End of Moratorium Raises Environmental Concerns in Indonesia

Indonesia’s three-year moratorium on new palm plantations ended in 19 September 2021 and so far, the government has yet to indicate whether the freeze will be extended. Without clear regulations, environmentalists are understandably worried about the possible spikes in deforestation rates. There are also concerns that the issues identified during the implementation of the moratorium, such as the 3.4 million hectares of illegal plantations, have not been fully addressed.

Experts and activists are thus calling for a renewal of the moratorium, citing that verbal assurances from the officials that no new permit applications will be entertained are not sufficient.

A photo of a palm oil plantation in the Jambi province. Credit: Antara Foto/Wahdi Septiawan/via REUTERS/CNA

Instead of the moratorium, it would seem that the government will now rely on the infamous Omnibus Law to address the problem of oil palm concessions within forest areas. In an interview with Reuters, President Joko Widodo stated that he has “ordered for this to be inserted in the law so that we don't have to renew it every time it expires... So when (the country's) leadership changes, there is no change in policy.” While it does not prohibit new plantation permits, the 2020 regulations did stipulate that new palm oil concessions are capped at 100,000 hectares, although there is notably no limit to the number of plantations allowed annually.