Chain Reaction Research: Indonesia’s Palm Oil Landbank Expansion Limited by Proposed Moratorium and NDPE Policies

Key Findings

  • Outside these existing concession areas, there is a material loophole in the
    proposed moratorium for land classified as ‘convertible production forest’
    (HPK). However, this loophole is essentially closed by stranded land risks caused
    by NDPE policies.
  • West Kalimantan has 2.2 million ha of land suitable land for palm oil
    development outside of its current licensed palm oil concessions. But, because
    of the moratorium and NDPE policies, at most 2.6 percent of this land is
    available for future viable oil palm concessions.
  • Likely responses to NDPE market innovations and the moratorium are an
    increase in smallholder investments, industry consolidation and vertical
  • Productivity improvements and international expansion are less likely to
    materialize in the short term.

Click here to download the report.

The Chain Reaction Research is a consortium effort of Aidenvironment, Climate Advisers and Profundo.

For more information, please contact Tim Steinweg.

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