Directorate – General of Plantation of Agriculture Ministry reported that, by 2018, there are approximately 14.03 million hectares (ha) palm oil plantations; and of which 5 million Ha is managed by smallholders. Meanwhile, Indonesia national production of palm oil stood at 37.8 million tonnes with average productivity of 3.6 million tonnes CPO per ha.
Nevertheless, the global market has set higher standards for palm oil. The increasing market demand of sustainability in the production of the CPO places the burden of proof on commodity producers, including farmers and other small-scale producers, without necessarily entailing price premiums on the demand side.
In response to the challenges in providing reliable information and data about sustainable palm oil, Institute Penelitian Inovasi Bumi (INOBU) and the European Forest Institute (EFI) kicked off the TERPERCAYA Study, “Tracking Sustainable Palm Oil and Defining Jurisdictional Sustainability at Scale,” on Monday, 23 April 2018. Thomas Shambres from The European Forest Institute said, ”The study is conducted with jurisdictional approaches and specifically involving the smallholder farmers. The Jurisdictional Approaches is a sustainable effort within an administrative border, e.g. Province, District/City and village, where the authority has the power to control and rule the allocation and resources within their jurisdiction through strong regulations. This study will come up with an innovation based on data, that can be used to fast-track palm oil from the plantation to the importer of CPO. This study aims show the Key Performance Indicators (KPI) that can be adopted and applied by District Authority. In the future, the District Authority can overcome the sustainability challenges with the benefits and incentives from the global market of CPO. This study will provide trustworthy (TERPERCAYA) data that are accessible not only to public, but also to the market.”
TERPERCAYA Study has started since March 2018 with deep interview to collect the information on challenges and opportunities in sustainable palm oil governance with government. This study will end on March 2019 with the sustainable palm oil market analysis scenario.
Responding to TERPERCAYA, The Deputy of Economic Coordinator Ministry Field of Coordination of Food and Agriculture, Musdalifah hopes that the study can help in promoting better governance for sustainable and traceable palm oil. She said, “Improving the traceability of palm oil will help the government to improve the CPO governance and bring an awareness to the public that it is vital to increase the national economic growth through the sustainable development.”
TERPERCAYA Study will be conducted at the jurisdictional level of Kabupaten or District Government, with a Seruyan District, Central Kalimantan Province, as the sample. INOBU has been assisting Seruyan District in palm oil governance since 2013. Seruyan District envision sustainable production of palm oil by 2019. Concrete steps have been started with mapping the smallholder, establishing working group on Jurisdiction based Certification and strategic environmental research. In particular, to accommodate smallholders to transition toward sustainability, Secretary of Seruyan District Government, Haryono said, “Since 2013, we have stopped issuing permission for new plantation and focused to empower community toward prosperity. We do see the better palm oil market opportunity with this certification. Therefore, we are targeting to fast forward the certification process to ensure the sustainability of sources and production process.”
Further information for TERPERCAYA Study please email to email@example.com