[Jakarta, 21 September 2018] Presidential Instruction No. 8/2018 on the Suspension and Evaluation of Oil Palm Plantation Licensing and the Improvement of Oil Palm Productivity (the Palm Oil Moratorium Instruction) represents a strategic first step toward resolving the complex and chaotic governance of palm oil licensing. This includes addressing overlapping permits with forest areas and safeguarding the remaining natural forests within state forest zones.

However, this will only succeed if all instructed officials implement the directive consistently, supported by strong political leadership from the President. Broad support and close oversight from all stakeholders are crucial, given that the licensing evaluation process and other presidential mandates must be completed within three years.

“This signals that the government—particularly the eight officials receiving the instruction—must work quickly alongside other stakeholders, while prioritizing transparency of licensing data and information,” said Teguh Surya, Executive Director of Yayasan Madani Berkelanjutan.

This long-awaited Presidential Instruction, anticipated for more than two years, contains several positive government initiatives. These include:

• suspending the release or land-swapping of forest areas for new oil palm plantation applications;

• evaluating existing decrees that have already released forest land for plantations; and

• enforcing legal action against illegal plantations operating within forest zones.

Forest areas previously released for palm oil plantations may even be returned to forest status if they meet certain criteria.

“This Instruction reflects an important initiative to prioritize improving land productivity rather than expanding further into forest areas,” said Anggalia Putri, Director of the Forest and Climate Program at Yayasan Madani Berkelanjutan.

The President also mandated an evaluation of the implementation of the 20% allocation requirement for smallholder plantations, as well as the ускорение of land titling for smallholder oil palm farmers. However, this 20% allocation rule needs further clarification, as stakeholders still hold differing interpretations, and to prevent large-scale plantation expansion under the guise of “smallholder development.”

Madani stressed that implementing this Instruction will face significant challenges that require collective vigilance:

1. The 2019 Presidential Election Momentum

There is concern that the eight instructed officials may lose focus due to electoral politics and political alliances. After the election, cabinet reshuffles are likely, raising the risk that the moratorium will not be fully integrated into the new government’s work plan—or may even lose priority altogether.

2. Limited Transparency in the One Map Policy

Progress on Indonesia’s One Map Policy remains unclear and increasingly closed, both in terms of process and data access authority. Restrictions are reflected in Presidential Decree No. 20/2018, which regulates access to geospatial data through the national geospatial information network.

3. Strengthening the Upcoming ISPO Presidential Regulation

The President must ensure that the forthcoming Presidential Regulation on ISPO contains strong standards (Principles and Criteria), including:

• legal compliance

• good plantation management

• protection of natural forests, peatlands, and the environment

• responsibility toward workers

• social responsibility and community economic empowerment

• continuous improvement

• traceability and transparency

• respect for human rights

4. Ensuring an Independent Working Team

The Working Team to be established must be independent and include representation from civil society and Indigenous Peoples. It must also be free from palm oil corporate interference to avoid corruption, political transactions, and the whitewashing of corporate violations or licensing irregularities. Transparency in process, data, and licensing information is essential and serves as the last line of defense for the moratorium’s success.

5. Establishing Clear Indicators of Success

The government must define measurable benchmarks for the moratorium’s success over the next three years. This includes:

• the extent of permit suspensions

• evaluation of forest release and land-swap licenses used for plantations

• identification of areas not developed or misused

• implementation of High Conservation Value Forest (HCVF) protection measures

Given the magnitude of these challenges and the importance of this policy, Madani reiterated the need for multi-stakeholder oversight to ensure successful implementation, including internal government monitoring and meaningful civil society engagement.

“The palm oil moratorium is only the first step. There is no other way forward except through collective cooperation to improve palm oil governance, safeguard forests, and ensure community welfare,” Teguh Surya concluded.

Media Contacts

• Muhammad Teguh Surya
  Executive Director, Yayasan Madani Berkelanjutan
  teguh.surya@madaniberkelanjutan.id | +62 819-1519-1979

• Anggalia Putri Permatasari
  Director of Forest and Climate Change Program
  anggalia.putri@madaniberkelanjutan.id | +62 856-2118-997

• Melodya Apriliana
  Digital Communication Campaigner
  melodya.a@madaniberkelanjutan.id | +62 838-4227-2452