InfoSAWIT, JAKARTA - The first is the moratorium and intensification. The moratorium was published to the new license of palm oil plantations in the forest regions through President’s Instruction No.8 / 2018. It is for three years until in the end it is permanently run in the President’s Instruction No. 5 / 2019. The moratorium is for the corporate and big scale companies but not for the smallholders.
The simulation within IPOS showed that the moratorium decreased the deforestation but the FFB production would be less too. The BAU showed that there would be gaps of demand and supply. The implementation of moratorium is potential to magnify the gaps. That is why it needs the ways so that the decreasing production should have compensation. One thing to do is by implementing intensification.
Besides increasing the FFB production, it is potential to reduce the needs of conversion and logging cut to expand palm oil plantations (Nurfatriani et al., 2018). The simulation showed the increasing productivity up to 20% and would get production compensation when moratorium runs.
It needs to make law enforcement and forbid the expansion in the forest regions when the intensification to palm oil plantations runs. This is about to avoid ‘Jevons Paradox’ which means there would be increasing productivity to increase the income but does not stop the expansion. In the reverse, this would be the motivation to expand both done by the stakeholders and other new ones. (Herry Purnomo and Sonya Dyah Kusumadewi / Researchers of Center for International Forestry Research - CIFOR).
For more, please read InfoSAWIT, May 2020