Moratorium on Oil Palm Plantation Permits Aimed to Resolve Oil Palm Problem

Thursday, November 1, 2018

Indonesia’s Coordinating Minister for Economic Affairs Darmin Nasution said the three-year moratorium on new permits to convert forest land into oil palm plantations is aimed at resolving various issues related to the management of oil palm plantations, the Antara news reported.  Darmin noted that some medium and large scale companies still hold permits to manage oil palm plantation on forest land and have not been registered well.  By resolving the permit-related problems, the oil palm plantations can meet international standard in accordance with Indonesian Sustainable Palm Oil (ISPO) which is still doubted and has sparked debates on the quality of products, he said.

The moratorium on new oil palm plantation permits is also useful to revitalize 2.3 million hectares of oil palm plantations found on forested land. Overall, the moratorium is in line with Presidential Regulation No. 88 of 2017 on settling the control of land on forested land, Presidential Instruction No. 8 of 2018 on postponing and evaluating oil palm permits and increasing the productivity of oil palm plantations and Presidential Regulation No. 86 of 2018 on agrarian reforms. The three regulations were issued with the aim of rearranging licensing, supporting people-oriented interests and settling overlapping land problems.

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