English Document:
Author
Executive Summary Policy Paper on the Urgency of Improving Palm Oil Governance through a Moratorium on Permit Issuance, from an Economic Perspective and Environmental Carrying and Assimilative Capacity (ECCAC), 2024
Indonesia’s palm oil industry faces economic, social, and environmental challenges, where land expansion does not always improve local welfare. Global regulatory pressure and low sustainability certification levels also call for better governance.
A moratorium on palm oil permits combined with replanting is considered to deliver better long-term economic outcomes than expansion. This scenario is projected to raise GDP, income, tax revenue, and employment.
The D3TLH study sets Indonesia’s oil palm cap at about 18.15 million hectares and shows many regions have exceeded environmental limits. Therefore, governance reform and halting new permits are seen as crucial for economic and environmental sustainability.
