The Government Ensured that Palm Oil Industries Are Sustainable

The Government Ensured that Palm Oil Industries Are Sustainable

InfoSAWIT, JAKARTA – The government made sure that the sustainability of palm oil industries in Indonesia. Though there are lots of challenges from the external, some ways have and would always be done to maintain the important commodity for the economy of this nation.

“Palm oil sector is proven to increase the people’s welfare and conquer the poverty,” Coordinator Minister in Economy, Darmin Nasution said in a seminar in Jakarta, in the official statement to InfoSAWIT, Wednesday (31/7/2019).

Furthermore the exports in 2018 reached US$ 17,89 billion and contributed up to 3,5% to the Gross Domestic Products. From the energy security, the implementation of biodiesel mandatory program during August 2015 to June 30th, 2018, had saved the exchange up to US$ 2,52 billion, or equal to Rp 30 billion.

As the commitment to develop sustainable palm oil plantation, he continued, Indonesia has run Indonesian Sustainable Palm Oil (ISPO) since 2011. ISPO is designed to make sure that palm oil is cultivated in the Good Agricultural Practices (GAP) according to the sustainable environment, economy, and social principles.

“Now we are improving ISPO by preparing the new President’s Regulation. The old ISPO is not firmly supporting the small plantations,” he said.

The drafts of the new ISPO are in harmony process in the Ministry of Law and Human Rights and would be proposed to the President to be inaugurated. Within the new ISPO, the small plantations would really fulfill the standards of sustainability.

The government is also improving the governance of the plantation in the form of President’s Instruction No. 8 / 2018 about moratorium, the evaluation of palm oil plantation license and its postponement to new license.

The government has been running the Smallholders’ Replanting Program to increase the productivity for the independent smallholders.

“One thing to notice is the advantage the stalks of the trees from the replanting program. This could be the alternative to fulfill the wood needs nationally and internationally. This is the strategic way to reduce the emission and increase the carbon absorption,” he said.

If it is said about the environment issue, namely about deforestation, he believed that we are not cutting the wood to plant palm oil. “But the truth is we are planting palm oil to enliven the bold forests,” Darmin said.

The data synchronization about palm oil plantation is running still. He realized that the accuracy of data is very useful to optimize the potential about palm oil and could struggle for every discriminatory from other sides. (T2)


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