EU Anti-Deforestation Law: Agriculture Ministry boosts ISPO certification

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Bisnis Indonesia - UU Anti-Deforestasi UE: Kementan pacu sertifikasi ISPO

26 May 2023

By: Indra Gunawan

Jakarta - The Agriculture Ministry is offering accelerated Indonesia Sustainable Palm Oil certification as a requirement to comply with the new anti-deforestation regulation issued by the European Union. 

Director of Processing and Marketing of Plantation Products (PPHP) of the Agriculture Ministry’s Directorate General of Plantations Prayudi Syamsuri explained that the Indonesia Sustainable Palm Oil (ISPO) certification as an attribute for palm oil trade globally must be intensified again. 

According to him, ISPO is a legal requirement for farmers which can be a solution to comply with the European Union’s (EU) anti-deforestation regulation for oil palm products. 

Thus far, the EU, as one of the importers of crude palm oil (CPO) from Indonesia, has imposed various strict regulations related to deforestation. 

Therefore, he suggested that concrete measures should be taken so that Indonesian CPO is not subject to this regulation. 

Prayudi mentioned that there were four tasks that must be carried out to comply with the EU’s new regulation that will be effective this month.

First, settling the legality of farmers must be pushed. Second, farmers must be supported in the ISPO certification process.

Third, conflicts in oil palm plantation licensing must be resolved. And fourth, the recognition of the rights of the indigenous people must be accelerated.

Until now, Indonesia has been facing challenges in fulfilling the legal requirements in smallholder oil palm plantations. From the total of 6.7 million hectares of smallholder oil palm plantations in 2022, he added that only 32 ISPO certificates have been issued for the farmers. “Meanwhile, the target to complete the ISPO certifications for farmers is in 2025,” he said during a discussion themed “ISPO Certification for Oil Palm Smallholders” on Thursday (25/5).

He affirmed that one of the challenges in the legality of smallholder oil palm lands was the indication of oil palm permits and oil palm coverage in forest areas.

Besides that, Prayudi affirmed that there were many conflicts and tenurial claims from the indigenous people and the locals regarding oil palm plantations.

During the occasion, Solidaridad Head of Programme Operation Billy M. Hasbi said that there were five factors that hamper the ISPO certification process for independent farmers. 

First, the limited access to information regarding ISPO for independent oil palm farmers. Second, the legality of the lands of independent oil palm farmers that is not yet appropriate. Third, the differences in the interpretation of the certification requirements, which include Cultivation Registration Certificate (STDB), Certified Seeds, Statement of Environmental Management Undertaking (SPPL), and others.

“The fourth factor is the complexity of the ISPO certification process, and the last factor is related to the incentives for independent farmers after obtaining the ISPO certification,” he said.

According to him, Solidaridad, through the Reclaim Sustainability Palm Oil project, is cooperating with the Indonesian Plantation Association (GPPI) and the Directorate General of Plantations to realise the ISPO certification programme for independent oil palm farmers the through Resource Centre Oil Palm Smallholder (ReCops).

Hasbi reckoned that ReCops was a centre for resources or a platform that provides information, assistance, and support particularly for small-scale oil palm farmers.

“The purpose is to empower and support small-scale oil palm farmers to achieve sustainable and responsible practices. [Besides that, it will also] improve their livelihood and promote social and environmental sustainability in the palm oil industry,” he stated.

Not to panic

Meanwhile, the Head of Indonesian Oil Palm Farmers Association (Apkasindo) Gulat Manurung reckoned that Indonesia did not need to panic over the EU’s implementation of the European Union Deforestation-Free Regulation (EUDR) or the Anti-Deforestation Law.

Until now, Indonesia has been the largest palm oil producer and the largest CPO consumer in the world.

Last year, Indonesia’s CPO production reached 46.7 million tonnes, of which 20.97 million tonnes or 44.8% were consumed domestically and 25.73 million tonnes were exported to 242 countries.

“Based on this data, Indonesia must be confident in facing the threat from the European Union by using the EUDR,” Gulat said to Bisnis on Wednesday (24/5).

Last year, he said, CPO import of the European Union reached 2.05 million tonnes with around 2 million-3 million tonnes per year in the last 5 years.

In addition, he said that the EUDR was similar to the Roundtable on Sustainable Palm Oil (RSPO) and Indonesia Sustainable Palm Oil (ISPO) as these regulations have almost identical construct, even though there is an additional cost to obtain the EUDR certification.

Indonesia’s CPO production that is RSPO-certified reached 1.14 million hectares with 5.76 million tonnes of CPO produced. Meanwhile, CPO production that has been ISPO-certified reached 5.78 million hectares with 22 million tonnes produced.

“Considering the import of the European Union that only reaches 2-3 million tonnes, the answer is simple. The European Union in particular can be supplied with CPO that has RSPO or ISPO certifications from the IPOA (Indonesian Palm Oil Association) or DMSI (Indonesian Palm Oil Council). It is clear,” he explained.

Indonesia currently needs a special strategy as the EU’s action is merely trade politics.

According to him, the main strategy that can be implemented is increasing domestic CPO consumption from 44.8% of the total CPO production that reached 47 million tonnes in 2022. Ideally, domestic consumption needs to be around 60%-75% of the total production.

As of 16 May 2023, the EU has implemented the EUDR that regulates deforestation-free commodity trade.

In the new policy, exporters can sell their products if they have passed a due diligence to ensure that the products do not come from lands that are experiencing degradation or deforestation.