InfoSAWIT, JAKARTA - Indonesia, as the biggest palm oil producer in the world now seriously faces the challenges in sustainable production. European Union Deforestation Regulation (EUDR) becomes the main discussion. The government, stakeholders, and economist pay attention to it.

Central Bureau of Statistic (CBS) District of West Bangka mentioned that palm oil is the top rank in personal agricultural business of 10 commodities the most. But its sustainability becomes the topic in the global level particularly after EUDR was published.

As quoted from Kontan.co.id, in a focus group discussion (FGD) that Institute for Development of Economics and Finance (Indef) did, the representatives of Ministry of External Affairs Indonesian Republic, Emilia H Elisa told that EUDR is the internal regulation in the continent without involving producer countries including Indonesia. The Government of Indonesia claimed ‘Not Comply’ about the policy (regulation).

Chairman in Plantation Indonesian Palm Oil Association (IPOA), Azis Hidayat told that IPOA is with the government, rejecting EUDR. But Exective Director of Indef, Tauhid Ahmad remined that the regulation would deliver impacts to palm oil products from Indonesia in a very long time while the markets in Europe would be no more in short term.

Though rejecting EUDR, Indonesia needs to accelerate in anticipating the regulation. Emilia thought that it is important to get support in reinforcing Rencana Aksi Nasional Kelapa Sawit Berkelanjutan (RAN-KSB) as the way to promote palm oil as same as the social and environmental standards.

Executive Director of Yayasan Ekonomi Inklusif Biru Hijau Indonesia (YEIBHI), Sunny W.H. Reetz told that downstream industries would be the alternative to minimize the impacts from EUDR. Badan Perencanaan Pembangunan Nasional (Bappenas) put downstream industries in palm oil into Rencana Pembangunan Jangka Menengah Nasional (RPJMN). (T2)