The Moratorium on Palm Oil Plantations for local communities and the environment. Credit photo. RMSP. |
Indonesia and Malaysia together produce approximately 85% of the world’s palm oil. While this industry drives significant economic growth, especially in Indonesia, it also raises serious concerns—particularly around large-scale deforestation, ecological destruction, and conflicts with local and Indigenous communities.
The Palm Oil Moratorium
In 2011, recognizing the environmental and social risks of
unchecked expansion, then-President Susilo Bambang Yudhoyono issued a moratorium
on new palm oil plantations. This policy aimed to halt the rapid
destruction of forests and peatlands by freezing the issuance of new plantation
permits across 5.18 million square kilometers of vulnerable areas.
This marked a turning point in Indonesia’s environmental
policy—showing the country’s commitment to balancing economic development with
ecological sustainability.
Key Presidential Regulations Supporting the Moratorium
Since its introduction, the moratorium has been strengthened
through several presidential decrees:
- Presidential
Regulation No. 10 of 2011 – Prohibited the issuance of new licenses for
palm oil development in primary forests and peatlands.
- Presidential
Regulation No. 61 of 2016 – Extended the policy by three years and
reinforced protection measures.
- Presidential
Regulation No. 20 of 2018 – Introduced stricter rules, including bans on
expansion into peatlands and river ecosystems.
- Presidential Regulation No. 44 of 2020 – Extended the moratorium until 2024, requiring environmental impact assessments and stricter licensing procedures.
These regulations reflect a growing awareness of the need
for sustainable land use and resource governance.
Safeguarding Local Communities and Ecosystems
The moratorium not only protects forests but also safeguards
the rights and livelihoods of local communities. Not every region in Indonesia
is well-suited for palm oil cultivation. For example, Java faces land scarcity
and high population density, while Kalimantan and Papua offer more physical
space but lack infrastructure and adequate labor force.
The policy helps:
- Prevent
land grabbing and illegal encroachment.
- Reduce
social conflict.
- Protect
the land rights of Indigenous peoples.
- Promote long-term environmental and economic stability.
This balanced approach ensures that the development of the
palm oil sector does not come at the cost of ecological destruction or
community displacement.
Community Oversight Is Key to Enforcement
Despite good intentions, violations of the moratorium
continue to occur, often driven by corporate greed and weak enforcement. This
makes community engagement and oversight essential.
Local communities should:
- Monitor
the permit approval process.
- Demand
transparency from companies claiming compliance with RSPO (Roundtable on
Sustainable Palm Oil) standards.
- Scrutinize
environmental impact reports and waste management practices.
- Assess
whether the economic benefits of palm oil development are being fairly
distributed.
Empowered local oversight ensures that palm oil companies
uphold legal and ethical standards and that the moratorium produces real
results on the ground.
A Path Toward Sustainable Development
The palm oil moratorium serves not only as a shield against
environmental degradation but also as a mechanism for ensuring equitable
development. It reflects Indonesia’s larger vision of responsible growth—one
that honors ecosystems and uplifts local communities.
With strict regulation, transparent enforcement, and active
participation from local stakeholders, the palm oil industry can evolve into a
model for sustainable natural resource management.
-- Rangkaya Bada
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