Indonesia to seriously expand oil palm and cocoa plantations

Indonesia has set a target of replanting 120,000 hectares of oil palm plantations and up to 10,000 hectares of cocoa plantations this year, The Edge Malaysia reported, citing State Plantation Fund Minister Eddy Abdurrahman.

“As for the re-planting of cocoa and coconut, regulations are being drafted, particularly the Minister of Agriculture’s regulation as a basis for re-planting,” the minister said at a parliamentary hearing.

The Agriculture Ministry estimates that 282,000 hectares, or more than 20 percent of Indonesia’s cocoa plantations, have been damaged, putting pressure on production. The government intends to replant between 5,000 and 10,000 hectares of cocoa and coconut plantations this year.

Indonesia is allocating 60 million rupiah (about $3,700) per hectare to replant unproductive oil palm plantations owned by small farmers. The agency did not disclose the amount to be provided for cocoa replanting.

In 2024, the agency financed the replanting of oil palm on an area of 38 thousand hectares, which was nevertheless below the planned 70 thousand hectares due to problems with the legality of land use.

Earlier it became known that the world cocoa reserves fell to a historic low of 21 thousand tons. The global deficit of cocoa beans amounted to 500 thousand tons, which is the largest indicator over the past 60 years.

Tags: Indonesia, palm oil