Sustainable Palm OIL Could Solve the Trade Challenges

Sustainable Palm OIL Could Solve the Trade Challenges

InfoSAWIT, JAKARTA - These are the commitments of palm oil plantation companies to realize the transparent and traceable supply chain, free from deforestation, and respecting human rights. The sustainability should not be the slogan only but should be proved.

The palm oil producers in Indonesia are committed to produce sustainable palm oil and they keep increasing. But the number one export commodity from Indonesia from non-oil and gas sectors keeps facing critics about its sustainability. Both palm oil and its derivative products are always negatively accused from the environmental issues, namely the deforestation and the loss of conservation.

Some thought that the deforestation and the carbon release from area expansion in palm oil plantation are more dangerous than the usage as the fuel material. European Union within ‘Biofuel Act’ really forbids palm oil usage as the fuel material.

Some palm oil importer countries, such as, India block palm oil and its derivative products by making import tariff and trade barriers. These are direct serious issues to palm oil trade globally.

Knowing that palm oil has the strategic values, the government of Indonesia in cooperation with other stakeholders tries to fight for and explain every accusation. The government firmly does action about the trade barrier threat and explains to the importer countries in the form of bilateral cooperation (government to government/G to G).

Every stakeholder should support these to palm oil business nationally to solve the challenges in international trade in the future.

Palm oil is the main export and it is urgent to solve the challenges and trade barriers. The government and other stakeholders are in cooperation to make the wider perspectives in sustainable palm oil.

There were policies published by the government, such as, moratorium and forest conversion in 2011, the mandatory policy of Indonesian Sustainable Palm Oil (ISPO) in 2012, and the moratorium about new license in palm oil plantations nationally in 2018. (Writer: Edi Suhardi/ Palm oil Plantation Practitioner in Indonesia)

For more, please read InfoSAWIT, September 2019


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