer process was carried out by applying the principles of Free, Prior and Informed Consent (FPIC) and was facilitated by an independent consultant, AZ Law Office Conflict Resolution Center. TSE Group stated that the community had expressed its consent to the proposed HGU transfer for plasma plantation development.

The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) subsequently issued the official approval for the HGU transfer from PT Papua Agro Lestari. Following the issuance of the relevant decree and HGU certificate, Koperasi Inggyash Ghuzi now holds the HGU for the development of the plasma plantation.

TSE: SUPPORTING SUSTAINABLE COMMUNITY DEVELOPMENT

In its official statement dated August 14, 2026, TSE Group emphasized that PT Papua Agro Lestari will continue supporting sustainable community development through its Corporate Social Contributions (CSC) programs.

TSE Group Management stated:

“PT Papua Agro Lestari akan terus berkomitmen untuk mendukung pembangunan masyarakat secara berkelanjutan melalui program Corporate Social Contributions (CSC).” The management added that the commitment is part of the company’s philosophy of building harmonious, beneficial and sustainable relationships with communities and stakeholders for mutual progress and prosperity.

TARGETING APPROXIMATELY 3,700 HECTARES

Koperasi Inggyash Ghuzi holds an HGU covering approximately 4,607.2 hectares. Of this area, around 3,755 hectares are planned for oil palm development, while approximately 852 hectares are maintained as High Conservation Value (HCV) areas.

The plantation development is planned to be carried out gradually. The community has targeted approximately 500 hectares during the first year, followed by further development in the second and third years until the plantation reaches approximately 3,700 hectares.

The development is expected to involve nine clans in Ulilin District and become part of a broader effort to strengthen the participation of indigenous communities in the local palm oil economy.

A SELF MANAGED PLASMA MODEL

The self managed approach gives the cooperative a more active role in the development and management of the plantation. Rather than simply receiving the proceeds from a plantation operated entirely by another party, the cooperative will participate directly in managing the plantation together with its appointed implementation partner.

PT Bina Papua Luhurkarya will support the development and management of the plantation by applying Good Agricultural Practices (GAP) and Best Management Practices (BMP).

The model is therefore expected to create not only plantation assets for the cooperative, but also opportunities for local communities to develop knowledge and management capabilities in the palm oil sector.

STRENGTHENING THE LOCAL ECONOMY

For TSE Group, the plasma plantation is part of its broader approach to building sustainable relationships with communities and stakeholders. The development also represents an important opportunity for the indigenous communities involved to participate more actively in the palm oil value chain and benefit from the long term development of plantation assets.

According to data from Indonesian Palm Oil News (IPO NEWS), the development of Koperasi Inggyash Ghuzi is worth monitoring because it combines three important elements: HGU ownership by the cooperative, indigenous community participation, and a self managed plantation model.

With the HGU certificate now held by Koperasi Inggyash Ghuzi, the next stage will be the gradual development of the plantation toward its target of approximately 3,700 hectares.

For TSE Group, the initiative is also part of its continuing effort to develop a palm oil business that is connected not only with production, but also with community empowerment and sustainable development in South Papua.

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