JAKARTA – The economic coordinating ministry’s Deputy In Charge of Foods and Agribusiness Coordination, Musdhalifah Machmud said the government is now preparing a number of strategies to deal with the implementation of the European Union Deforestation-Free Regulation (EUDR).
She said that the strategies are also designed to counter the accusations that Indonesian palm oil industry is not sustainable. “Currently, we’re drafting strategies to counter the accusations that our palm oil products are not sustainable,” Musdhalifah said when addressing virtually the event of Indonesian Palm Oil Research Week (PERISAI) 2023 in Surabaya, East Java, on Wednesday, 25 October 2023.
For the first strategy, the government is now working on the revision of the presidential regulation (Perpres) No.44/2020 on the certification system of Indonesia’s sustainable oil palm plantations. The Perpres stipulates that palm oil industry players are obliged to get certification of Indonesian Sustainable Palm Oil (ISPO).
“The scope ruled in the Perpres will be expanded to accommodate all aspects of sustainability in the palm oil industry up to downstream industries,” said Musdhalifah.
The second strategy is concerned with the establishment of a clearing house as a forum for all stakeholders to discuss various issues on how to realize a sustainable palm oil industry in Indonesia.
The clearing house can also function to settle the problems of procurement by involving stakeholders and other related groups with the aim to find comprehensive solutions.
Musdhalifah pointed out that previously the government had set up a joint task force to tackle various issues caused by the implementation of EUDR in Indonesia and Malaysia.
She said that Indonesian palm oil industry has been continually growing. Last year, Indonesia produced a total of 52 million tons of crude palm oil (CPO) from a total plantation acreage of 16.8 million hectares with a total employment of 16.2 million workers in the industry. It is also the world’s largest exporter of palm oil with a global market share of 35 percent at the global market of vegetable oils.
Of the total CPO production, 40 percent is absorbed at domestic market, while the other 60 percent is exported to various countries. Indonesia’s palm oil exports account for around 10.20 percent to its total exports with a total value of US$29.66 billion, making the palm oil industry as the vital sector for Indonesian economy.
But despite the palm oil success, challenges have been continually emerging. The challenges include the issue of sustainability, and the implementation of EUDR. (*)
Source: sawitku.id / infosawit.com
