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President Joko Widodo plans Moratorium on Indonesia’s New Palm Oil Concessions

Posted on : 09 May, 2016

 

In line with the drive towards sustainability, world’s largest palm oil producer – Indonesia will soon initiate a moratorium on new palm oil concessions.

 

This was mentioned by the country’s President Joko Widodo – seen as a move to step up Indonesia’s measures to reduce palm oil sector's impact on the environment.

 

Indonesia has come under international ire for its annual "haze" that is caused by forest-clearing for palm and pulp plantations as well as peatland fires.

 

The President has stressed that palm oil growers need to utilize the land already issued to them. He added that the current area could be more than twice as productive "provided they use the right seeds".

 

With the moratorium, palm oil growers will no longer get concessions for palm oil mining.

 

Besides this, there are also other initiatives taken to ensure sustainability in the palm oil sector – major palm oil producers – including Wilmar International, Cargill Inc and Golden Agri Resources signed the Indonesian Palm Oil Pledge in 2014.

 

However, this pledge to cut deforestation was viewed as too stringent for smallholders in Indonesia who contribute as much as 40 percent of the country’s palm output.

 

More on sustainable measures in the palm oil sector will be discussed at 8th ASIA Sustainable Oil Palm Summit on 4-5 August, 2016 in Yogyakarta.

 

For more information, contact Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218.

 

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