The Government Will Enforce a Moratorium on Palm Oil Concessions

Bogor, April 20, 2016

President Joko Widodo on Thursday (14/4), stated that the government will impose a moratorium on new concessions for oil palm. The moratorium is intended as part of an effort to reduce the impact of the sector on the environment.

Indonesia has been criticized by environmentalists and countries in Southeast Asia because of its forestry policy. Additionally for failing to stop the problem of "smog" annual result of land clearing for palm oil plantations and pulp.

Palm oil is a major driver of economic growth in Indonesia. The industry is sensitive to the issue of environmental standards, which are used by food giants and global consumer goods such as Kellogg, Mars and Unilever, to determine which producers are acceptable.

"They can no longer ask for concessions for palm oil," said the president told reporters on Thursday when asked about plans for a moratorium. The president said he had spoken with the relevant ministers about the plan but did not say when the plan would run.

Based on the calculations of government, the territory that has been provided to the oil palm company can more than double its productivity "if they use the right seed," said president.

Agriculture Minister, Andi Amran Sulaiman said he agreed with the plan, adding that in terms of productivity, oil palm plantations Indonesia is far behind compared to Malaysia.

"We have to invest in sugar, corn and cattle," said Andi, stressed that Indonesia has become a top palm oil producer in the world and that the results of the existing plantations is expected to rise.


Sources: (150416)