The Palm Oil Moratorium Must Be Extended and Strengthened

The Palm Oil Moratorium Coalition is urging the government to immediately extend and strengthen the palm oil moratorium, which is set to expire

September 19, 2021

[Jakarta, 18 September 2021] The palm oil moratorium policy is set to expire in just a matter of hours. However, as of now, there has been no official statement from the government regarding its status. So far, the moratorium has yet to demonstrate significant progress in improving palm oil governance in Indonesia.

We, the Palm Oil Moratorium Coalition—comprising various civil society organizations concerned about the state of Indonesia’s palm oil governance—believe the moratorium must not only be extended, but also strengthened in multiple aspects.

Agung Ady, Campaigner at Forest Watch Indonesia (FWI), said:
“We strongly support extending the palm oil moratorium, but it must be implemented more seriously and transparently. The public needs to be more involved in the process—from permit evaluations to the dissemination of information down to the regional level. There should be no more local leaders failing to implement the policy simply because they received information too late.

The central government must also be open about any obstacles in implementation. If all stakeholders, including civil society organizations, are meaningfully involved, a proper system of checks and balances can ensure there is no blame-shifting and that the moratorium fulfills its mandate—improving palm oil governance toward genuine sustainability.”

One issue that is often overlooked is law enforcement. The Presidential Instruction mandates the Ministry of Environment and Forestry (KLHK) to take legal action and/or seek compensation for the illegal use of forest areas for oil palm plantations. However, no further instructions have been directed to law enforcement bodies such as the Attorney General’s Office or the Police for follow-up action. To date, there has been no public disclosure regarding its implementation.

Adrianus Eryan, Head of Forestry and Land Division at the Indonesian Center for Environmental Law (ICEL), emphasized that law enforcement is a critical component if the government is serious about reforming palm oil governance through the moratorium. If key mandates under the Presidential Instruction remain incomplete, it becomes even more urgent and relevant for the President to both extend and strengthen the policy.

Rahmadha, Palm Oil Campaigner at Kaoem Telapak (KT), added:
“Improving palm oil governance directly affects Indonesia’s palm oil acceptance in global markets. Major markets such as the European Union, the United Kingdom, and the United States are currently developing due diligence legislation to ensure that commodities sold in their markets are free from deforestation and land degradation. Palm oil is one of the commodities under consideration, alongside five others.”

Kaoem Telapak notes that due diligence frameworks being developed in the EU and the United States may introduce benchmarking schemes, where countries with a history of high deforestation would face stricter reporting and traceability requirements.

“If the palm oil moratorium is extended and strengthened in a way that genuinely improves governance, Indonesian palm oil could be categorized as low-risk, making market acceptance much easier,” Rahmadha added.

Inda Fatinaware, Executive Director of Sawit Watch, said:
“Although implementation has not been optimal, the achievements of the moratorium deserve appreciation. However, the broader goal of improving palm oil governance is still far from being realized. If the Presidential Instruction is not continued, the consequences would be alarming—forests would be at risk, palm oil expansion could continue unchecked, and social conflicts may intensify.

We therefore believe the moratorium must continue, with all mandated institutions carrying out their responsibilities seriously, setting clear and measurable targets, increasing transparency, and opening space for collaboration to achieve better governance.”

Andi Muttaqien, Deputy Director of the Institute for Policy Research and Advocacy (ELSAM), stressed:
“As the world’s largest palm oil exporter, improving plantation governance is becoming increasingly urgent for Indonesia, especially as global markets shift toward environmentally friendly, sustainable, and non-exploitative products.

The Palm Oil Moratorium is one of the government’s key policy instruments in responding to sustainability challenges in the palm oil sector, including overlapping concessions in forest areas that have also resulted in human rights concerns. The moratorium represents part of the State’s obligation and due diligence process in protecting communities—particularly in areas with high human rights violations, including palm oil concession zones. Therefore, it is crucial for the government to continue and strengthen this policy moving forward.”

Public support for extending the moratorium is also evident. A petition on Change.org titled “Mr. Jokowi, Please Extend the Palm Oil Moratorium to Keep Indonesia’s Forests Sustainable” has gathered 3,461 signatures calling for the policy to continue.

On Friday, 17 September 2021, the Palm Oil Moratorium Coalition also sent an open letter to President Joko Widodo urging the extension of the moratorium. The Coalition hopes the President will extend and strengthen the policy for the future of Indonesia’s forests.

Palm Oil Moratorium Coalition Contacts:

Agung Ady – Forest Watch Indonesia (FWI)
agung_ady@fwi.or.id | +62 853 3451 0487

Adrianus Eryan – Indonesian Center for Environmental Law (ICEL)
adri@icel.or.id | +62 813 8629 9786

Rahmadha – Kaoem Telapak (KT)
rahmadha.syah@kaoemtelapak.org | +62 881 0241 17796

Hadi Saputra – Sawit Watch
hadi@sawitwatch.or.id | +62 821 5457 4142

M.B. Fuad – ELSAM
+62 856 5500 4863