Behind Its Criticism, EU Greatly Relies on Palm Oil

JAKARTA – The Palm Oil Agribusiness Strategic Policy Institute’s (PASPI) Executive Director Tungkot Sipayung emphasizes the significance of cultivation approach to create a balance between in situ and ex situ conservation as part of efforts to preserve Indonesia’s biodiversity.

“Cultivation is not only a conservation solution, but it also stands as a proven successful model in the palm oil industry,” Tungkot Sipayung said during the launching ceremony of the book titled “Nature Conservation in Indonesia and the introduction of the Panca Palma” authored by Petrus Gunarso in Sagulicius, Kelapa Gading, North Jakarta on Thursday (5/22/2025).

“In the past, only four palms were planted in Bogor Botanical Gardens. Then later from there, Indonesia managed to produce more than 70 superior varieties as a basis for Indonesia to develop itself as the world’s largest producer of palm oil,” said Tungkot.

He said the step taken by Petrus Gunarso to introduce five types of tropical palms—oil palm, aren palm, sago, coconut, and areca nut—is an important breakthrough in building a sustainable future based on local germplasm.

“Indonesia is indeed the largest exporter of betel nut. But it still relies on wild forest products, not from cultivation. This is a big homework,” he added.

According to Tungkot, palm oil has an amazing multifunctionality, which is rarely noticed by the public. Environmentally speaking, oil palm does not only absorb carbon dioxide effectively, but also creates millions of biopores in the soil that store water and organic matter, and improve soil quality naturally.

“Due to its very high productivity, oil palm trees need much less land in producing the same amount of oil as compared to other vegetable oil crops, such as soybeans. Certainly, without the oil palm, the world will see much more massive deforestation as other vegetable oils require much more land areas in producing the same amount of vegetable oil,” he said.

Actually, Tungkot said, although the European Union (EU) often criticizes the palm oil, all of its member countries really need palm oil and they have been  enjoying the great economic benefits from the palm oil products.

“They use it to produce various kinds of products, add value, and enjoy its benefits every year. So, actually Indonesia shares its economic benefits with the world,” he said.

In addition to that, the global palm oil industries create job opportunities, not only in Indonesia, but also in other countries, including India, China, and European countries. “So, the palm oil is the vegetable oil for the world. We help the world in providing vegetable oil, and that is a fact.” (*)