By: Dion Bisara, Jayanty Nada Shofa

December 13, 2022

Jakarta. The European Union Ambassador to Indonesia has expressed confidence that most palm oil companies in the country can meet the block’s stricter requirements against deforestation for plantation commodities, including palm oil.

“We are convinced that the large majority of companies, whether there are large firms or smallholder firms plantations, can meet our criteria,” EU Ambassador Vincent Piket told reporters on Monday.

Piket’s comments come a week after the EU approved legislation prohibiting companies from selling coffee, beef, soy, chocolate, rubber, and some palm oil derivatives associated with deforestation on the EU market.

The law will require companies to provide a due diligence statement showing that their supply chain does not contribute to forest destruction before selling goods to the EU, or they could face significant fines.

Many in Indonesia have expressed their concerns that the law would make it impossible for exporters to ship their commodities to the economic bloc, one of Indonesia’s largest palm oil market besides India, China and Pakistan.

“There is a lot of misunderstanding about this law saying that this will make trade impossible. It’s not the case. I am convinced
after speaking to companies that the this can be made to work,” Piket said.

The ambassador noted that Indonesia and the EU are looking in the same direction regarding promoting sustainable palm oil production.

A decade ago, government introduced the Indonesian Sustainable Palm Oil (ISPO) certification system, which include a ban on primary forest clearance ban.

Today, ISPO certified farms’ output reached nearly 38 million metric tons of palm oil per year, higher than the amount of palm oil Indonesia’s export annually, according to the Indonesian Palm Oil Associoation (GAPKI).

Piket said to make the ISPO system work, he emphasized the need for investment in skills development, particularly for smallholder farmers. The ambassador also mentioned the importance of improving production methods in the palm oil industry.

Source: https://jakartaglobe.id/business/most-indonesian-palm-oil-companies-can-meet-eu-criteria-ambassador