• About
  • Forestry Investment
  • World Forestry Update
  • Archives
  • Categories
  • Opening up Palm Oil Plantations

    2010 - 02.26

    The Indonesian Ministry of Forestry said on Monday that in order to meet its ambitious emission reduction targets it plans to issue a new regulation that will allow commercial forestry companies to plant palm oil crops in new concession areas.

    This mixed forest regulation is intended by the Ministry to help those companies survive the low timber prices at present and enable them to grow biofuel to alleviate the country’s current energy shortage.

    As expected environmental groups are angered and dismayed at this news as they warn that the plan would accelerate deforestation, which contributes to global warming.

    In its defence Hadi Daryanto, general director of forest protection at the ministry, said that the regulation would be issued soon but would only apply to forestry concessions granted after it took effect.

    Currently the Indonesian government holds 44.3 million hectares of forest with a further 36.8 million hectares of commercial forest. The new regulation would stipulate that a minimum of 49% of forestry concessions would be used for planting commercial forests and up to 21% could be used to plant crops. The left over 30% would be set aside for conservation and for the use of local communities.

    This isn’t the first time this plan has been thought up. In 1999 a similar regulation was issued and then swiftly withdrawn after the majority of forestry companies used the land to plant more commercial forests than permitted. Due to the ministry’s advanced monitoring system Hadi is optimistic that the companies will adhere to the rules this time around.

    Elfian Effendi, the executive director of Greenomics Indonesia, disagrees and said that the group strongly opposes bringing back the failed regulation.
    “The ministry will repeat the failure, since forestry companies will prefer to plant palm oil because it’s more profitable than planting commercial forests,” Elfian said.

    Elfian went on to stress that even without the regulation most forestry companies had illegally planted palm oil plantations.

    The Timber Investment Blog is sponsored by Greenwood Management. For more information on investing in Forestry please click here

    One Response to “Opening up Palm Oil Plantations”

    1. Agus, SE says:

      Oil Palm Plantation Investors Seek Concessions

      We are owners of 24,800 Ha of Land Concessions for Oil Palm Plantation.

      Land already has the authority to plantations and is suitable for
      Grade A produce palm oil. What can easily access. 30 minutes from the
      international airport under construction Morowali Indonesia

      We are looking for investors who want to invest in Plantation
      Oil and cooperate with us (supply management).

      In addition to this land we can provide an area of 200 thousand hectares
      In Sulawesi Island, Indonesia, we are also helping investors to deal
      with the government about all the requirements that investors must meet.

      We are glad to hear feedback from the intrseting Investors in this business.


      Agus, SE
      Koperasi Rezki Alam
      Email: aguslatif43@gmail.com
      Phone +62812 8388 5642

    Your Reply