Half of Indonesia's Palm Oil Land is Owned by Private Companies

The Indonesian government, through the Ministry of Forestry and Environment (KLHK), is currently processing 2.3 million hectares (ha) of palm oil plantations located within forest areas. This evaluation is conducted in accordance with Presidential Instruction (Inpres) Number 8 of 2018 concerning the Moratorium and Evaluation of Palm Oil Permits and the Improvement of Palm Oil Plantation Productivity. This moratorium on the expansion of palm oil land is expected to be the beginning of a resolution to land conflicts between communities and palm oil plantation management corporations.

Based on data from the Ministry of Agriculture, the area of palm oil land in Indonesia in 2017 reached 12.3 million ha. Of this amount, 6.8 million ha, or 55.24%, was managed by Large Private Estates (PBS). Approximately 4.8 million ha (38.64%) was managed by Large State-Owned Enterprises (PBN), while the remaining 753,000 hectares belonged to People's Plantations.

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The Inpres regarding the palm oil land moratorium aims to provide legal certainty and to maintain and protect environmental sustainability, including reducing greenhouse gas emissions. The massive expansion of palm oil land is considered to contribute to increased carbon gas emissions. Furthermore, the three-year moratorium on expansion is also intended to improve the standards of palm oil management in the international arena through the issuance of Indonesia Sustainable Palm Oil (ISPO) certification.