PALMOILMAGAZINE, JAKARTA – The policy series organized by sawitsetara.co attracted attention from various parties related to the palm oil industry in Indonesia. In the event, three key speakers from the Coordinating Ministry of Economy, BPDPKS, and CPOPC along with a number of other stakeholders gathered to discuss the impact of EU regulations on the Indonesian palm oil industry.
The European Union Deforestation-Free Regulation (EUDR) took center stage, due to its potential to have a significant impact on palm oil smallholders. One of the highlighting points is the gap between the regulation and the real conditions faced by palm oil Smallholders daily in Indonesia.
According to EU standards, Indonesia is considered a country with a high risk of deforestation in commodity production, including palm oil. However, this contradicts Indonesia’s efforts in implementing sustainable palm oil cultivation patterns, as proven through the Indonesian Sustainable Palm Oil (ISPO) certification.
Also Read:
- Unilever’s Annual Shareholders Meeting: Struggles with Sustainability Goals Amidst Activist Pressure
- SPKS Advocates for the Supervision of Palm Cooking Oil DMO to Protect the Welfare of Smallholders
- European Union’s Intensified SAF Regulation:Excludes Palm Oil and Soyoil
- SPKS Calls for Support from Elected President and Vice President for Sustainable Smallholders
- Insights into April 2024: Palm Oil Price Trends and Market Dynamics
- Shifting the Narrative on Palm Oil and Deforestation: Insights from ‘Not the End of the World’
“We do not want to be accused of not being sustainable, because we have fulfilled the requirements but why do we still have obstacles? Because we already have ISPO, which in ISPO has fulfilled EU requirements including the issue of allegations of deforestation,” said Expert Staff for Connectivity, Service Development and Natural Resources, Musdhalifah Machmud in a Focus Group Discussion (FGD) with the theme “Kupas Tuntas Regulasi Perkelapa Sawitan Indonesia,” organized by sawitsetara,” organized by sawitsetara.
Meanwhile, the Head of BPDPKS, emphasized the importance of ISPO certification to prove that palm oil in Indonesia is sustainable. Furthermore, he explained how important the oil palm commodity is for Indonesia. Because if palm oil in Indonesia stops, it is not only the industry that is affected but also Smallholders.
Based on the records of the Palm Oil Plantation Fund Management Agency (BPDPKS), there are around 2.4 million independent Smallholders involving 4.6 million workers. Therefore, if the palm oil commodity is hit by the EUDR regulation, there will be millions of Smallholders and workers who will be affected.
In response, Mauli said that besides pushing for ISPO certification, positive campaigns must also be more aggressively carried out by countries that have been discriminatory in the palm oil trade, such as the European Union countries.
“We have prepared a positive campaign strategy in the European Union. This is also to offset the opinion related to palm oil, which is still negative among the public and policy makers in Europe,” Mauli explained in his statement received by Palmoilmagazine.com, Saturday (4/5/2024).
The Secretary General of Apkasindo, Rino Afrino, highlighted the great contribution of smallholders in the Indonesian palm oil industry. With a large area of plantation controlled by independent smallholders, protection of their interests is important. Rino emphasized that oil palm smallholders face a number of challenges, including relatively low productivity and fluctuating palm oil prices.
The potential impact of the EUDR on Indonesian smallholders is a serious concern. From the burden of implementation costs to reduced income due to falling prices, smallholders are faced with major challenges in dealing with this regulation.
In the face of this situation, all interviewees saw the need for joint support from various parties, including the government, industry, and the wider community. Positive campaigns, diplomacy, and protection of the interests of smallholders are key to keeping Indonesia’s palm oil industry sustainable and competitive in the global market. (T2)
