Medan, North Sumatra (ANTARA News) - Coordinating Minister for Economic Affairs Hatta Rajasa has asked palm oil businessmen not to worry about a moratorium because the temporary restriction of oil palm plantation expansion will be applied only in certain locations.

"The moratorium is imposed also not because of foreign pressure. it should be made clear," the minister said, Thursday.

Minister Hatta was in Medan to address a palm oil conference and the Palm Oil Centennial Expo organized by the Indonesian Palm Oil Businessmen Association (Gapki) starting March 28.

The government has been committed to reducing carbon emissions by 26 percent until 2020, and it would be implemented with or without foreign assistance, he said.

According to Minister Hatta, the government has developed job descriptions for each agency to support carbon emission reduction of 26 percent.

He explained that the moratorium concept was just for premier forests and abandoned peat land, and it would not include forests which could be converted into infrastructure and crop farms.

As the population keeps growing, it`s impossible for Indonesia to reduce its crop farms and infrastructure areas, he added.

Gapki Chairman Joefly Bahroeny on the occasion said currently palm oil businessmen were worried about the future of their businesses also because of the moratorium issue.

He urged the government to continue supporting palm oil businessmen to maintain Indonesia`s position as the world`s largest palm oil producing country.

"However in the dialogs with the President and the Coordinating Minister for Economic Affairs, Gapki finally felt relief because the government supports efforts to make Indonesia a leading palm oil industry. Hopefully, this comes true," he said.

The Forestry Ministry is to implement a 2-year moratorium on the issuance of permits for the conversion of primary and peat forests this year soon.

"The moratorium will apply to primary and peat forests," said Forestry Minister Zulkifli Hasan said early this year.

He said the moratorium had been agreed on in an Indonesia-Norway Letter of Intent (LoI) signed by the two countries on May 26, 2010. This agreement stipulates that the two-year moratorium must start in January 2011 and reportedly in return Norway will provide US$1 billion to Indonesia.
(Uu.F001/H-NG)

Editor: Guntur Mulyo W
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