Little Ground Broken In New Palm Oil Rules
28 June 2010
The government on Friday responded to rising international pressure on
the country's palm oil producers by implementing a new certification
system for environmental sustainability in the production of crude palm
oil.
However, the new standards are unlikely to change the belief
among environmental groups that the palm oil producers are contributing
to deforestation and global warming, with Greenpeace immediately
dismissing the system as a repackaging of the country's existing laws on
palm oil production.
Bustar Maitar, team leader for forests at
Greenpeace Southeast Asia, said he was disappointed, especially because
the market, including retail consumers, is eager to see improved
criteria to ensure sustainability in palm oil production.
"I
don't see anything new or improved in the ISPO. It's only a collection
of existing regulations and laws," Bustar said.
The certification
system, called Indonesian Sustainable Palm Oil, is mandatory for all
palm oil producers. Much of its primary environmental criteria is a
duplication of existing regulations. It will prohibit, for example, the
use of peatland deeper than three meters, in line with a regulation
issued in 2009.
It also prohibits the burning of forests for the
purpose of clearing for plantations, in line with a 2004 law, with
those found guilty of breaching the regulations facing a maximum fine of
Rp 10 billion ($1.1 million) and a maximum prison sentence of 10 years.
Those
found guilty of destroying endangered species, such as the orangutan,
living near plantations will face fines of Rp 200 million and up to 10
years in prison. The measures take effect on Jan. 1, 2011.
"The
ISPO is intended to ensure that Indonesia is promoting the development
of palm oil in a sustainable way. It will become mandatory and legally
binding for all in the palm oil business," Deputy Agriculture Minister
Bayu Krisnamurthi said.
The ISPO initiative follows a two-year
moratorium on the clearing of primary forests and peatlands agreed to
last month by President Susilo Bambang Yudhoyono as part of a $1 billion
deal with Norway intended to fight climate change.
The
government has said that under the agreement, palm oil producers would
not be allowed to clear primary forests or peatlands for palm
plantation. The moratorium supersedes the ISPO standards in some cases,
such as the use of peatland.
The nation's palm oil producers have
come under heavy attack over the past year. Environmentalists say the
growth of palm oil plantations contributes to deforestation and
increases emissions of greenhouse gases. These claims are being taken
increasingly seriously by international palm oil buyers.
Global
consumer products giant Unilever suspended purchases from major palm oil
producer the Sinar Mas Group in December, after Greenpeace alleged it
was devastating rainforests and habitats for endangered species. Nestle
followed suit in March.
Based on data issued by the Trade
Ministry, the export value of crude palm oil products to countries in
the European Union in 2009 was worth $2.26 billion.
Julian
Wilson, the EU ambassador for Indonesia and Brunei, told the Jakarta
Globe that Europe welcomed Indonesia's steps to create its own criteria
for palm oil sustainability, since it shows the country's willingness to
get serious in the fight against deforestation and carbon emissions. He
said the European Union was ready to discuss the new standards with
Indonesian officials.
"It sounds like a positive advance,
especially if it's legally binding," Wilson said.
He said large
palm oil buyers were increasingly wanting to make sure that the palm oil
they were buying was sustainably produced.
"Producers have to be
able to comply with their consumers' requests," Wilson said.
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