Indonesia’s palm oil production is under threat following the government's intensified efforts to regulate plantations within forest areas as ordered by the Ministry of Environment and Forestry (KLHK) under Ministerial Decree No. 36/2025 and Presidential Regulation No. 5/2025, which authorize the Ministry of Defense, the Attorney General’s Office, and law enforcement agencies to enforce plantation compliance. Palm oil production in Indonesia has already seen a decline, dropping from 54 million tons in 2023 to 52 million tons in 2024. Exports also fell from 32 million tons to 29 million tons during the same period. Indonesia is expanding its biodiesel program, targeting a B40 blend, which requires approximately 15 million tons of palm oil annually. A drop in production could affect exports, reducing foreign exchange earnings. In 2024, palm oil exports contributed US$27.76 billion (Rp440 trillion) to the national economy. If production declines as projected, 2025 earnings could fall below this figure, further strained by increased export taxes and levies reaching $230 per metric ton.Source : https://indonesiabusinesspost.com/3926/policy-and-governance/palm-oil-production-at-risk-amid-government-crackdown-on-forest-plantations (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 17/03/2025