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Indonesian Palm Oil Raises Competition in the World’s Edible Oil Industry

By 23 February 2017October 11th, 2021Industry News3 min read

Minyak Sawit Indonesia Ciptakan Persaingan Minyak Nabati Dunia 01

satunusantaranews – Jakarta. Indonesia and Malaysia are the two producing countries that could potentially be competitors because they have very large and fertile tropical lands that are very suitable for raising coconuts and palm oils which are high quality edible oil producing plants.

It raises alarm for the US and Europe, as the producing countries of soybean, canola, and sunflower oils, that the palm oil will seize their markets in supplying the needs of bio diesel in the world.

The initial step of the US and Europe in anticipating the competition from Indonesia and Malaysia is by issuing a Warning Letter from the Environmental Protection Agency (EPA) which says that the Indonesian palm oil emission is less than 20% of fossil fuels. Thus, the export of CPO in the world is threatened. The US and European authorities also cooperate with International NGOs in spreading black campaign about the environmental damage caused by palm oil plantations.

The NGOs’ attack against palm oil supported by the producing countries of soybean, canola, and sunflower oils is interrupting Indonesian palm oil industries. The NGOs demand the companies and government to stop the deforestation and revoke the license of the palm oil plantations that damage the environment.

Coordinating Minister of Economic Affairs, Darmin Nasution, said, “Moratorium on the palm oil license is quite complex because it will have major impact on the society and company. What factor should be considered if the moratorium is conducted? How the law will be enforced and what do we have to do?” The impact of the moratorium has not been able to be perceived because of there have not been any legal certainty on the palm oil plantations, including smallholders that are already located in the forest areas.

The government wants to increase the palm oil productivity as well as encourage the development of downstream industry and improve the standard of Indonesia Sustainable Palm Oil (ISPO).

Considering the role of the palm oil industry as a major contributor of Indonesian foreign exchange, the government will keep developing palm oil plantations and will make the palm oil entrepreneurs and investors as partners in the palm oil industry while maintaining the law to preserve the environment.

In accordance with the President’s instruction in addressing the black campaign raised by NGOs, Sugeng Marsudiarto as the Co-Director of Forestry & Plantation said, “The government is trying to engage local NGOs to be able to understand the land clearing activities carried out by palm oil companies as long as they are in accordance with the relevant law in Indonesia.”

Related to the campaign carried out by the international NGOs about palm oil damaging the Indonesian environment, Hamdhani, S.IP from Commission IV of the Parliament said, ” The most important thing is that the operations have been in accordance to the Law No. 39 of 2014 on Plantations, Mining, and other, where it focuses on land clearing provisions in accordance with the Plantation Areas (APL) specifically for palm oil plantations. I think we just have to ignore what the international NGOs say as long as the investors adhere to the rules established by the Indonesian Government.” (Ray)

Source: http://satunusantaranews.com/