Indonesia’s Palm Oil Market is Unique

Indonesia’s Palm Oil Market is Unique

Lecturer of University of Indonesia and economist in INDEF, Berly Martawardaya

InfoSAWIT, JAKARTA – Palm oil market in Indonesia is quite unique. Besides as the main crude palm oil (CPO) producer, the fact is that Indonesia is the main certified crude palm oil (CSPO) producer in the world. But the products deriving from undamaging environment are seldom to get in Indonesia’s markets. If they exist, there are few only. Most of them are imported still to get.

Lecturer of University of Indonesia, who is also the economist in INDEF, Berly Martawardaya, said, it takes some longer time so that the people of Indonesia concern about the environmental products.

Still about increasing the concern in environmental products, it needs to make demand on the qualified products deriving from undamaging environment. “It needs seleration without waiting for the people for they might not be able to concern about that (environment),” he recently said.

Indonesia, he continued, has started to improve palm oil industries to implement sustainable practices. And it is potential to do. There have been some instutions focusing the scheme of sustainability, such as, Roundtable on Sustainable Palm Oil (RSPO). Since the last five years, government of Indonesia has the standard in sustainable palm oil cultivation that is summarized in Indonesian Sustainable Palm Oil (ISPO).

He thought, ISPO policy is good enough to implement. Its goal is to the environment in Indonesia. It means, it adopts the environmental interests in the domestic. “ISPO is ours so other countries do not buy it,” he said.

Then when will the citizen of Indonesia concern about the environment and when the industries start implementing the sustainability voluntarily and massively? Of course, it needs researches and good calculation and it needs more time.

One thing for sure, he said, it needs to name the plantation companies that have implemented sustainable cultivation and got RSPO certificate to the public. They could be samples for other companies which do not implement sustainable practice yet.

This could be supported by the demand on the sustainable products from the people. He admitted, it still needs time but it is potential to do.(T2)

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