Denpasar. Indonesia reaffirmed its commitment to sustainable palm oil production during the 7th International Conference on Oil Palm and Environment (ICOPE) at the Bali Beach Convention, Feb. 12-14, 2025. 

Deputy Agriculture Minister Sudaryono emphasized the importance of balancing economic growth with environmental responsibility in his keynote address, calling for collaborative efforts to advance sustainable practices in the industry.

With the theme “Oil Palm Plantations – Ecological Transformation Towards Climate and Nature-Positive Agriculture,” the conference brought together key stakeholders, including government officials, industry leaders, researchers, and environmental organizations such as WWF and France’s CIRAD.

Sudaryono underscored the ongoing challenges facing palm oil production, such as environmental degradation, climate change, and international regulatory pressures, particularly the European Union’s Deforestation-free Regulation (EUDR).

Sudaryono acknowledged the environmental impact of palm oil cultivation, citing issues such as land degradation, excessive chemical use, and the threat of wildfires. He stressed the need for integrated pest control and soil conservation methods to enhance biodiversity and reduce dependency on chemical fertilizers. The government is also encouraging the adoption of agroforestry and low-emission agricultural practices to mitigate climate change effects and improve long-term sustainability.

“Land fires not only harm plantation businesses but also reduce palm oil productivity due to smoke pollution, which inhibits photosynthesis,” he said, referencing data from the Palm Oil Research Center (PPKS) indicating productivity losses of 0.2-5.5 percent due to haze.

Palm Oil’s Global and Economic Impact
CEO of Golden Agri Resources (GAR) Franky Widjaja highlighted the vital role of palm oil in both global food security and Indonesia’s economy.

“Palm oil is a blessing, but this blessing is not for Indonesia alone. Palm oil makes up 40 percent of the global supply of the four most widely used edible oils,” Franky said.

According to data from the Trade Ministry, as of September 2024, the country’s non-oil and gas exports had reached $181.14 billion, with vegetable oil and fat exports—primarily palm oil—contributing $14.43 billion. 

"The palm oil industry also provides a livelihood for over 3 million people, serving as the cornerstone of rural economic development," he added.

Regulatory Measures and Sustainable Certification
To address sustainability concerns and comply with international standards, the government has implemented the Cultivation Registration Certificate (STDB), which records plantations under 25 hectares to ensure better governance and access to financial support. Additionally, Sudaryono reinforced Indonesia’s commitment to the Indonesian Sustainable Palm Oil (ISPO) certification, which is now mandatory under Agriculture Minister Regulation No. 38 of 2020.

“The ISPO certification ensures sustainability in palm oil production by addressing greenhouse gas emissions, biodiversity conservation, and waste management,” he explained, urging all industry players, including smallholders, to comply with ISPO standards.

Sudaryono called on the government, private sector, non-governmental organizations, and the broader palm oil community to accelerate sustainable agriculture practices. He underscored the importance of developing new agricultural models focused on resource efficiency, emission reduction, and ecosystem restoration to secure the future of Indonesia’s palm oil sector.