Palm oil is one of Indonesia’s key export commodities and contributes significantly to the country’s national and economic development. The Government of Indonesia has established various policies and programmes to address sustainability concerns associated with oil palm cultivation. These include deforestation, peatland degradation and loss, and forest and land fires. Other stakeholders, including the private sector, have developed their own sustainability policies and practices and ensuring that they comply with mandatory and voluntary sustainability standards. Public and trade policies in consumer countries are also strengthening and supporting sustainable palm oil value chains.
Challenges in relation to a sustainable oil palm sector in Indonesia include: the need to align policies and development goals with the country’s biodiversity, climate change and sustainable development commitments; coordination of various certification mechanisms; and limited capacity of smallholder farmers to comply with sustainability standards.
Further, the global trade of palm oil is regulated and influenced by diverse policy regimes, often leading to price fluctuations that ultimately disadvantage producers.
Under the Trade, Development and the Environment Hub (TRADE Hub) – a global research consortium led by the UN Environment Programme World Conservation Monitoring Centre (UNEP WCMC) and supported by UK Research and Innovation Global Challenges Research Fund (UKRI GCRF) – the Center for International Forestry Research (CIFOR), IPB University, and the University of Indonesia’s Research Center for Climate Change (RCCC-UI) are conducting research to further understand the complexities of, challenges to, and potential solutions for sustainable palm oil trade.
This high-level dialogue is an integral part of TRADE Hub’s research in Indonesia and a platform to bring key stakeholders and experts together to discuss issues and potential solutions for sustainable palm oil trade in Indonesia in light of global challenges surrounding food and energy crises.
The objectives of this high-level dialogue are:
- To understand recent phenomena and complexities in the palm oil trade, such as price fluctuations
- To discuss strategies for dealing with global challenges such as climate and food crises, and world’s economic recession
- To disseminate TRADE Hub findings and research results.
Interpretation in Bahasa will be available.
Agenda
Arrival and registration for in-person invitees
Zoom room opening for public participants
Opening
Introduction to the project
Prof. Dr. Herry Purnomo, CIFOR-ICRAF & IPB University
View presentation
Welcoming remarks
- Dr Robert Nasi, Director General of CIFOR
- Prof. Dr Arif Satria, Rector of IPB University
- Prof. Dr Neil Burgess, Principal Investigator for GCRF TRADE Hub and Chief Scientist with UNEP-WCMC
Opening remark
- Ir. Ary Sudijanto, MSE., Head of Agency for Standardization of Environment and Forestry Instruments, Ministry of Environment and Forestry, Indonesia
- Dr. Mego Pinandito, M.Eng., Deputy of Development Affairs, BRIN
Keynote speakers:
- Dr Musdhalifah Machmud, Deputy Director of Food and Agribusiness, Coordinating Ministry of Economic Affairs, Indonesia
“Role of Sustainable Palm Oil in Indonesia in the Global Food and Economic Crisis” - Dr. Bandung Sahari, Sustainability Affairs, Indonesian Palm Oil Association (GAPKI)
“Role of Private Sector for Sustainable Palm Oil Global Trade”
View presentation
MC: Dyah Puspitaloka, CIFOR-ICRAF
Ary Sudijanto
Mego Pinandito
Musdhalifah Machmud
Bandung Sahari
Coffee break
Session 1 – Palm oil price fluctuations and supply chains
Key discussion points:
- Why are global palm oil prices fluctuating, and what is the current situation?
- What are the impacts on cooking oil prices in Indonesia?
- What links are there between palm oil price fluctuations and palm oil supply chains in Indonesia?
- What measures are key palm oil sector stakeholders in Indonesia taking to address the impacts of price fluctuations?
Speakers:
- Oke Nurwan, Dipl., Ing., Special Staff for Export Improvement and Foreign Trade Development, Ministry of Trade, Indonesia
- Agus Purnomo, Senior Advisor on Sustainability for Golden Agri Resources Ltd
- Maria Goldameir Mektania, Indonesian Palm Oil Farmers Association (APKASINDO)
View presentation - Nurhanudin Achmad Surambo, Executive Director Sawit Watch
- Prof. Dr. Bustanul Arifin, Lampung University
- Desriko Malayu Putra, Sustainable District Association (LTKL)
View presentation
Oke Nurwan
Agus Purnomo
Maria Goldameir Mektania
Nurhanudin Achmad Surambo
Bustanul Arifin
Desriko Malayu Putra
Lunch break
Session 2 – Global food and energy crises and impacts on the palm oil sustainability roadmap
Key discussion points:
- What is the current state of the global food crisis and world economic recession, and what links are there with recent global events and geopolitical situations (Covid-19, the Russia-Ukraine war)?
- What impacts do the global food crisis and world economic recession have on global vegetable oil markets and trade, and especially palm oil?
- What measures are key global and national stakeholders taking to address palm oil sustainability in light of a global food crisis and world economic recession?
Speakers:
- Wisnu Lombar Dwinanto, representative from Directorate General of Multilateral Cooperation, Ministry of Foreign Affairs, Indonesia
- Irene Fischbach, Director Stakeholder Engagement and Communications RSPO
- Prof. Dr. Herry Purnomo, CIFOR-ICRAF & IPB University
- Diah Suradiredja, SPOS Kehati
Wisnu Lombar Dwinanto
Irene Fischbach
Diah Suradiredja
Coffee Break
Session 3 – Environment and livelihoods of people facing climate and food crises and a global economic recession
Key discussion points:
- How can environmental sustainability in the oil palm sector contribute to addressing climate and food crises and a world economic recession?
- What measures are key palm oil stakeholders taking to improve environmental sustainability?
- How can climate and food crises and a world economic recession impact community livelihoods, and particularly oil palm farmers?
Speakers:
- Prof. Suria Tarigan, IPB University
- Beatriz Fernandez, UNEP
- Mansuetus Darto, Secretariat-General of Palm Oil Farmers Union (SPKS)
- Sonya Dyah Kusumadewi, Researcher Officer, CIFOR-ICRAF
- Violace Amalia Putri, Sustainable Supply Chain Portfolio Development Manager, IDH – The Sustainable Trade Initiative, Indonesia
Sara Wayne
Wrap up and way forward
Wrap up
Prof. Dr. Iskandar Zulkarnaen Siregar, IPB University
View presentation
Way forward: Roundtable discussion planning
Brigitta Isworo, Senior journalist, CIFOR-ICRAF
Closing by MC
Read more CIFOR research outputs for TRADE Hub:
Jurnal articles
- Reconciling oil palm economic development and environmental conservation in Indonesia
- A political-economy model to reduce fire and improve livelihoods in Indonesia’s lowlands
Infobriefs
- Adapting global palm oil deforestation-free trade to benefit local economies and landscapes
- Harnessing political economy and global green trade to increase Indonesia’s palm oil sustainability
Infographics
- Atlas of actor- Social network and power analysis in Indonesia’s palm oil, coffee, and wildlife trade
- Independent oil palm smallholders are not homogenous groups
- Big data analysis to understanding online songbird trade in Indonesia: What are the most traded species?
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