Palm oil producers and environmental activists alike have expressed dismay at a move by European officials to phase out palm-oil based biofuel by 2030. Officials in Indonesia and Malaysia - who together produce 85% of palm oil globally - say the move is discriminatory and have vowed a vigorous response, including lobbying EU member states, bringing the matter before the World Trade Organisation, and imposing retaliatory measures on EU goods.
Environmental activists, on the other hand, say the policy does not go far enough leaving loopholes allowing palm oil to be treated as a renewable fuel, allowing continued expansion of palm plantations into peat forests. They also criticize the policy’s failure to label soybean oil as high risk, with growing evidence that soy cultivation may have greater deforestation risks than palm oil.

Fashion designer, Stella McCartney, launched #THERESHEGROWS on Instagram to raise awareness of the endangered Leuser ecosystem in Sumatra, Indonesia.
The campaign supports Canopy’s work to conserve Leuser, the last stronghold for orangutans, rhinos, elephants and tigers to co-exist in the wild. Canopy works alongside local and international NGOs and local decision-makers to protect the 6.5 million-acres rainforest, encouraging a conservation-based economy in the region.

The World Economic Forum recently published research suggesting consumers in a few key emerging market producer countries (Indonesia and Brazil) and importing countries (China and India) together account for 40% of global consumption of the four commodities most associated with tropical deforestation—soy, beef, palm, and wood products. The authors project that by 2025 demand for these commodities within these four countries could increase by 43%, resulting in forest areas equivalent to the size of Nigeria being cut down every. Increasing demand for meat and calorie-rich foods, regulatory changes, and shifts in constraints for domestic production will all be key factors in fueling demand in these emerging market economies.

FSC has sent a "come clean" ultimatum to APP and its billionaire Indonesian owners, the Widjaja family, following evidence it continues to cut down tropical forests and operate through corporate proxies. A letter was sent to the pulp and paper giant on Monday which sets out the demands FSC expect APP to meet if they want to be readmitted to the council. The ultimatum comes after Greenpeace ended a five year truce with the company earlier this month following an investigation that revealed the company had been destroying tropical forests the entire time the two parties were cooperating on conservation. FSC have demanded APP respond to their letter by Monday, stating publicly their high level commitment to the council’s standards and proposing remedies to Greenpeace’s evidence of deforestation. By June 11th the company will also have to fully disclose their corporate structure and any other violations of the standards.

A union of palm oil smallholders is challenging the allocation of a billion-dollar fund that they say fails to help them rejuvenate their low-yielding oil palms and instead unfairly subsidizes large biofuel producers. Only 1 percent of the fund went to the smallholder replanting program last year, while 89 percent went to the biodiesel subsidy. The government has promised to amend the split to 22:70 this year. But the government has also defended the subsidy, saying it needs to artificially boost the price of crude palm oil, to make biodiesel competitive with the regular diesel sold in the country — which is also subsidized by the state.

A report by WRI shows ongoing deforestation in an oil palm concession in Papua, Indonesia, operated by a subsidiary of South Korea’s POSCO Daewoo. The company has responded by saying its operations in Papua are legal and fully permitted.
Concerns over deforestation by POSCO Daewoo have prompted other companies to say they will not allow its palm oil into their supply chains. These include big-name brands such as Clorox, Colgate Palmolive, IKEA, L’Oreal, Mars and Unilever. POSCO Daewoo has issued a temporary moratorium on land clearing in its Papua concession and hired a consultant to advise it on how to proceed with its operations there.

One subsidiary of Asia Pacific Resources International Limited (April), Riau Andalan Pulp and Paper (Rapp), has constructed a 3km canal through thick peatland on the island of Pedang, Indonesia, which has led to the suspension of their partnership with WWF and Greenpeace. The canal is built for draining peatland for pulp plantations, which is against both the company’s sustainability standards, and also government regulations. However, the president and director of Rapp insisted the action is legal based on a plan approved by the Indonesian government back in 2013, which was before the catastrophic fires of 2015.

In November 2016 WWF Indonesia suspended its membership of APRIL's Stakeholder Advisory Committee because of a lack of progress implementing their sustainable forest management plan, failing to abide by government policy on peatland protection, and a lack of transparency on business operations.

WWF have called on APRIL to have independent, third party verification on their progress with the forest management plan, as well as filling policy gaps to address deforestation in High Conservation Value forest and High Carbon Stock forest, as well as social issues and peat development.

President of Indonesia signed into law on Dec. 1, a new crucial regulation on peatland management, intending to call time on untrammelled commercial development of the archipelago’s vast peat swamp zones, which have been widely drained and dried by the palm oil and paper industries. The new regulation was praised by some observers as previously peatland development was only mandated by presidential guidelines. However, environmental pressure groups said that the new regulation may continue to trigger fires and the collapse of peat ecosystems. Greenpeace and Wetlands International say the government has not done enough to move on from destructive land use.

According to research by Greenpeace's Energy desk, Malaysian IOI Group, which is one of the biggest world's producers of palm oil and which exports its production to the European Union, is related to deforestation processes and violations of labour law in Indonesia. Following the publication of a report, Greenpeace activists have blockaded a palm oil refinery owned by IOI in the port of Rotterdam.

Researchers from Harvard and Columbia universities in the US estimated there were more than 90,000 early deaths in Indonesia in areas closest to haze-belching fires, and several thousand more in neighbouring Singapore and Malaysia. The new estimate, reached using a complex analytical model by combining satellite data with models of health impacts from smoke exposure and readings from pollution monitoring stations, is far higher than the previous official death toll given by authorities of just 19 deaths in Indonesia. It triggered calls for action to tackle the “killer haze”.

From 15 November special licences issued by Jakarta will certify the legality of timber products destined for the EU such as pulp, plywood and furniture. This assurance system, will be independently audited to ensure the timber is legally sourced and meets environmental standards. Once the agreement takes effect from 15 November, timber exports from Indonesia that do not carry this certification will be prohibited from trade within the EU.

President Joko ‘Jokowi’ Widodo’s plan to ban new palm oil permits is being supported by Indonesia’s forestry ministry. The ban, announced in April, has spared 851,000 hectares of land from conversion with 61 proposals from palm oil companies being rejected. The rapid expansion of palm oil plays a key part in deforestation across the country and was also a prime cause of the fire and haze crisis in 2015.

A recent study released by 12 international and Indonesian NGOs reveal that Asia Pulp &Paper (APP) is building one of the world’s largest pulp mills without a sustainable wood supply in South Sumatra. This analysis indicates that the current planted area owned by APP is insufficient in supporting this new mill as well as the 2 existing mills. This report suggests that APP may fail to meet its ‘zero deforestation commitments’ made in 2013 which included ‘100% sustainable plantation wood for pulp’.

Leonardo DiCaprio’s comments on the destruction of the rainforests in Indonesia are being criticised by Indonesia’s environment and forestry minister, Siti Nurbaya. Following his visit last month to the Mount Leuser National Park in northern Sumatra, DiCaprio posted on social media that ‘palm oil expansion is destroying this unique place’. Nurbaya shared that it was rather unfortunate that DiCaprio didn’t obtain comprehensive information about deforestations issues in Indonesia and that the current government are working hard to protect the environment.