InfoSAWIT, NUSA DUA — The global palm oil industry is at a critical turning point, not just because of regulations, but because of perception. This was emphasized by Pietro Paganini, Adjunct Professor of Business Administration at John Cabot University Rome, at the Indonesia Palm Oil Conference (IPOC) 2025.

Paganini highlighted the irony: palm oil is the most productive, most inclusive commodity that employs millions, yet it carries a poor global reputation. "Why is a commodity that is so productive and essential treated as a villain? The answer lies in perception—and today, perception is stronger than reality."

UDR: Threat or Opportunity?

Paganini urged the palm oil industry to stop seeing the EU Deforestation Regulation (EUDR) as the main enemy. He argued that global consumers increasingly demand zero deforestation and traceability.

"Regulations come because consumers want them. And consumers are never wrong. So if they ask for traceability and due diligence, we must provide it," he said.

He views the EUDR as a great opportunity for the development of supply chain technology, including satellites, drones, and AI. He proposed a 24-month testing phase for companies and a one-year delay for smallholders to organize their data and field readiness, ensuring fair implementation.

Paganini closed by saying the palm oil industry must become a leader in the digital transformation of the global supply chain. "The world is moving in that direction. Palm oil must lead, not follow, from smallholders to large corporations." (T2)