Indonesia Palm Oil rule threatens 2020 output goal

In Indonesia, the new rule limiting plantation areas to 100,000 hectares for new palm oil firms threatens the country’s output goal of 40 million tonnes by 2020. The new law will require new palm plantation firms to offer a fifth of their land for development by local farmers where possible, and gradually divest 30 percent of new palm oil mills to co-operatives within 15 years of operation, said Deputy Agriculture Minister Rusman Heriawan. The law exempts state-owned firms, co-operatives, and listed firms held by small individual investors, as well as companies that already have plantation permits.

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