GAPKI Takes Advantage of EUDR Delay to Prepare Smallholders

(Indonesian Palm Oil Association (GAPKI)) The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono has stated that they will take advantage of the delayed implementation of European Union Deforestation-Free Regulations (EUDR) to improve the ecosystem of palm oil in Indonesia.

Addressing the 39th Trade Expo Indonesia (TEI) at ICE BSD, Tangerang, Banten, Eddy Martono said on Thursday that the delay of the EUDR implementation will give time for the palm oil industries, especially smallholders, to make some needed adjustments to comply with the EUDR. “During that one year, we’ll try to improve the palm oil industries so that all players can comply with the international requirements,” said Eddy.

One of the problems facing the palm oil industries are concerned with the smallholders’ plantations, which unlike palm plantations are not yet subject to the government’s policy of moratorium as stipulated by the presidential instruction (Inpres) No. 5/2019 on moratorium of new palm plantation licenses and improvement of governance of primary forests and peat lands.

Eddy said that the government, through national dashboard, is currently collecting data on the smallholders’ plantations, including their data on geolocation. “The government is now collecting data on smallholders’ plantations and wants to ensure that they are all well registered and managed,” he said.

But the difference between Indonesia and the European Commission on geolocation access has become one of the challenges. Indonesia does not allow the geolocation data given thoroughly to foreign sides. Eddy proposed that it should be only the geolocations of cultivated plantation areas that can be shared to protect national interest.

Besides geolocation, another problem is the fact that European Union (EU) does not acknowledge the certifications of Indonesian Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO), and Roundtable on Sustainable Palm Oil (RSPO).

Eddy hopes that concerning this certification there should be a mutually beneficial meeting point between the two sides. “We’ve determined ISPO as mandatory for all industry players, and we hope the EU can accept the certifications. There should be mutual understanding and respect for the regulations of respective countries,” said Eddy.

The delay of EUDR implementation will give additional one year until December 2025 for palm plantation companies and one and half year until June 2026 for smallholders to prepare themselves for compliance. The EU decided to delay the EUDR after considering inputs from various sides, including from producing countries, such as Indonesia, Brazil, and Malaysia, which stated that the EUDR implementation will bring negative impacts to the smallholders.

Despite initially appreciated as an important step to tackle the global climate change , the EUDR had drawn strong criticisms as it is called as protectionist and highly potential to disrupt global supply chain and raise prices in EU.

The European Commission said that the delay is needed to ensure that it will be later well implemented for the benefits of all stakeholders. But the proposed delay will still need approval from the European Parliament and the European Council. (*) READ MORE