CIFOR is developing a value chain dynamic model to simulate the impacts of various global sustainable palm oil trade scenarios on Indonesia with the aim of contributing to addressing the intractable challenge of establishing sustainable palm oil trade that provides benefits for forests and economic benefits for people. Scenarios developed under this model show EUDR implementation having the potential to impact significantly on Indonesia (Purnomo et al. 2022b), as 11% of the country’s total palm oil exports go the the EU, which constitutes Indonesia’s fourth largest export destination (UN Comtrade 2021). The simulation suggests the EUDR may help to reduce deforestation and GHG emissions in Indonesia (Purnomo et al. 2022b) through its potential contribution to integrating sustainable palm oil trade initiatives into the country’s national climate change mitigation strategy. Indonesia’s FOLU Net Sink 2030 policy aims to mitigate climate change by avoiding and controlling deforestation so the forestry and other land use (FOLU) sector can absorb more carbon that it emits (MoE 2021). However, EUDR implementation also has the potential to create economic losses for Indonesia’s oil palm sector, especially in the short term (Purnomo et al. 2022b).
In December 2022, CIFOR conducted a national roundtable discussion to identify the perspectives of key Indonesian stakeholders on potential challenges posed by the EUDR, as well as pathways for addressing and adapting to the new policy. Key takeaways from the discussion were the need to recognize and integrate existing national efforts to halt deforestation and improve sustainable palm oil, which were seen as plausible pathways and win-win solutions for the EU and for Indonesia in achieving its main climate change mitigation strategy in FOLU Net Sink 2030.
This policy dialogue is part of CIFOR’s study for 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 the UK Research and Innovation Global Challenges Research Fund (UKRI GCRF).
The aims of the policy dialogue are to:
- Recognize Indonesia’s existing policies on and achievements in sustainable palm oil, halting deforestation and biodiversity loss, and climate change mitigation;
- Understand consumer countries’ demand for and policies on sustainable palm oil, especially the EU through the EUDR, and associated challenges and impacts, including on smallholders;
- Discuss potential synergy between the EUDR and national efforts to ensure a sustainable palm oil supply chain and smallholder well-being, and how their integration can contribute to FOLU Net Sink 2030 and Indonesia’s climate change mitigation efforts.
The event will begin with opening remarks and keynote speeches before commencing with high-level discussion sessions. The main language will be English, but with some Bahasa Indonesia. Interpretation services will be provided.
In-person participant is by invitation only. For RSVP attendance in Jakarta venue please contact Salwa Nadhira (firstname.lastname@example.org).
For further information:
Research assistant, CIFOR-ICRAF