Palm Oil Still Faces a Number of Problems

Transparency International Indonesia researcher Bellicia Angellica said palm oil is still Indonesia's main commodity because of the government's ambition to become the world's largest producer.
This ambition is even seen as almost successful because in 2021, Indonesia will export 34 million tons of palm oil products to various countries. Transparency International Indonesia noted that palm oil production every year also has a significant increasing trend. In 2008, palm oil production was recorded at 19.4 million tons and increased to 48.3 million tons in 2020. This production is mostly for export. “This figure is very high even though the world is still in a pandemic condition. This ambition has also made many entrepreneurs switch to palm oil and resulted in massive expansion not only from an ecological perspective, but also socially and culturally,” he said during an online discussion about palm oil governance in Indonesia. However, many facts show that palm oil governance in Indonesia is still poor with various problems. Director of PT Sinar Mas Agro Resources and Technology (SMART)/Golden Agri Resources (GAR) Agus Purnomo said, from various bad accusations against palm oil companies, there are still companies that are trying to run their business according to the rules and be more sustainable. The company's performance can also be proven through audits or financial audits on a regular basis every year. “Every year, our oil palm plantations are inspected by more than 450 audits, including those related to certification from the government. So, it is very possible to realize good and fair governance if palm oil companies have the intention to be more sustainable,” he said

|•SOURCE•| Articles :KOMPAS | Image :MARKET NEWS |

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