The area of oil palm plantations in Indonesia has now reached 22.2 million hectares (Sawit Watch, 2018) with 30% of them owned by farmers. The oil palm plantation industry currently has a large contribution to the national economy, with exports of crude palm oil (CPO) reaching 12% of national exports with total production in 2016 reaching 31 million tons. The export contribution reached US $ 17, 8 billion or Rp.231.4 trillion. Domestically, the use of biodiesel fuel sourced from palm oil is increasingly being intensified by the Government of Indonesia. The government itself targets CPO production to 40 million tons / year by 2020.
However, oil palm plantations in Indonesia have a variety of problems ranging from environmental damage, agrarian conflicts, neglected labor conditions, threats to food availability and others. Sawit Watch (2016) noted that there were 782 communities in conflict with large oil palm plantations.
President Joko Widodo on April 14, 2016 stated that he would temporarily suspend the moratorium on oil palm and coal licenses. This commitment was finally realized in a policy in the form of Presidential Instruction (Inpres) No. 8 of 2018 concerning Postponement and Evaluation of Licensing of Oil Palm Plantations and Increased Productivity of Oil Palm Plantations.
Through this policy, the government tries to improve the management of sustainable oil palm plantations, provide legal certainty, safeguard and protect environmental sustainability including reducing GHG emissions, and to increase the development of oil palm farmers and increase the productivity of oil palm plantations.
The moratorium and evaluation of oil palm plantations is a good momentum to improve the management of oil palm plantations in Indonesia. This paper hopes to provide information regarding the challenges of the implementation of Presidential Instruction 8 of 2018, and further elaboration on how to link this policy with other policies so that this Inpres can be grounded and implemented properly with the limited time given, ie 3 years.