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The forest moratorium policy is widely considered crucial for protecting Indonesia's remaining forests and mitigating global climate change. According to Indonesian government data, Indonesia's tropical natural forest area in 2017 reached 89.4 million hectares, the third largest in the world, covering nearly half, or 47.5 percent, of Indonesia's land area. However, Indonesia's forests are also disappearing at a rapid rate. According to the FAO, Indonesia had the second-fastest rate of forest loss in the world between 2010 and 2015, after Brazil, with deforestation at 684,000 hectares per year.

The Indonesian government emphasizes the effectiveness of the forest moratorium policy in reducing deforestation. According to the government, deforestation in Indonesia decreased by 20 percent after the moratorium was implemented, and by 38 percent if only the PIPPIB areas are calculated. However, deforestation and forest and land fires continue to occur throughout the archipelago, including in the moratorium areas. Greenpeace analysis states that the average annual deforestation rate in the moratorium areas after the policy was implemented (2012-2018) was higher than before the policy was implemented (2005-2011), at 137,000 hectares per year compared to 97,000 hectares per year, although the government has denied this claim.

In the eight years since the moratorium was implemented, the area of ​​primary natural forest and peatland protected by the moratorium policy decreased by 3 million hectares from 69 million hectares in 2011 to 66 million hectares in 2018. On August 7, 2019, President Joko Widodo finally made this policy permanent through Presidential Instruction Number 5 of 2019 concerning the Cessation of New Permits and Improvement of Governance of Primary Natural Forests and Peatlands, 18 days after the previous Presidential Instruction ended on July 17, 2019.

This Critical Note examines the scope of natural forest and peatland protection provided by Presidential Instruction No. 5 of 2019, including its various exceptions, and examines the implementation of the moratorium policy to date. The Critical Note concludes with key questions that we hope will spark constructive dialogue among stakeholders to improve the protection of Indonesia's natural forests and peatlands going forward, particularly during the first period of Indonesia's climate commitment (NDC), which will begin in January 2020.