PALMOILMAGAZINE, MEDAN – In a highly anticipated session at the International Conference of Rumah Sawit Indonesia (RSI) on Wednesday (February 19, 2025), Indonesia’s Deputy Minister of Foreign Affairs, Arief Havas Oegroseno, announced a major initiative by Indonesia and Malaysia to establish global sustainability standards for palm oil. This effort, involving the Food and Agriculture Organization (FAO), aims to provide an alternative to the sustainability standards currently dominated by the European Union (EU).
“We have engaged in discussions with FAO to conduct a study on developing sustainability standards for both palm oil and coconut oil,” Havas stated in an official release received by Palmoilmagazine.com on Wednesday (February 19, 2025). According to him, a globally recognized sustainability standard would not only address international pressures but also demonstrate that palm oil-producing countries uphold widely accepted environmental practices.
In recent years, the palm oil industry has faced increasing regulatory challenges from the EU, particularly with the introduction of the European Union Deforestation Regulation (EUDR). Havas emphasized that a sustainability standard developed in collaboration with FAO would offer a more inclusive global framework, providing an alternative to EU regulations.
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“We will be able to present to the EU that a globally recognized sustainability standard at the FAO level already exists. This means that sustainability standards are not just dictated by the EU but are also established at the global level,” he asserted.
Havas further mentioned that he had urged the Council of Palm Oil Producing Countries (CPOPC) to actively participate in the development of this standard, ensuring stronger international acceptance.
Additionally, he addressed the reasons behind the EU’s delay in implementing the EUDR, highlighting five key factors: regulatory complexity, political pressure in Europe, operational and technological challenges, economic considerations, and inconsistencies with other EU regulations.
“The EU has never publicly disclosed the reasons for the delay. However, based on my discussions with several EU representatives, these five factors have contributed to the postponement,” he explained.
One particular issue raised was the reliability of the satellite technology used by the EU to assess deforestation. Havas revealed that EU satellites had mistakenly identified the runway of Soekarno-Hatta International Airport as deforested land and misclassified banana plantations as tropical forests. “This clearly presents enforcement and compliance challenges,” he noted.
The collaboration between Indonesia, Malaysia, and FAO sends a strong signal that palm oil-producing nations are not passively accepting global regulatory pressures. By developing a sustainability standard that is more inclusive and based on scientific research, the palm oil industry aims to continue its growth while adhering to globally recognized sustainability principles. (P2)
