PALMOILMAGAZINE, EAST KALIMANTAN – The European Union Deforestation Regulation (EUDR) came into effect in the European Union (EU), as part of their efforts to reduce global deforestation rates. The EUDR has a major impact on the palm oil sector, especially for independent smallholders who cultivate oil palm after December 2020. Unlike independent smallholders who have obtained certifications such as Indonesian Sustainable Palm Oil (ISPO) or Roundtable on Sustainable Palm Oil (RSPO) as proof of their commitment to protecting forests and the environment, EUDR has the potential to stop the export of palm oil products linked to deforestation.
It is important to understand that regulations such as EUDR not only have an impact on environmental aspects, but also on social and economic dimensions. As a policy, EUDR affects not only the environment, but also people’s behavior, threats to farmers’ livelihoods, and even deepens conflicts in supply chains that end up in EU countries.
When we talk about palm oil, we cannot separate this natural resource from other aspects of life. Natural resources such as tropical forests cannot be isolated from the operation of other territorial capitals, such as human capital, private capital, and social capital. The palm oil commodity, which is a source of livelihood for many villagers, is one such example. Data reveals that independent smallholders contribute up to 41% of palm oil production at the national level. Moreover, around 13 million people, including farming families, are expected to be affected by this new regulation.
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I believe that the best solution is to involve farmers in the decision-making process and jointly find ways to safeguard the environment while protecting their livelihoods. Close cooperation between the government, stakeholders and independent smallholders who strive to implement sustainable agricultural practices is key to achieving balanced sustainability goals. Such a collaborative approach ensures that policy impacts are part of a sustainable solution to this complex problem.
Independent smallholders who seek to implement sustainable agricultural practices fully recognize the importance of environmental sustainability, and they want to play a role in this effort. Farmers hope that regulations like the EUDR can take into account their role in this industry and find solutions that not only protect the environment but also provide livelihood enhancing impacts.
Let me take you to the beauty of East Kalimantan’s tropical forests, in three sub-districts that may not be well known to the outside world: Kembang Janggut, Tabang, and Kenohan. This is where the real story happens, reflecting how a commodity like oil palm can affect the daily lives of thousands of independent smallholders in Kutai Kartanegara District. The area of oil palm plantations in this region totals around 15,000 hectares, and around 58% of this land is within the forest area, creating a complicated challenge given the strict regulations from the EU regarding palm oil products.
