GOI and UNDP Discussed Indonesia Sustainable Palm Oil Project

16 Jul 2014

imageDirector of Multilateral Foreign Funding Bappenas, R.M Dewo Broto Joko P., SH, LLM (right) and Deputy Country Director UNDP Indonesia, Stephen Rodriques

UNDP, Ministry of National Development Planning (BAPPENAS) and the Ministry of Agriculture on Thursday decided to cooperate on a national project that aims to promoting sustainable practices of palm oil production (SPO) in Indonesia, the world’s largest palm oil producer. 

The agreement was made during a meeting attended by Director of Multilateral Foreign Funding Bappenas, RM Dewo P. Broto Joko, SH, LLM; Deputy Country Director of UNDP Indonesia, Stephen Rodriques; and the Directorate General of Plantation (Ministry of Agriculture), Dr. Ir. Hendrajat Natawidjaja.

According to Dr. Ir. Hendrajat Natawidjaja, the background of the ISPO projects are as follows: a) Indonesia is the world’s major palm oil producer, with a production reaching 26 million tons of crude palm oil (CPO). Nonetheless, in recent years oil palm plantations have been accused of being the culprit of deforestation and social conflict; b), some farmers have been accused of carrying out non-environmentally friendly and sustainable practices, using fake seeds and clearing forest around their plantations.

"Some of the problems faced by the farmers are limited capacity, inadequate organizational skill as well as lack of knowledge and productivity," said Dr. Ir. Hendrajat Natawidjaja.

The project, worth US$15,500,000 will run for five years (2014-2108), in three pilot project locations: West Kalimantan Province, Riau Province and West Kalimantan Province.

"Two districts will be selected in each province," added Dr. Ir. Hendrajat Natawidjaja.

In its implementation, the project will involve several stakeholders, namely: 1) Ministry of Forestry 2) Ministry of National Development Planning/Bappenas;3) National Land Agency; 4) Ministry of the Environment; 5) Ministry of Trade;6) Sub-national Government at provincial and district levels; 7) Non Governmental Organizations (NGOs); 8) President’s Work Unit for Development Monitoring and Oversight (UKP4); 9) The National Standardization Agency; 10) International Companies such as Kraft; 11) Associations such as Association of Indonesian Palm Oil Producers (GAPKI); 12) small and large scale producers such as PT. SMART Tbk; and 13) International NGOs such as the Zoological Society of London, WWF and Greenpeace International.

Dr. Ir. Hendrajat Natawidjaja outlined activities that will be performed during the execution of the project: First, strengthening the application of ISPO for forest conservation, improving conservation of biodiversity and greenhouse gas (GHG) emissions reduction; second, facilitating governance and mediation as a form of social responsibility of the government with the aim of empowering the relevant community and to ensure the smooth implementation of the conflict mediation system; Third, establishing national and provincial platforms to ensure transparency in support of the ISPO initiative in order to promote sustainable palm oil.

RM Dewo Broto Joko P., SH, LLM conveyed several responses and questions related to the administration, finance, monitoring and evaluation of the project. He said that the project was timely, as land conflict issues had not been given a greater attention. In addition, the project is expected to help reduce GHG emissions. "If this project is successfully implemented at the three pilot provinces, Bappenas is ready to help replicate this project in other regions, "he said. (*)