Time for countries to improve governance

Two of the world's largest palm oil-producing countries, Indonesia and Malaysia discussed the newly released European Union anti-deforestation regulation (EUDR). It is alleged that this regulation will have a significant negative impact on global palm oil exports and on other developing countries . civil society reacts otherwise.

 Vincent Piket, Ambassador of the European Union to Indonesia, said EUDR is not a form of discrimination against certain commodities. This regulation also applies to commodities from within the European Union. The EUDR is one way for the European Union to contribute to controlling the climate crisis. One of them , reducing deforestation from products that enter the European Union . 

 Achmad Surambo, Executive Director of Sawit Watch, believes that  constructive dialogue is necessary between the European Union and producing countries, especially Indonesia as the world's number one palm oil producer.  This is in order to achieve sustainable palm oil as encouraged by both parties.

 Andre Barahmin, Kaoem Telapak's Senior Campaigner, said that  the upheaval in rejection of the palm oil sector indirectly indicates that there is a problem in that sector . Moreover, there was no similar response shown by other commodities which are also regulated in the EUDR.

Two of the world 's largest palm oil producing countries , which are members of the Council of Palm Oil Producing Countries (CPOC) held a bilateral ministerial meeting in Jakarta , 9 February.

Present at the meeting were Malaysia's Minister of Agriculture and Commodities Dato Sri Fadillah Yusof and Indonesia's Coordinating Minister for the Economy, Airlangga Hartanto. The meeting was called to strengthen the palm oil industry and overcome discrimination against this commodity, specifically because it responds to the European Union's anti-deforestation regulations (EU Deforestation Regulation/EUDR).

In a release to the media, the two ministers expressed serious concern about this new EU regulation. It is alleged that the EUDR will have a significant negative impact on global palm oil exports and other developing countries.

It is believed that this anti-deforestation product regulation will increase the export price of palm oil and make this commodity less competitive with other vegetable oils from within the European Union. The two ministers regretted that there was no consultation with trading partners.

Indonesia and Malaysia are planning a visit to the European Union to discuss the unintended consequences of the EUDR.

One of them is the exclusion of smallholders in the palm oil supply chain. They will communicate to determine the best middle ground for palm oil consuming and producing countries.

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Not discrimination

Previously, the European Union Ambassador to Indonesia, Vincent Piket, in a Media Dialogue entitled 'The new EU Regulation on Deforestation: What is and What Does It Mean for Indonesia' in Jakarta, recently, said that EUDR is not a form of discrimination against commodities. certain. This regulation also applies to commodities from within the European Union.

"This will create healthy competition for every commodity circulating on the European Union market," he said.

After all, he said, the EUDR is a way for the European Union to contribute to controlling the climate crisis. One of them is reducing deforestation from products that enter the European Union.

The European Union cites calculations by the Intergovernmental Panel on Climate Change (IPCC) which state that deforestation and forest degradation contribute 11% of greenhouse gas emissions. More than that, 90% of deforestation is triggered by the expansion of agricultural land.

Therefore, it is important for the EUDR to contain deforestation caused by the European Union's consumption of agricultural commodities in producing countries.

European Union notes, this regulation will regulate the import of products worth € 85 billion and cut 32 million tons of carbon per year produced from that product.

He appealed to producing countries not to be resistant in the first place. Rather, it sees a further goal from the EUDR to increase each country's anti-deforestation standards.

Henriette Faergemann, First Counselor on Environment, Climate Action and ICT Delegation of the European Union to Indonesia, said the EUDR was an instrument that could encourage the European Union and Indonesia to create sustainable supply chains.

In addition, the European Union and Indonesia can act against deforestation and forest degradation to realize sustainable development, the Paris Agreement and other international commitments," he said.

The European Union is sure that Indonesia will not have any problems complying with this regulation. This is because there has been a similar due diligence mechanism for wood products in the form of a FLEGT license which has been running for quite a long time.

"We will cooperate with other consuming countries to see what can be improved from this regulation," said Hernriette.

Opportunity for improvement

Achmad Surambo, Executive Director of Sawit Watch, thinks that constructive dialogue is necessary between the European Union and producing countries, especially Indonesia as the world's number one producer of palm oil.

This, he said, is in order to achieve sustainable palm oil as encouraged by both parties.

“Both producers and consumers actually need each other to promote sustainable palm oil. There has been no constructive dialogue," said Rambo.

He deplored the resistance that often arises from the Government of Indonesia and oil palm entrepreneurs against the EUDR. In fact, he said, the spirit of this regulation is clear to encourage Indonesian palm oil to be clean and sustainable in the European Union market.

The attitude of the government and palm oil entrepreneurs, said Rambo, had an indirect impact on farmers. Smallholders in the field are excited about increasing their yield capacity and improving their management.

"Farmers are excited. They want improved governance, getting decent prices, good agricultural practices , and fertilizers on time. This is the key to support sustainability ," he said.

He also considered EUDR to be the right momentum to improve palm oil governance as had been raised in the Government of Indonesia's palm oil moratorium policy.

With no follow-up to Presidential Instruction Regulation No. 8/2018 concerning Postponement and Evaluation of Palm Oil Plantation Permits and Increasing Palm Oil Plantation Productivity.

"This is an opportunity to improve. I agree with the Ambassador of the European Union who said this is an opportunity to increase anti-deforestation standards."

Andre Barahamin, Kaoem Telapak 's Senior Campaigner , said that the upheaval in rejection of the palm oil sector indirectly indicates that there is a problem in that sector. Moreover, there was no similar response shown by other commodities which are also regulated in the EUDR.

Apart from palm oil, other commodities regulated in the EUDR include soybeans, timber, beef, cocoa, rubber and coffee and their derivative products. Because basically they are aware that their sustainability standards are still weak.”

According to him, negative comments about the EUDR often come from palm oil actors who are reluctant to acknowledge the need for strengthening and reform to improve the quality and standards of the palm oil sector. While in the timber sector there is already experience and understanding of anti-deforestation regulations so that they are more calm in responding to EUDR.

“The palm oil sector is stubborn because it doesn't want to admit it is lacking. That still needs a lot of strengthening.”

Syahrul Fitra, Senior Forest Campaigner at Greenpeace Southeast Asia, said that the EUDR should not frighten the palm oil sector. He highlighted the implementation of the EU cut off date on 31 December 2020.

This date, he said, is considered safe for the products of deforestation.

According to Syahrul, the area of ​​oil palm plantations is around 16.32 million hectares, it should be safe enough following the export provisions in the EUDR. It's another matter if there are plans to convert forests in the future for the expansion of oil palm plantations.