Jump to Navigation
Jump to Content

INDONESIA REVOKES PALM OIL PERMIT AFTER CLEARING BAN BREACH

10/01/2012

The Aceh province in Indonesia revoked a controversial palm oil permit issued to a firm accused of breaching a forest clearing ban. "It is important that there is rule of law in business and investing in Aceh, which provides benefits to the community," said the director of the Aceh chapter of the Indonesian Forum for the Environment. Last May, Indonesia agreed to set a two-year moratorium on new permits to clear primary forests and peatlands as part of a $1 billion deal with Norway. However, Aceh's governor breached the ban last year by granting a permit for PT Kallista Alam to develop 4,000 acres of swamp. The move prompted legal action from environmental groups and probes from government bodies, which led to the permit being revoked. Nationwide, the country's goal of protecting its tropical rainforests is limited by a soaring global demand for palm oil, used in food and biofuel, and Indonesia's exports of the product earn $20 billion a year. For the full story, see http://uk.reuters.com/article/2012/09/28/us-indonesia-forests-palm-idUKBRE88R09T20120928 and http://www.thejakartaglobe.com/news/aceh-pulls-plug-on-kallista-plantation/547143. Earlier: http://elr.info/international/international-update/indonesia-bans-forest-cutting-two-years-0