[Jakarta, 6 July 2021] The Presidential Instruction on the Palm Oil Moratorium is a key policy instrument that offers Indonesia a major opportunity to untangle and resolve long-standing governance issues in the palm oil sector. Poor governance in Indonesia’s palm oil industry has long been a major obstacle to achieving sustainability and securing global market acceptance. Unfortunately, the moratorium is set to expire on 19 September 2021—even though its implementation is far from complete and its objectives have not yet been fully achieved.

That said, positive impacts from the policy are already visible in several regions that have responded constructively to its implementation. For this reason, the Palm Oil Moratorium is not only important to extend, but urgent to strengthen so it can truly meet its goals,” said Sri Palupi, researcher at The Institute for Ecosoc Rights, responding to the upcoming expiration of the moratorium.

Conceptually, the policy is highly strategic. However, its implementation has not been optimal. One of the main challenges has been the absence of specific and measurable targets. Strengthening the legal framework with clear benchmarks—such as productivity improvements and concrete permit review targets—is therefore essential.

Rahmadha, Palm Oil Campaigner at Kaoem Telapak, stated that the Indonesian government is currently on the right track toward achieving sustainable palm oil governance, as reflected in the moratorium policy. This is fundamental to maintaining Indonesia’s palm oil acceptance in the global market. However, that strategic opportunity could be lost if the regulation is not extended. Unresolved issues such as incomplete permit reviews and ongoing social conflicts may trigger negative sentiment in global markets—especially given that export markets are projected to continue dominating Indonesia’s palm oil consumption through 2024.

Maintaining and strengthening global trust in sustainably produced Indonesian palm oil is crucial. Each year, around 19 percent of global crude palm oil (CPO) consumption and demand comes from certified sustainable palm oil.

Inda Fatinaware, Executive Director of Sawit Watch, added that the moratorium also responds directly to international market demands for sustainable palm oil products. The policy serves as a tool for the Indonesian government to improve governance and ensure palm oil products meet global standards. Better plantation governance will also contribute to a more positive investment climate in Indonesia.

The extension of the moratorium is not only important for the central government, but also for regional administrations to address overlapping land-use issues. One notable example is the commitment of the West Papua Provincial Government, working together with the Corruption Eradication Commission (KPK), to review the permits of 30 palm oil plantation companies over the past two years. As a result, 14 plantation permits were revoked by the district head, with plans to revoke four more in the province. Similar steps should be taken by other regional governments to resolve comparable issues.

“Beyond simply revoking permits, the future Palm Oil Moratorium policy must function as a corrective measure to address oil palm plantations located within forest areas. One key step is to require that all remaining forest cover within concession areas be restored as forest zones, designated as High Conservation Value (HCV) areas, or managed under customary forest schemes. It is also crucial that future moratorium policies are not only reported to the President but also made publicly accessible to ensure transparency,” said Arie Rompas, Head of the Forest Campaign Team at Greenpeace.

Media Contacts:

Arie Rompas – Head of Forest Campaign Team, Greenpeace
Phone: +62 811 5200 822

Inda Fatinaware – Executive Director, Sawit Watch
Phone: +62 811 448 677

Sri Palupi – Researcher, The Institute for Ecosoc Rights
Phone: +62 813 1917 3650

Rahmadha – Palm Oil Campaigner, Kaoem Telapak
Phone: +62 812 8813 5152