OVERVIEW
Indonesia is the world’s largest producer and exporter of crude palm oil (CPO), an important food security component for the naion which is found in half of all packaged products sold in supermarkets worldwide. Palm oil exports are a key part of Indonesia’s economic growth strategy, accouning for between $16 billion - $20 billion in foreign export earnings annually. Addiionally, the industry has directly contributed to the creaion of millions of rural jobs.
Over the years however, the huge growth of the oil palm industry has at imes threatened con-siderable amounts of essenial ecosystem areas. Other challenges include deforestaion of high biodiversity areas, forest ires brought about by land use change for agriculture, high greenhouse gas emissions, limited extension and support services for smallholder farmers, and confusion regarding policies pertaining to land legality and high conservaion areas. These led the govern-ment to announced a moratorium on on new licenses to establish palm oil plantaions, which currently is being inalised.
In recent years, stakeholders including numerous NGOs, producers and mulinaional companies have made a variety of commitments toward achieving more sustainably produced palm oil. Yet the challenge to rollout these eforts — beyond individual supply chains, across more than 11 mil-lion hectares of Indonesian oil palm plantaions, some of which link to and support more than 1.5 million smallholder farmers — sill remains.
To coordinate much of the great work that has begun, and to mobilise criical resources, the
UNDP and the Ministry of Agricultre joined forc -es in 2014.
The partnership, known as the Sustainable Palm Oil Iniiaive (SPOI), aims to catalyse and scale-up fundamental change by deining and sscale-upport- support-ing long-term sustainable soluions. This will be done through a government-led muli-stakehold-er naional acion plan that betmuli-stakehold-er aligns naional, provincial and district policy with the needs of the private sector, communiies, farmers and the en-vironment.
Addiionally, the iniiaive aims to improve the capacity and legality of oil palm smallholders through the strengthening of the naional Indo-nesia Sustainable Palm Oil (ISPO) standard, a sus-tainable palm oil ceriicaion system mandated by the government.
PROJECT COMPONENTS
1. Strengthen the smallholder ISPO ceriicaion process focusing on good agricultural pracices and environmental protecion
2. Strengthen ISPO to protect forests, enhance biodiversity conservaion and miigate and moni-tor GHG emissions
3. Develop more efecive conlict resoluion processes at the district level
4. Support the ISPO process as part of ensuring a more sustainable naional oil palm industry
5. Support the government to establish a plat-form to facilitate muli-stakeholder consensus for acions and policies required to achieve industry-wide sustainable palm oil development
THE
SUSTAINABLE
PALM OIL INITIATIVE
Sustainable Palm Oil Iniiaive, 2016 HighlightsScaling-up sustainable palm oil producion in Indonesia
2016 Highlights
Duraion
2014 to 2018 (4 years)
Locaion
Naional, Riau, South Sumatra
and West Kalimantan
The Government of
Switzerland (SECO)
Naion, Riau, South
Sumatra and West Kalimantan
2
Newsleter Issue n. 45, January 2016Stakeholders Present Drat Naional
Acion Plan for Sustainable Palm Oil
Ater oicially launching the Forum Kelapa Sawit Berkelanjutan Indonesia (FoKSBI), Indonesia’s Palm Oil
Plaform, in 2015, this year saw the four plaform working groups and numerous specialised taskforces
develop the irst drat of the Naional Acion Plan for Sustainable Palm Oil
Ater more than 18 months of negoiaions, discussions,themaic workshops and a series of root cause analysis-es, more than one hundred stakeholders represening around 50 organisaions contributed to the producion of the irst drat Naional Acion Plan for Sustainable Palm Oil. The muli-stakeholder process, led by a gov-ernment steering commitee to achieve consensus on key acions and soluions for sustainability in the palm oil sector, has made signiicant progress toward breaking down barriers and encouraging collaboraion paricularly between government and private sector organisaions.
Photo: Plaform paricipants discuss the barries to smallhold -er inancing and possible reccommendaions for soluions at a working group session held in January 2016.
Recommendaions within the Naional Acion Plan focus heavily on enhancing the capacity of smallholder produc -ers who currently account for around 40 percent of the naion’s total CPO producion. Acions include redeining land legality permits paricularly for smallholders, stream-lining ceriicaion systems; agreeing on a singular map of forested and producive areas; explaining the ISPO cer-iicaion system as part of an increased adopion; en-abling the extension services required for smallholders to achieve ceriicaion; and deining naional and provincial legal requirements speciic to land use and business per-mits for oil palm planters.
“This FoKSBI is a very good and imely iniiaive as Indo
-nesia is changing our paradigm from development to sus
-tainable development. Sus-tainable development requires a paricipatory development model that involves muliple stakeholders and FoKSBI is an example of that.”
Prof. Bungaran Saragih Former Minister of Agriculture
The next step involves widespread consultaion to gain consensus and commitment for the Naional Acion Plan. This will require engagement through regional plaforms, so that local authoriies and producers are also involved in shaping what will ulimately be a naional response to an issue of growing concern to people across Indonesia and the world. To learn more visit www.foksbi.id or contact [email protected].
SPOI
HIGHLIGHTS
FROM 2016
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UNDP Indonesia Sustainable Palm Oil Initative Highlights 2016
www.id.undp.org / www.foksbi.id
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Plaform Leads Eforts
To Beter Understand
Conservaion Laws
Women in Palm Oil
Internaional Women’s Day CampaignIn Indonesia, women play a vital role in the palm oil sector, which
is esimated to directly employ 1.5 million female workers. On March 8, Internaional Women’s
Day, UNDP Indonesia traveled to Sintang district in West Kali
-mantan, to learn more about the
work of women on the oil palm
plantaions of Borneo and to bet-ter understand the inequaliies
they face. The UNDP partnered
with the Guardian and the Jakarta
Globe to recognise and bring at-tenion to women working in the
palm oil industry.
Smallholder Mapping
Agriculture Ministry Hosts Consultaion to Develop DatabaseCurrently, there is no single com -prehensive smallholder mapping
and database that can be used
as a reference for the govern
-ment or other organizaions in
addressing the issues within the
palm oil industry. In April, FoKS-BI coordinated a discussion and a series of presentaions focused
on smallholder mapping and data
-base development. The purpose of the meeing was to exchange informaion on smallholder map-ping and database development eforts with government repre-sentaives and NGOs. The
sev-eral ministries present welcomed
NGOs to submit their exising data and research to the FoKSBI secreatariat for naional use and consideraion during the devel-opment of the Naional Acion
Plan.
Provincial Plaform Launch
Pelalawan, November 2016
In an efort to ensure
consen-sus and commitment for the
Naional Acion Plan in re-gional producing areas, FoKS-BI launched its irst provincial
a vessel to ensure that local
authoriies and producers are
also involved in shaping recom
-mendaions and deining
pol-icies for the industry moving
forward. In 2017 FoKSBI will launch two addiional provin-cial plaforms in South Sumatra
and West Kalimantan.
A landmark process between Ministries, with input from the private sector, NGOs and other stakeholders, began in Novem-ber to look at the issues relaing to HCV guidelines and how they relate to exising Indonesian environment and high biodiver-sity protecion laws. Cooperaion between the Ministry of Agriculture and the Minis -try of Environment and Fores-try is intend-ed to develop guidelines and recommen -daions for the government in managing the complexity of essenial ecosystem area (KEE) and HCV areas in Indonesia.
With support from HCV Network Indone-sia (Jaringan Nilai Konservasi Tinggi Indo-nesia), the FoKSBI HCV taskforce — jointly led by the Ministry of Agriculture and the Ministry of Environment and Forestry — will publish a series of guidelines that will be one of the suggesions and
consider-aions for the revision of the HCV Indo-nesia toolkit with an emphasis on naional legal interpretaion. The HCV guidelines will be adopted under an exising Minis-try of Environment and ForesMinis-try Decree that regulates KEE and also the Gener -al Director Regulaion that oversees high conservaion value forest. Once the HCV guidelines are oicially recognized by the Ministry of Environment and Forestry un-der KEE, the taskforce will shit focus on the process for these guidelines to be con-sidered and adopted at the highest level of Indonesian law.
“This process between ministries is crucial for bridging exising regulaions related to NKT [HCV].”
Former Vice Minister of Agriculture and Plaform adviser, Rusman Heriawan
UNDP Indonesia Sustainable Palm Oil Initative Highlights 2016
Smallholder Ceriicaion
Strengthening the
Naional Sustainable
Palm Oil Standard, ISPO
A cooperaive of 500 oil palm farmers from the Sumatran province of Riau are on track to becoming the irst inde-pendent ISPO ceriied farmers thanks to a muli-stake-holder training iniiaive, which began this year. Ater having received the ISPO required culivaion registra-ion leter (surat tanda datar budidaya – STDB), through a series of regional government consultaion, the farmers will be independently audited and are expected to re-ceive ISPO ceriicaion in early 2017. Once these farm-ers are ceriied, they will have priority privilege to sell their fruits to ISPO ceriied companies.
The outcome of the smallholder pilot training phase — a total of 2,500 farmers, in Pelalawan, Riau — will cre-ate a model for how best to scale-up ISPO ceriica-ion throughout Indonesia’s oil palm producing regceriica-ions. UNDP Indonesia will support the Ministry of Agriculture to rollout ISPO ceriicaion beyond Pelalawan with sup-port from a new GEF project, which will be launched in early 2017.
Coinciding with the Government’s launch of the inter-min-isterial taskforce to strengthen ISPO, FoKSBI with support from the SPOI project, facilitated a series of muli-stakehold-er discussions to gathmuli-stakehold-er input from a variety of stakeholdmuli-stakehold-ers, especially those represening internaional trading partners. This ongoing muli-stakeholder plaform dialogue is expected to help inform the work of the ISPO inter-ministerial taskforce as they prepare a roadmap for an ISPO Presidenial Decree, which will be released for public consultaion in 2017. This will eventually lead to a beter ISPO in organizaional aspect, cer-iicaion aspect, and sustainability standards aspect, which will lead to a more sustainable palm oil industry as a whole.
“With our friends at the Ministry of Agriculture we are working together to open ISPO to all paries to give inputs and com
-ments for the beterment of it. We also need to consider our exising laws and regulaions. I invite all of our friends to try and widen the scope... and combine our ideas.”
Musdhalifah Machmud, Deputy Minister Food and Agriculture, Coordinaing Ministry for Economic Afairs
ISPO-RSPO Joint Study
UNDP Indonesia is also supporing the government to coordi-nate and assess the potenial for collaboraion between ISPO and the internaionally recognized palm oil ceriicaion stan-dard, RSPO. As a irst step to develop synergies, the UNDP supported a joint ISPO-RSPO study to idenify the similariies and diferences between the two schemes. The indings rec-ommend ways for ISPO and RSPO to become strategic part-ners, rather than compeitors and will inform the potenial of a joint audit between the two schemes in the future.
Moving forward, the ISPO Secretariat and RSPO are expect-ed to coninue high-level expert dialogue in order to devel-op concrete aciviies that mutually enhance the compeive-ness and sustainability of Indonesian palm oil. Speaking at the launch of the study, Chairperson of the ISPO Secretariat, Herdradjat Natawidjaja said, “This study marks a turning point in the internaional community’s efort to support and work with Indonesia’s laws and regulaions relaing to the palm oil sector.”
Sustainable Palm Oil Iniiaive
www.id.undp.orgUNDP Green Commodiies Programme Proudly Supported By
