JAKARTA - The national palm oil industry is facing great pressure from the implementation of the European Union Deforestation Regulation (EUDR) which requires the implementation of a traceability system (traceability) of products to the origin of the garden.
This rule is considered a key factor in maintaining export access to global markets, especially the European Union.
Windrawan Inantha, Strategic Advisor for CECT Sustainability at Trisakti University, said that the European Union is now not only a market, but also a determinant of the direction of global palm oil industry governance.
"Palm oil traceability today is more born from market access pressure and global governance than from domestic consumer encouragement," he said in a written statement to the media, Monday, April 20.
According to him, the biggest challenge comes from the structure of the Indonesian palm oil industry, which is about 42 percent of the land managed by small farmers.
This group is considered the most vulnerable point in the supply chain due to limited land legality, technical capacity, and access to financing.
The traceability system that requires precise geolocation and digitization is considered easier to implement by large corporations than self-help farmers.
Windrawan assessed that the role of the Plantation Fund Management Agency (BPDP) is crucial as a catalyst for transformation. He encouraged that the readiness of traceability be made the main requirement in the distribution of programs such as rejuvenation and assistance for infrastructure facilities.
In addition, BPDP is also encouraged to strengthen the data infrastructure of farmers, ranging from mapping gardens to the digitization of farmer group administration.
"As long as the fruit from the traceable garden is valued the same as the untraceable one, the change will be slow," he said.
On the other hand, the strengthening of digital systems such as the development of WebGIS-based ISPO is considered a positive step, but it needs to be integrated with funding and field implementation to be effective.
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