Anti-Deforestation Casts Shadow on Palm Indonesian Oil Export

Despite the growing volume of Indonesian palm oil exports, the price of this high-quality commodity has suffered a decline following the enactment of the European Union's anti-deforestation legislation.

Indra Gunawan & Hendra Wibawa

15 Jun 2023 - 19.58
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Anti-Deforestation Casts Shadow on Palm Indonesian Oil Export

Oil Palm Farmers, members of the Indonesian Palm Oil Growers Association (Apkasindo), held a demonstration against CPO exports ban in front of the Coordinating Ministry for Economic Affairs Building, Tuesday, (17/5/2022) - Bisnis/Annasa Rizki Kamalina.

Bisnis, JAKARTA—Despite the growing volume of Indonesian palm oil exports, the price of this high-quality commodity has suffered a decline following the enactment of the European Union's anti-deforestation legislation.

Oil palm farmers in Indonesia are facing a series of setbacks. Just as the price of fresh fruit bunches (FFB) was declining, the European Union (EU) recently gave its approval for the global implementation of the European Union Deforestation Regulation (EUDR).

Scheduled to be enforced from December 2024 onwards, this new regulation encompasses seven key commodities, including palm oil, meat, wood, coffee, cocoa, rubber, soy, and their derivative products. The EUDR mandates that these commodities, which are widely recognized as major contributors to deforestation worldwide, must undergo a rigorous assessment process before being deemed free from deforestation.

Chair of the Indonesian Palm Oil Smallholders Association (Apkasindo) Gulat Manurung directly addressed the downward pressure on the price of FFB in various regions of Indonesia. He attributed the decline to speculators in the international crude palm oil (CPO) market who are leveraging the EUDR to secure the lowest possible prices for the commodity.

Cek Berita dan Artikel yang lain di Google News dan WA Channel
Editor: Aprilian Hermawan
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© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.