In the context of traceability, smallholder farmers represent the\nmost vulnerable point in the supply chain.<\/p>\n
Jakarta (ANTARA) - Traceability is considered to play a crucial role\nin the palm oil industry to maintain access to global markets while\nstrengthening the legitimacy of sustainable governance practices.<\/p>\n
However, researcher Windrawan Inantha from the Strategic Advisor\nCenter for Entrepreneurship, Change, and Third Sector (CECT)\nSustainability at Trisakti University explains that the main challenge\nin implementing traceability in the national palm oil industry is that\n42% of Indonesia\u2019s palm oil area is managed by smallholders.<\/p>\n
\u201cIn the context of traceability, smallholder farmers become the most\nfragile point in the supply chain,\u201d he stated during his remarks in\nJakarta on Monday.<\/p>\n
He noted that the European Union, through the EU Deforestation\nRegulation (EUDR), demands that commodities like palm oil be proven free\nfrom deforestation and traceable from the final product in supermarkets\nback to the original plantation location.<\/p>\n
In the global palm oil trade arena, he continued, the European Union\nhas shifted from being a market or buyer of products to a determinant of\nthe industry\u2019s direction.<\/p>\n
This pressure from the European Union presents a major challenge for\nthe national palm oil industry because the domestic market has almost\nnever requested information on the origin of crude palm oil (CPO) in\ncooking oil bottles or derivative products.<\/p>\n
\u201cPalm oil traceability today is largely driven by market access\npressures and global governance rather than domestic consumer demands,\u201d\nhe said.<\/p>\n
According to him, there are at least five challenges in implementing\ntraceability at the smallholder level, namely land legality, technical\ncapacity, weak economic incentives, certification costs and farmer\norganisation, as well as limitations in supporting human resources.<\/p>\n
\u201cA system that demands precise geolocation, legal documents,\nadministrative recording, and digital connectivity will always be easier\nto implement by large companies than by independent smallholders,\u201d he\nsaid.<\/p>\n
Therefore, Windrawan hopes that the Plantation Fund Management Agency\n(BPDP) can act as a catalyst for transformation in the plantation sector\nwhile addressing traceability challenges in the national palm oil\nindustry.<\/p>\n
He encourages BPDP to make traceability readiness a priority\ncondition for programme beneficiaries. BPDP\u2019s replanting programmes,\ninfrastructure facilities, training, and institutional support should\ngive more weight to farmer groups that already have E-STDB, plantation\nmaps, or ongoing legalisation processes.<\/p>\n
\u201cPolicy incentives must feel tangible at the farmer level,\u201d he\nsaid.<\/p>\n
He hopes BPDP will fund data infrastructure at the smallholder level.\nBPDP needs to support people\u2019s plantation mapping, training in\ngeolocation device usage, digitalisation of farmer group archives, and\nsustainable field mentoring schemes.<\/p>\n
Furthermore, BPDP should link the traceability agenda with land\nlegality resolution; additionally, the agency needs to collaborate with\nthe Ministry of Agrarian Affairs and Spatial Planning\/National Land\nAgency, the Ministry of Forestry, local governments, and farmer\ninstitutions so that legality issues are not left as a permanent\nbottleneck.<\/p>\n
\u201cAs long as land status is unclear, traceability data will not be\nsolid,\u201d he stated.<\/p>\n
He hopes BPDP can facilitate pilot incentive programmes such as price\npremiums, purchase contracts, or other support schemes that allow\nfarmers to see direct economic benefits from traceability.<\/p>\n
\u201cAs long as fruit from traceable plantations is priced the same as\nnon-traceable ones, change will progress slowly,\u201d he said.<\/p>\n
He added that BPDP should continue to promote the development of\nharvest traceability methods related to supply chain traceability\ncertification as a priority topic by using its research and development\nfunction more sharply.<\/p>\n
On that occasion, the Doctor in Sustainable Development Management\nappreciated BPDP\u2019s announcement of preparations to develop a\nWebGIS-based ISPO information system and mobile application.<\/p>\n
\u201cThis is the right signal. The challenge now is to ensure that\nresearch, digital systems, and field financing move within one\narchitecture, rather than operating independently,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/researchers-highlight-traceability-challenges-in-the-national-palm-oil-industry-1776664250", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }