Indonesia imposes moratorium on new palm oil plantations

Indonesia's president has signed a moratorium on new palm oil development and ordered a review of existing plantations, an official said Thursday, in a blow to an industry blamed for environmental destruction and worker exploitation.

Prabianto Mukti Wibowo, a deputy minister at the Coordinating Ministry for Economic Affairs, said the moratorium, first announced by president Joko Widodo after devastating fires in 2015, will last three years.

He told The Associated Press it's needed because many planned plantations are inside natural forests and also to clarify the legal rights of villagers and smallholders.

Palm oil, mainly produced in Malaysia and Indonesia, is used in a vast number of products globally from cosmetics to snacks and is a big export earner for both countries, though most of the profits go to a few conglomerates.

"In this presidential instruction, all central and provincial governments, including governors, mayors and district chiefs were ordered to re-evaluate permits," Wibowo said.

"It also instructs (them) to delay the opening of new palm oil plantations to reduce conflict."