InfoSAWIT, JAKARTA – Uli Arta Siagian, Coordinator of the Indonesian Forum for the Environment (Walhi), expressed concerns regarding the impact of international policies on palm oil expansion in Indonesia over the past two decades. International policies, particularly those related to renewable energy, are said to have spurred massive palm oil expansion, affecting the environment.
Uli explained that the European Union's energy policy in 2007-2008, which encouraged the use of biodiesel as a primary energy source, was a major trigger for the surge in palm oil expansion in Indonesia. Since then, the area of palm oil plantations in Indonesia has drastically increased from around 7 million hectares to nearly 20 million hectares today.
However, this massive expansion has not come without issues. "This massive palm oil expansion contributes to environmental degradation, deforestation, and the appropriation of indigenous lands," Uli stated during the End-of-Year Press Conference on Palm Oil Labor 2024, attended by InfoSAWIT recently.
In the last two to three years, global trends have shown a shift towards environmental protection. The European Union, for instance, has adopted deforestation-free regulations that will come into effect in December 2026. This regulation requires commodities entering Europe, including palm oil, to meet deforestation-free and legality standards.
"The one-year timeframe leading up to the implementation of this policy will have significant impacts, not only on palm oil expansion but also on producers like Indonesia," Uli emphasized. However, he noted that the Indonesian government has not fully prepared to face these regulations.
Walhi pointed out that developed countries, including the European Union, contribute to environmental degradation in Indonesia through their consumption of commodities. Yet, these countries are now imposing strict environmental standards that must be adhered to by producing countries.
"The Indonesian government's rejection of these regulations indicates a lack of awareness that the current global trend is more focused on environmental protection," Uli remarked. He also mentioned that the UK has adopted similar legislation, and other countries, such as the United States, are drafting policies related to human rights and environmental issues.
According to Uli, international environmental policies could influence investment patterns in Indonesia's palm oil sector. "Investments that do not meet global standards may struggle to survive in the coming years," he stated.
Walhi urged the Indonesian government to take strategic steps to address these global policy changes. "We need to focus on sustainability, not just short-term interests, so that Indonesia remains relevant in the international market without compromising the environment," Uli concluded. (T2)
