45/2025 on administrative sanctions in the forestry sector is expected to provide greater legal certainty without undermining Indonesia’s investment climate, academics said. According to Zainal, the palm oil industry plays a strategic role as a growth pole for East Kalimantan’s economy. Unlike extractive commodities such as coal, which are non-renewable, palm oil can continue generating economic value through productivity improvements and replanting programs, he said. If regulatory uncertainty or additional administrative requirements increase investment costs, companies’ cost of capital could also rise, potentially pushing up production costs and weakening the competitiveness of Indonesia’s palm oil industry. The Borneo Forum 2026 was supported by the Plantation Fund Management Agency (BPDP) and brought together stakeholders to discuss regulatory, investment and development challenges facing East Kalimantan’s palm oil industry.