JAKARTA – The Indonesian Palm Oil Association (GAPKI) has stated that its stance on the European Union Deforestation-free Regulation (EUDR) is in line with the Indonesian government’s policy. The EUDR is considered very discriminatory against Indonesia, especially its palm oil industry.

“GAPKI follows the government’s position. If the government rejects the EUDR, then GAPKI will also reject it,” GAPKI’s Plantation Division Head Azis Hidayat said during a public discussion organized by the Institute for Development of Economics and Finance (Indef) in Jakarta on Monday (11/12).

At the same occasion, Emilia H Elisa of the Indonesian foreign ministry’s American and European Intraregional and Interregional Cooperation Department said that Indonesian stance on the EUDR is “not comply”.

The EUDR, which will be fully implemented by the EU in 2025, targets agricultural and forestry products, including palm oil, cocoa, coffee, soybean, beef, woods, rubber, pulp and paper, and leather. It requires that the production of the products should not cause deforestation in the producing countries. Otherwise, the products will not be allowed to enter the EU market.

“The EUDR implementation will cause multidimensional impacts to Indonesia, especially to the smallholders who are likely to be isolated from the palm oil supply chain,” she said.

She added that all stakeholders should support the national action plan of sustainable palm oil (RAN-KSB) to tackle various problems that stand in the way of implementing the Indonesian Sustainable Palm Oil (ISPO) certification.

According to her, what makes the EUDR also problematic is the fact that the EU did not involve the producing countries, including Indonesia, in the process of designing the regulation. “So, Indonesian government’s position on the EUDR is “Not comply,” she said.

But Indef Executive Director Tauhid Ahmad said that it is understandable Indonesia rejects such discriminatory regulation. “It’s understandable, as EU has imposed various regulations which are detrimental to palm oil.  The EUDR policy will also affect other countries that produce palm oil,” he said.

According to him, in the short term, the EUDR will reduce Indonesia’s palm oil exports to Europe. “Considering such condition, the government needs to accelerate the improvement of the ISPO (Indonesian Sustainable Palm Oil) certification,” he said.

Concurring with Tauhid, Executive Director of Yayasan Ekonomi Inklusif Biru Hijau Indonesia, Sunny W.H. Reetz said that ISPO is equivalent with other sustainability certifications that have been recognized at the international market. “The more so, as ISPO has been revised. ISPO certification guarantees the standard of sustainability of palm oil industry in Indonesia,” he said. (*)

Source: sawitkita.id