Sustainability Spotlight: Indonesian Palm Oil Production After EUDR

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Activities in the palm oil plantation. Photo by: Sawit Fest 2021 / Muh Reski Sesar

PALMOILMAGAZINE, JAKARTA – Indonesia, the world’s largest palm oil producer, is confronting significant challenges in achieving sustainable production. The European Union Deforestation Regulation (EUDR) has taken center stage in discussions, drawing the attention of the government, stakeholders, and economists.

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The Central Bureau of Statistics (CBS) in the West Bangka district highlighted that palm oil holds the highest position among the top 10 commodities in personal agricultural businesses. However, the global discourse on sustainability has intensified, especially following the publication of the EUDR.

As quoted from Kontan.co.id, in a focus group discussion (FGD) that Institute for Development of Economics and Finance (Indef) did, the representatives of Ministry of External Affairs Indonesian Republic, Emilia H Elisa told that EUDR is the internal regulation in the continent without involving producer countries including Indonesia. The Government of Indonesia claimed ‘Not Comply’ about the policy (regulation).

Also Read : 5 Results of Cooperation between Indonesia and Malaysia in Facing EUDR

Chairman in Plantation Indonesian Palm Oil Association (IPOA), Azis Hidayat told that IPOA is with the government, rejecting EUDR. But Exective Director of Indef, Tauhid Ahmad remined that the regulation would deliver impacts to palm oil products from Indonesia in a very long time while the markets in Europe would be no more in short term.

Though rejecting EUDR, Indonesia needs to accelerate in anticipating the regulation. Emilia thought that it is important to get support in reinforcing Rencana Aksi Nasional Kelapa Sawit Berkelanjutan (RAN-KSB) as the way to promote palm oil as same as the social and environmental standards.

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Executive Director of Yayasan Ekonomi Inklusif Biru Hijau Indonesia (YEIBHI), Sunny W.H. Reetz told that downstream industries would be the alternative to minimize the impacts from EUDR. Badan Perencanaan Pembangunan Nasional (Bappenas) put downstream industries in palm oil into Rencana Pembangunan Jangka Menengah Nasional (RPJMN). (T2)

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