Indonesia’s proposed ban on forest clearing is unlikely to impact palm oil production in the short term as growth from new plantings in previous years remain in the pipeline, a government official said on Tuesday.
Palm oil output in the world’s No.1 producer could rise to 22-23 million tonnes in 2011 versus a projected 21 million tonnes this year, said Mukti Sarjono, acting director general of plantations with the Agriculture Ministry.
“Palm oil production will still be good next year and in 2012 because the growth in output will come from planting in previous years,” Sarjono told reporters at the sidelines of the Roundtable on Sustainable Palm Oil in Jakarta.
“But the ban may impact production in 2014 and 2015.”
Norway this year signed a $1 billion climate deal with Indonesia, which involves a two-year ban on forest clearing from next year and encourages palm oil companies to turn to degraded land to expand.
Increasing scrutiny by green groups and consumers in Europe have slowed oil palm expansion in Indonesia to about 250,000 hectares per annum from a peak of 400,000 hectares at the height of the commodity rally in 2007-2008.
