Government must be firm about oil palm plantation moratorium

"As entrepreneurs, we are confused and wonder which moratorium the government will impose. Therefore, we ask the government to make a decision soon," said the President Director of PT Sawit Sumbermas Sarana Tbk, Rimbun Situmorang to the press in Pangkalan Bun, Central Kalimantan, Tuesday.

President Joko Widodo in the Seribu Islands, (14/4) said the government plans to impose a moratorium on palm oil concessions in a number of Indonesian provinces.

Rimbun said that the government must be firm in issuing the moratorium policy, whether in relation to the opening of new palm oil plantations or the opening of palm oil plantations already permitted five years ago.

He reminded the national palm oil industry to date has made a large contribution to non-oil and gas export revenues, so deserves the government's full support.

"The government should support the palm oil industry by giving certainty of business and law," he said.

BPS data shows that in 2015 exports from the plantation sub-sector for palm oil products amounted to US$ 18.65 billion, while rubber was only US$ 4.75 billion, coconut US$ 1.35 billion, cocoa US$ 1.25 billion, and coffee US$ 1.10 billion.

Rimbun is afraid that if the government does not immediately give policy certainty, the palm oil industry will be adversely affected as a whole.

If indeed the government is concerned about the rapid expansion of palm oil plantations, it is not true because the national palm oil industry has already managed its operations well from upstream to downstream.

Another equally important thing, he said, is that the palm oil industry in Indonesia is able to employ millions of farmers and workers who depend on the plantation sector for their living.

The number of workers absorbed by the industry has increased from year to year, from 2.1 million in 2000 to 8.4 million in 2015.

"This shows that the palm oil industry is labor-intensive and absorbs a lot of workers," he said.

Separately, the Secretary-General of the Indonesian Palm Oil Business Association (Gapki) Togar Sitanggang said that he hopes the government's plan to issue a moratorium on the expansion of palm oil plantations will be considered because it will weaken the plantation sector that contributes to non-oil and gas exports.

"The government should first discuss whether a moratorium is necessary or not with the business community," he said.

Editor: Ruslan Burhani