PALMOILMAGAZINE, JAKARTA – Eddy Martono, the Chairman of the Indonesian Palm Oil Association (IPOA), expressed that the policy’s immediate effects would be limited, as the European Union Delegated Regulation (EUDR) would specifically apply to companies that expanded their plantations on or after December 31, 2020.
Eddy pointed out that Indonesia had initiated a moratorium on new palm oil plantings by companies since 2011. Furthermore, in 2019, President’s Instruction Number 5 / 2019 was issued, focusing on discontinuing the issuance of new permits and enhancing the management of peatlands and primary natural forests. “It means, there is no more new plantings for palm oil plantations,” he said.
But the problem is for the people (smallholders). Eddy thought, they could not implement the moratorium, and even the Laws Number 12 / 1992 about Plant Cultivation System and led them to plant any commodity as they will.
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“The regulation is available still. If they planted their commodity after 2020, it means, EUDR would block their production and (palm oil) companies would not purchase the people’s commodity. “If this happens, there would be social conflict around (palm oil plantation) companies. This is the impact for the companies,” Eddy explained to Palmoilmagazine.com recently.
He also confirmed that the social conflict would be happening. “The new planting after 2020 would deliver social issues,” Eddy said.
For information, European countries published European Union Deforestation Regulation (EUDR) which was officially inaugurated by European Board on 16 May 2023 and European Parliament on April 2023.
It starts since June 2023 while the implementation for stakeholders/traders would be for the next 18 (eighteen) months since the regulation started, and 24 months for small and medium businesses scale in Europe. (T2)
