Indonesia Inches Closer to 180,000-Hectare Target, Bolstering Sustainable Palm Oil Ambitions

In 2023, Indonesia approved the replanting of 53,012 hectares of palm oil trees owned by smallholder farmers under a subsidized program, as reported by the country's palm oil funding agency (BPDPKS). This marks an increase from the 30,759 hectares approved in 2022 but falls short of Indonesia's annual target of 180,000 hectares. The BPDPKS is responsible for distributing subsidies aimed at supporting the replanting of palm oil trees in the nation.

Indonesia, being the world's leading palm oil producer, aims to replant palm trees on smallholders' land each year to boost output without resorting to further deforestation. This initiative becomes crucial as palm oil yields decline while demand for vegetable oil, including biodiesel production, continues to rise. The smallholder palm replanting scheme, launched in 2016, initially targeted replacing around 2.5 million hectares of old trees by 2025. However, as of the end of 2023, only 326,308 hectares have been approved for replanting, with an actual replanting of 205,524 hectares.