Key insights and market outlook
The West Java Governor's ban on palm oil planting, issued through Circular Letter No. 187/PM.05.02.01/PEREK dated December 29, 2025, has raised concerns among farmers and industry stakeholders. The Indonesian Palm Oil Farmers Organization Association (POPSI) argues that this restriction could harm farmers' interests and needs to be evaluated considering the capacity of existing Palm Oil Mills (PKS).
The Governor of West Java, Dedi Mulyadi, issued a circular letter on December 29, 2025, banning the planting of palm oil in West Java. This decision was made through Circular Letter No. 187/PM.05.02.01/PEREK. The move has sparked a reaction from various stakeholders, particularly farmers and organizations representing their interests.
Mansuetus Darto, Chairman of POPSI, expressed concerns that the ban could negatively impact farmers. He emphasized the need to consider the existing capacity of Palm Oil Mills (PKS) in the region when evaluating the restriction. The capacity of these mills is a critical factor as they are part of the supply chain that directly affects farmers' livelihoods.
The ban on palm oil planting in West Java has significant implications for both farmers and the palm oil industry. While the governor's decision may be aimed at environmental or other concerns, its impact on the agricultural sector and related industries needs careful consideration. The restriction could lead to potential losses for farmers who have traditionally relied on palm oil cultivation.
The concerns raised by POPSI highlight the need for a balanced approach that considers both environmental concerns and the economic interests of farmers. A comprehensive evaluation of the ban's impact, including its effects on the capacity utilization of existing palm oil mills, is essential for developing a sustainable solution.
Palm Oil Planting Ban
Agricultural Policy Change