JAKARTA – The implementation of traceability in the palm oil supply chain has come again under a spotlight. Dr. Tungkot Sipayung, Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), believes that the European Union’s (EU) demand for traceability is not entirely driven by global consumer needs, but it is more because of political and trade interests.
According to Tungkot, the facts on the ground show that Indonesian palm oil remains highly sought after by the global consumers, even though not all supply chains have complete traceability systems. In fact, the world is currently experiencing a palm oil supply shortage.
“Even without complete traceability, palm oil is still highly sought after by the global consumers. Currently, the world is experiencing a palm oil shortage. The only one demanding traceability the most is the European Union,” Tungkot told riauaktual.com on Monday (18/05/2026).
He explained that Indonesia’s main palm oil export destinations, such as China, India, and Africa, have so far not made traceability a primary requirement for trade.
“Other countries like China, India, Africa, and many of our export destinations don’t require that. So, it shouldn’t seem as if the entire world is demanding the same thing,” he said.
Tungkot believes that the European Union’s push for traceability policies is more appropriately viewed as part of a non-tariff barrier strategy to suppress the competitiveness of Indonesian palm oil in the global market.
He also questioned the consistency of the regulation’s application to other vegetable oil products entering Indonesia. He noted that imported cooking oils made from soybeans, corn, rapeseed, sunflower, and even olive oil sold in Indonesian supermarkets lack the open traceability system required for the Indonesian palm oil.
“If traceability is indeed the new rule for global trade, then imported products must also be treated the same. Just look at the soybean, corn, sunflower, and olive oils entering Indonesia. Is the traceability applied to them? None,” he said.
Beyond trade issues, Tungkot also highlighted national security aspects that he believes could potentially arise from EU-style traceability demands. One point of concern is the request for geolocation, or detailed coordinates of oil palm plantations.
He stated that, technologically, providing geolocation data is not difficult. However, the massive disclosure of plantation coordinate data to international parties is considered a significant risk to national strategic security.
“The ongoing war in the Middle East shows that once a target’s coordinates are known, they can easily be attacked using drones or missiles. If all our plantation coordinates are made available internationally, who can guarantee that the data won’t be used for other purposes?” he said.
However, Tungkot emphasized that PASPI does not deny the importance of information transparency and legality in national palm oil governance. He stated that improvements to the legality of the palm oil supply chain in Indonesia are indeed necessary.
However, he cautioned against turning the traceability policy into a trade policy instrument that would actually harm Indonesian oil palm growers.
“The legality of every link in the palm oil supply chain is important, we agree. And that is being addressed in Indonesia. But traceability must not be used as a non-tariff barrier to hinder trade, which ultimately puts pressure on palm oil producers and smallholders,” he concluded. (*)
Sawitindonesia.com. Traceability Uni Eropa Sarat Kepentingan Politik dan Perdagangan. https://sawitindonesia.com/traceability-uni-eropa-sarat-kepentingan-politik-dan-perdagangan/.
