InfoSAWIT, JAKARTA – The European Union Deforestation Regulation (EUDR) policy has become a primary focus in managing Indonesia's palm oil sector, particularly in ensuring sustainability and inclusive involvement of local farmers. This policy mandates that seven commodities, including palm oil, must be free from deforestation and meet human rights standards.
Andi Muttaqien, Executive Director of Satya Bumi, explained that the EUDR regulates the role of operators to ensure compliance with environmental and social standards for imports from outside the European Union. Meanwhile, traders are only allowed to trade products within the EU area. "This regulation underscores the importance of traceability from source to final production process," Andi stated, as quoted in the November 2024 edition of InfoSAWIT Magazine.
As one of the main suppliers of palm oil, Indonesia faces significant challenges in meeting EUDR standards. However, Andi believes this policy also presents opportunities for Indonesia to strengthen a more transparent and environmentally friendly palm oil supply chain. "The involvement of independent farmers and indigenous communities is crucial to ensure that export access to the European market remains open," he added.
On one hand, the EUDR regulation encourages the Indonesian palm oil industry to be more sustainability-oriented. On the other hand, adapting to this policy requires substantial efforts, including reforms in supply chain management.
According to Andi, transparency and traceability are key elements that need immediate enhancement. By meeting these standards, Indonesia can not only maintain access to the EU market but also demonstrate its commitment to environmental sustainability and the welfare of farmers.
"The moratorium on palm oil in Indonesia could be a relevant strategic step. Besides helping to halt deforestation, this policy could serve as a foundation for more inclusive and sustainable palm oil management reforms," Andi stated.
Independent farmers and indigenous communities in Indonesia face significant challenges in adapting to international standards like the EUDR. Therefore, support from the government and the private sector is essential to ensure they can meet these requirements.
"This policy is not just about avoiding deforestation, but also about how the process fairly involves local farmers. With good collaboration, Indonesia can leverage this opportunity to create a more competitive palm oil industry on a global scale," Andi concluded. (T2)
