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Update on Stranded Assets of Indonesia’s Palm Oil Sector Report

In 2017, Chain Reaction Research (CRR) reported 6.1 million hectares (ha) of forest and peatland remained on oil palm concessions, land that can be considered “stranded assets.” This update discusses figures and trends in the palm oil industry since 2017 and argues that oil palm development on forest and peatland will remain economically unviable for the foreseeable future.

 

 

28 Percent of Indonesia’s Palm Oil Landbank Is Stranded

  • Since 2017, issuances of new concessions for oil palm plantations in Indonesia have come to a near halt whiledeforestation rates have dropped,
  • Undeveloped forest and peatland remain stranded assets in the palm oil sector,
  • Demand for recovery and restoration to compensate for past deforestation is an emerging trend,
  • Companies with stranded land in 2017 have used a range of strategies to handle these assets,
  • A possible solution to the stranded land conundrum is to allocate social forestry programs on stranded land.

 

For more information, please contact Tim Steinweg or Eric Wakker