Private Sector Supports Sustainable Palm Oil

JANUARY 20,2021

Despite the seemingly never-ending spread of the Covid-19 pandemic which causes negative impacts on almost all sectors of the socio-economic activities in Indonesia, the year 2020 has become an important milestone for the implementation of Presidential Instruction 6/2019 on the National Action Plan for Sustainable Oil Palm Plantations 2019 - 2024 (NAP SPO).

During November 2020, Government of Indonesia, led by Coordinating Ministry of Economy has successfully done a socialization of NAP SPO to representatives of the Indonesian Palm Oil Association (GAPKI) from 14 provincial branches facilitated by SPOI UNDP. GAPKI involvement is crucial, given their important role for the NAP SPO implementation on the ground.

Business actors and the community are one of the main stakeholders, so they need to be optimally embraced to achieve the road map for Indonesian palm oil governance as stated in the NAP SPO. This message was conveyed by Dr. Musdhalifah Machmud, Deputy Minister for Food and Agribusiness Coordination, of the Coordinating Ministry for Economic Affairs who is also the Chairperson of the National Implementation Team for the NAP SPO.

The socialization process to GAPKI representatives was also monitored by the Ministry of Agriculture, represented by Dedi Junaedi, Director of Estate Crops Products Processing and Marketing of at the Directorate General of Plantation who is also the Chairperson of the NAP SPO Secretariat Team. In his presentation, the private sector can contribute to all components of the NAP SPO.

This socialization received quite positive responses and support from the majority of GAPKI representatives since the Presidential Instruction was expected to act as a catalyst to solve problems in the palm oil sector. GAPKI also hopes that NAP SPO provides a solution on the clarity of land status issue, especially regarding to oil palm plantations indicated in forest areas.

In addition to regulatory issues, GAPKI also highlighted field constraints about credit extension to smallholders. Responding this, Moch. Edy Yusuf, Assistant Deputy of Plantation Agribusiness Development, Coordinating Ministry for Economic Affairs, stated that any problems hindering the distribution of smallholders’ credit that are unable to be resolved at the technical level, then it can be escalated to the Coordinating Ministry for Economic Affairs.

At the end of the socialization, Dr. Rusman Heriawan, advisor of the NAP SPO Forum concluded by stating that all parties must collaborate to support the implementation of the NAP SPO, starting from the government through policy and regulatory instruments, as well as business actors and NGOs. The implementation of the NAP SPO Presidential Instruction urgently requires a synergy from all stakeholders and that NAP SPO should be a necessity, not just a mandatory since the palm oil sustainability is a shared responsibility.

Implementation of Presidential Instruction No. 6/2019 provides an enabling condition for the acceleration of the implementation of ISPO certification which is in line with GAPKI's commitment to achieve 100% ISPO for its members.