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