Jakarta, July 6, 2021. The Presidential Instruction on the Palm Oil Moratorium is a crucial instrument that provides Indonesia with a significant opportunity to address and resolve issues related to palm oil industry governance. Poor governance in the Indonesian palm oil industry has been a major obstacle to the realization of a sustainable palm oil industry and its acceptance in the global market. Unfortunately, the Presidential Instruction on the Palm Oil Moratorium will expire on September 19, 2021. However, the Instruction has not yet been fully implemented and has not yet fully achieved its objectives. However, the positive impacts of the Instruction's implementation are already evident in several regions that have responded positively to its implementation. Therefore, the Presidential Instruction on the Palm Oil Moratorium is crucial and urgent, not only to be extended but also to be strengthened to achieve its objectives. This was conveyed by Sri Palupi, a researcher from the Institute for Ecosoc Rights, in response to the impending expiration of the Presidential Instruction on the Palm Oil Moratorium.
Conceptually, this policy is highly strategic, but its implementation has not been optimal. This is due to various obstacles, such as the lack of specific targets. Therefore, strengthening the legal framework is necessary, including specific targets, such as increasing productivity and reviewing permits with clear targets.
Rahmadha, a palm oil campaigner at Kaoem Telapak, stated that the Indonesian government is currently on the right track in realizing sustainable palm oil governance, as reflected in the Presidential Instruction on the Palm Oil Moratorium. This is the essence of Indonesian palm oil's acceptance in the global market. However, this strategic opportunity could be lost if the regulation is not extended. Issues such as permit reviews and unresolved social conflicts could create negative sentiment in the global market. Furthermore, Indonesia's palm oil consumption projections until 2024 are still dominated by the export market.
Global trust in Indonesia's sustainable palm oil is paramount and must be maintained and enhanced by the Indonesian government. Annually, 19% of global CPO consumption and demand comes from certified sustainable palm oil. Inda Fatinaware, Executive Director of Sawit Watch, added that the Presidential Instruction on the Palm Oil Moratorium also addresses international market demand for sustainable palm oil products. This policy serves as a tool for the Indonesian government to improve governance to produce palm oil products that are acceptable to the global market. Furthermore, improved palm oil plantation governance will further enhance Indonesia's investment climate.
The extension of the palm oil moratorium is not only needed by the central government, but also by regional governments to address overlapping land use issues. One noteworthy step is the commitment of the West Papua government, along with the Corruption Eradication Commission (KPK), to review the permits of 30 palm oil plantation companies over the past two years. This resulted in the Regent revoking the permits of 14 palm oil companies and plans to revoke the permits of four companies in the conservation province. This is a step that other regional governments should take to address similar issues.
" More than simply revoking permits, the upcoming Palm Oil Moratorium policy should serve as a corrective measure to address palm oil development in forest areas. One way is to require all remaining forest cover within permits to be returned to forest areas, designated as HCV, or through customary forest schemes. It's important to emphasize that the upcoming Moratorium policy must not only be reported to the President but also published to the public to ensure transparency, " explained Arie Rompas, Head of the Greenpeace Forest Campaign Team.
Media Contact:
Arie Rompas, Head of the Greenpeace Forest Campaign Team, HP. 0811 5200 822
Inda Fatinaware, Executive Director of Sawit Watch, HP. 0811448677
Sri Palupi, Researcher at The Institute for Ecosoc Rights, HP. 0813 1917 3650
Rahmadha, Kaoem Telapak Palm Oil Campaigner, HP. 081288135152
