Limited impact seen from Indonesia moratorium

Malaysian palm oil futures fell more than 2 percent on Tuesday evening to a one-month low on expectations of rising production.

LOCAL planters with operations in Indonesia are not expected to be severely impacted by the latter’s recent decision to impose a three-year moratorium on new oil palm plantations, according to analysts.

The freeze on the permits for new oil palm developments and a review on existing plantations by Indonesia are seen as an extension of a five-year moratorium on new oil palm plantation concessions proposed in mid-2016 by Indonesia President Joko Widodo in an attempt to safeguard a healthy and sustainable environment.