The Goal of Palm Oil Plantation Audit Should be Clear; What about ISPO?

foto: Aceng Sofian/SawitFest 2021/ ilustrasi kebun sawit
The Goal of Palm Oil Plantation Audit Should be Clear; What about ISPO?

InfoSAWIT, JAKARTA – What the government would do to improve palm oil governance needs appreciation. Palm oil sector audit raises to improve every governance. The audit should also reveal that palm oil plantation companies should have their office in Indonesia.

Business legal expert of Universitas Prasetiya Mulya, Rio Christiawan said, locating one palm oil company’s office in Indonesia is about to get ease access in monitoring, data collection, and decision making. Besides, it would easily coordinate with the management of palm oil company, and get data.  

Rio thought, by having the office in Indonesia, palm oil company would be closer to the Government of Indonesia to have many businesses, such as, about agreement or synergic project(s) with the government.

But it is admitted, re-locating office from other country to Indonesia is not easy thing because many would be ahead because it could happen that the managements and staffs are not Indonesian citizens.

Having office in Indonesia, he continued, would be a concern too for it may happen that a company would not be ease of doing business in Indonesia, namely about legal certainty, high corruption, and unstable politics.

About audit object, Rio suggested, the government has to audit the upstream governance, the processing, and the mills in downstream. “The audit should cover the upstream to downstream sectors,” he said to InfoSAWIT.

Actually palm oil governance audit is regulated in President’s Regulation Number 44 / 2020 in Indonesian Sustainable Palm Oil or in the international level, it is regulated in Roundtable on Sustainable Palm Oil (RSPO) audit.

It is important for the government to focus the audit itself knowing that ISPO, RSPO and ISO are complete enough. “The government should empower environmental, social, and governance (ESG) aspect, financial audit, and obligation fulfillment to this country for the mills knowing that the audit itself is about fulfillment sufficiency for this country,” Rio mentioned. (T2)