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GAPKI: New Challenges Emerge in Palm Oil Partnerships



Doc. InfoSAWIT/Eddy Martono, Chairman of the Indonesian Palm Oil Association (GAPKI).
GAPKI: New Challenges Emerge in Palm Oil Partnerships

InfoSAWIT, JAKARTA - Eddy Martono, Chairman of the Indonesian Palm Oil Association (GAPKI), asserted that issues of conflict with indigenous communities, often associated with the palm oil industry, are now rarely seen among GAPKI members. He noted that problems are more likely to arise with local communities surrounding the plantations.

Martono cited the situation in Central Kalimantan, where palm oil companies have met and even exceeded their mandatory 20% plasma partnership obligation. "Some have provided up to 30%, even 50%. However, new demands continue to emerge from the next generation, even though the company's obligation has been legally fulfilled," he said during an online discussion attended by InfoSAWIT.

Another issue, according to Martono, is that many partnership lands are located in forest areas. If companies were to proceed, they would risk violating laws and facing criminal penalties. As a result, the government is now exploring other forms of partnership, such as productive activities beyond palm oil. Alternatives currently being tested include livestock farming and corn cultivation, given the national reliance on corn imports.

Some companies have attempted this model, setting up corn plantations and providing land, fertilizer, and assistance until harvest. However, implementation has not always been smooth, especially if the community land is designated as a forest area. "This remains a joint challenge, ensuring that partnership programs are still beneficial without violating regulations," Martono stated.

Martono also highlighted the new rule in the European Union Deforestation Regulation (EUDR) that questions new palm oil plantings after December 31, 2020. He believes this could become a new hurdle for international sustainability standards. "We must find a joint solution with the government so that Indonesia's palm oil exports are not disrupted," he concluded. (T2)


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