Conservation News: Indonesian Law Bars Palm Oil Companies From Protecting Forests

image courtesy of World Land Trust
image courtesy of World Land Trust

By Rhett Butler for Eco-Business

A law passed by the Indonesian government last month makes it even more difficult for palm oil companies to conserve tracts of wildlife-rich and carbon-dense forests within their concessions, potentially undermining these producers’ commitments to phase deforestation out of their supply chains, warns a new report published by Greenomics, an Indonesian environmental group.

The report focuses on the zero deforestation policy established in 2011 by Golden-Agri Resources (GAR), Indonesia s largest palm oil producer. It looks at how well that commitment is being implemented for a pilot project across eight concessions in West and Central Kalimantan, provinces in Indonesian Borneo.

…The problem is the lands GAR has set aside for conservation are classified as “plantable” by the Indonesian government. Under a September 29, 2014 revision to the Plantation Act, any area under a Hak Guna Usaha/HGU (Right of Cultivation) permit must be fully cleared and converted for its intended purpose within six years of the license being granted.

If the land isn’t cultivated, it can then be seized by the state and turned over to an entity that will convert the area. Any company that fails to abide by the regulation is subject to fines and revocation of its business license.

This excerpt from a news article appeared in and is courtesy of  Ec0-Business and can be read in its entirety here.

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