AreaIndonesia

Commodity GroupOilseeds, oils and meals

CommodityOil palm

Date01/11/2018

Policy CategoryProduction

Policy InstrumentSector development measures

DescriptionReleased funds for the replanting of 15 000 hectares (ha) of smallholder oil palm with quality seedlings – as part of the national target to replant 2.4 million ha between 2018 and 2025.

NotesIn Indonesia, recent efforts to halt the expansion in oil palm plantations went hand in hand with the launch of palm replanting programmes aimed at enhancing productivity and yields on existing estates. According to the media, the government’s ambitious scheme to replant, between 2018 and 2025, a total of 2.4 million hectares cultivated by smallholders (i.e. about one fifth of the nation’s area under oil palm) with quality seedlings is running well behind schedule. Reportedly, as of November 2018, the Government, which offered to provide a IDR 25 million (USD 1 753) subsidies per hectare, had released funds for the replanting of no more than 15 000 hectares. (See also MPPU Dec.’17 & May’18)