Palm Oil & the Environment: The Moratorium on Palm Oil Plantations for Local Communities and the Environment

The Moratorium on Palm Oil Plantations for local communities and the environment. Credit photo. RMSP.

Indonesia and Malaysia together control about 85% of the world's palm oil plantations. However, the expansion of palm oil plantations in Indonesia has raised significant concerns due to its impact on deforestation. 

Since 2011, the Indonesian government has recognized the environmental risks and has begun implementing measures to curb the large-scale expansion of palm oil plantations.

Palm Oil Plantation Moratorium: A Policy protecting the environment

In response to concerns about deforestation, President Susilo Bambang Yudhoyono announced a moratorium on palm oil plantations in 2011. This temporary policy aimed to halt or limit the expansion of palm oil plantations by protecting an area of 5.18 million square kilometers. The moratorium reflects Indonesia's commitment to ensuring environmental sustainability and reducing the negative impacts often associated with the palm oil industry.

Since its announcement, the moratorium has undergone several revisions and extensions. The policy is backed by a series of regulations aimed at restricting the expansion of palm oil plantations, including:

1. Presidential Regulation No. 10 of 2011 – The first moratorium, which prohibited new palm oil plantation licenses in primary forests and peatlands while allowing existing plantations to continue.

2. Presidential Regulation No. 61 of 2016 – Extended the moratorium for three more years, strengthening protections for primary forests and peatlands.

3. Presidential Regulation No. 20 of 2018 – Reinforced the moratorium with additional rules, including a ban on expansion into peatlands and river ecosystems.

4. Presidential Regulation No. 44 of 2020 – Extended the moratorium until 2024, imposing stringent requirements for new plantation permits and taking into account the environmental impact of palm oil operations.

Balancing Environmental protection with local community welfare

While not all regions in Indonesia are suitable for palm oil cultivation, the moratorium has become an essential step in combating deforestation, protecting vital ecosystems, and ensuring the well-being of local communities. For example, Java, with its dense population, is not ideal for palm oil plantations due to land scarcity, high land prices, and economic challenges. In contrast, areas like Kalimantan and Papua are more suitable, but face challenges related to infrastructure and labor availability.

This policy aims to preserve natural resources while fostering economic growth. Additionally, it helps prevent land conflicts, protects the rights of local communities, and ensures that palm oil development does not harm the environment or the livelihoods of the people involved.

The Importance of Community Oversight in Implementing the Moratorium

Despite the good intentions behind the moratorium, violations often occur, driven by greed and the desire to open new plantations. In areas where palm oil plantations are about to be established, local communities must actively monitor and question the legal compliance and "good intentions" of companies applying the Roundtable on Sustainable Palm Oil (RSPO) standards and their broader impact.

Community involvement is crucial to ensure that companies comply with all environmental and legal requirements, including land use permits and waste management practices. This means monitoring the permitting process and confirming that companies are genuinely committed to minimizing environmental and social harm.

Furthermore, communities should consider the "trickle-down" effect, or how the presence of palm oil companies affects local well-being and livelihoods. It is essential to empower communities to participate in decision-making processes, ensuring that the economic benefits of these companies are fairly and sustainably shared by those most affected.

The Moratorium as a path toward sustainability

The palm oil moratorium serves not only as a means of protecting the environment but also plays a vital role in ensuring the welfare of communities involved in the palm oil industry. It demonstrates Indonesia's commitment to balancing economic growth with environmental preservation. 

With strict oversight and active community participation, the palm oil industry can operate responsibly, in line with the sustainability goals that all stakeholders—businesses, governments, and local communities—aspire to achieve.

-- Rangkaya Bada