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Indonesian Palm Oil Farmers Reject Jambi Mill Moratorium Plan, Warn of Higher Costs
['August', 'Wib']
Palmoilmagazine.com
PALMOILMAGAZINE, JAMBI — Indonesia’s palm oil farmer organizations have rejected a plan by the Jambi provincial government to impose a moratorium on new palm oil mills, warning that the policy could hurt independent smallholders and constrain the development of the province’s downstream palm oil industry.
The Indonesian Palm Oil Farmers Organization (POPSI) and the National Palm Oil Farmers Network (JPSN) Jambi chapter issued the objections in response to Jambi Governor Letter No.
1637/DISBUN-3/VII/2026 dated July 27, 2026, requesting palm oil mill data from eight regencies as part of preparations for the proposed moratorium.
The fewer palm oil mills operating in a region, Darto said, the farther farmers may have to transport their fresh fruit bunches (FFB) to buyers.
He said the government should instead prioritize stronger traceability systems through more comprehensive registration of cultivation certificates (STDB), faster Indonesian Sustainable Palm Oil (ISPO) and Roundtable on Sustainable Palm Oil (RSPO) certification, and broader smallholder empowerment.