PALMOILMAGAZINE, JAKARTA – According to Achmad Maulizal Sutawijaya, the Head of the Corporate Division of the Palm Oil Plantation Fund Management Agency (PFMA), the palm oil sector in Indonesia, which includes 2.4 million independent smallholders and 16 million workers, has the potential to significantly contribute to the gross domestic product (GDP) growth in the plantation sector. It is projected that the GDP in the third quarter of 2023 could experience a positive increase of 5.72%. In 2022, the total palm oil exports reached approximately 34.67 million tons, with a value of around Rp 34.5 trillion.
“Export levy successfully encouraged downstream program with decreasing CPO export composition. Besides, the numbers of levy that PFMA managed in 2022 reached Rp 800 billion or increased 123,31%,” he said in Focus Group Discussion (FGD) SAWIT BERKELANJUTAN VOL. 14, with the theme “Mengintegrasikan Industri Hulu Hingga Hilir Sawit Berkelanjutan”, that InfoSAWIT conducted with the supports from Palm Oil Plantation Fund Management Agency (PFMA), Wednesday (7/6/2023) in Jakarta.
But what about the challenges in palm oil sector, such as, European Union Deforestation Regulations (EUDR)? What did PFMA do to face the challenge? Mauli thought, palm oil producer countries still have bargaining position because European Union could not fulfill their vegetable oil needs in the continent but by having imports.
Prior the increasing demands on biodiesel fuel in European Union were the chance for palm oil to penetrate. “But the publication of EUDR in 2023, palm oil biodiesel producers in Indonesia should escalate sustainability aspects in their supply chain so that the countries in the continent would not decrease their demands on biodiesel material,” Mauli said.
That is why to support the industries, there would be strategic things to do in European Union, such as, legal actions to solve discrimination issue about palm oil trade from Indonesia.
The second, bilateral relationship as persuasive way among the countries to muffle discrimination trend on palm oil in European countries. The third, certification to implement sustainable certification that many countries acknowledge to penetrate the exports. “The fourth, media coverage by taking advantages on trusted communication channel in three (3) countries (German, French, and Belgium),” Mauli said. (T2)
