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nvironmentalists and officials have stressed that a breakthrough is necessary to develop a sustainable palm oil industry

Speaking on the second day of the sixth International Conference on Oil Palm and Environment (ICOPE) in Nusa Dua, the director of policy, sustainability and transformation of the World Wildlife Fund (WWF) Indonesia, Aditya Bayunanda, said that Indonesia, as a major player in the industry, should conduct more research into palm oil to achieve sustainability.

“We need more research on palm oil, so that we can reach the point where palm oil can be developed sustainably,” Aditya said.

Palm oil is the second-largest contributor to export earnings in Indonesia, the world’s largest palm oil producer.

However, activists have long criticized the impact of rapid development of the industry on the environment.

Among the biggest challenges in achieving sustainability are rampant illegal oil palm plantations, particularly those in conservation areas, leading to serious deforestation.

The government has introduced guidelines, the Indonesian Sustainable Palm Oil (ISPO),
but only 12 percent of the 11.9 million hectares of oil palm plantations in the country are ISPO certified.

“Among things that have had a negative impact on the environment is the uncontrolled growth of oil palm plantations. Therefore, we need to focus on intensification,” he said, adding that technological advancement and innovation would be necessary if stakeholders aimed to speed up the process.

Among government projects to address environmental degradation triggered by the industry are programs to replant at least 185,000 ha of land belonging to smallholders this year.

According to government estimates, 2.4 million ha of the 4.5 million ha of land controlled by smallholders needs to be replanted.

The Indonesian Oil Palm Estate Fund (BPDPKS) has set aside Rp 250 billion (US$18.04 million) this year for replanting, which will be conducted in 75 regencies in 20 provinces.

“Of the total Rp 250 billion, Rp 4 billion has been disbursed,” BPDPKS director Hendrajat Natawidjaya said.

He said the replanting program had started in South and North Sumatra. “[We have] replanted 4,000 ha, of the 2.4 million ha targeted this year,” he said, citing the program as part of the intensification program.

Hendrajat pointed to the low productivity of smallholder oil palm plantations as they typically used low quality seeds. Their productivity lags well behind privately owned plantations that can produce 5 to 6 tons per ha per year.

“We aim to boost smallholder productivity so we can minimize further land encroachment,” he said, adding that smallholders usually relied heavily on the sector alone as they did not acquire skills to move on.

Meanwhile, Rini Indrayanti, national platform manager of the Sustainable Palm Oil Initiative (SPOI) project with the United Nations Development Program (UNDP) Indonesia, said, increasing the capacity of smallholders was paramount.

The UNDP and the Agriculture Ministry have established the Forum on Sustainable Palm Oil (FoKSBI) to ensure the sustainability of the palm oil sector.

“The FoKSBI has drafted a national action plan that includes capacity building for oil palm smallholders,” she said.

The national action plan is expected to be implemented in 18 provinces until 2023. It will be supported by central government and regional administration funding, palm oil funds and corporate social responsibility among other sources. It aims to support the government’s target to certify 70 percent of oil palm plantations by 2020.