Markets and Trade
AreaIndonesia
Commodity GroupOilseeds, oils and meals
CommodityOil palm
Date01/10/2014
Policy CategoryConsumption and marketing
Policy InstrumentAgricultural policy
DescriptionIntroduced new legislation regulating plantation ownership, with a view to maximize land usage while ensuring adequate participation of smallholders in the plantation sector.
NotesAfter the government’s recent decision to develop new regulations on the conservation and management of peatland (see MPPU nov.’14), the Ministry of Environment has been instructed to review licenses for companies that have converted peatland to establish oil palm plantations. Reportedly, the Ministry will consider revoking permits of plantation concessions that are found to be at fault. Related recent government initiatives include the following: (i) the establishment of reference levels for measuring emissions from deforestation and peatland degradation, (ii) the enforcement of a temporary moratorium on all new logging permits, and (iii) the launch of an ambitious reforestation plan.