Contrary to previous statements, the government will
not revoke existing forestry licenses for palm oil firms as part of a
deal with Norway to preserve rain forests, a government minister and an
industry official said on Wednesday.
Coordinating Minister for
the Economy Hatta Rajasa said the government had no intention of
limiting the expansion of the $15 billion domestic palm oil industry,
although it was committed to slowing deforestation.
"We want to
keep to our target of 40 million tons of crude palm oil," he said on the
sidelines of an industry conference. "We will not take away the
existing licenses.
"We have food-security interests and our
export earnings to protect, but expansion will be at a sustainable pace
for our future generations."
Hatta's statement was the latest
attempt to clarify the impact of the moratorium on clearing of natural
forests. The two-year moratorium was announced last month as part of a
$1 billion deal with Norway to fight climate change.
Agus
Purnomo, head of the National Climate Change Council, had said on Monday
that some licenses to develop natural forests would be revoked, and
said on Tuesday that those would only be revoked if work had not begun
at the site.
His statements prompted claims from the palm oil
industry that the moratorium would dramatically slow growth, by up to
half over the next decade.
However, Indonesian Palm Oil Board
(DMSI) vice chairman Derom Bangun said on Wednesday that the government
had clarified its intentions.
"The government has assured us
that the expansion of oil palm estates will continue within reasonable
limits," Derom said.
Leaving existing licenses untouched would
allow top planters like Singapore-listed Wilmar and Malaysia's Sime
Darby to continue developing concessions.
Click here for original article