AreaIndonesia

Commodity GroupOilseeds, oils and meals

CommodityOil palm

Date01/08/2019

Policy CategoryOther

Policy InstrumentLand governance

DescriptionDetermined that a large part of the country’s oil-palm plantations are in breach of a range of state regulations, notably regarding cultivation permits, access to protected areas, the allocation of land to smallholder farmers, the rights of indigenous communities, and national sustainability standards. To address the issues raised, the Government is considering legal actions, including fines against non-compliant companies.

NotesIndonesia’s audit agency BKP determined that a large part of the country’s oil palm plantations are in breach of a range of state regulations, notably regarding cultivation permits, access to protected areas, the allocation of land to smallholder farmers, the rights of indigenous communities, and national sustainability standards. BKP’s findings confirm the results of a recent audit conducted by the country’s Corruption Eradication Commission KPK (see MPPU Dec.’18). Reportedly, to address the issues raised, the Government is considering legal actions, including fines against non-compliant companies. BKP also recommended the involvement of law enforcement officials to follow up on the audit’s findings.