The government will bear the costs of managing oil palm plantations in an environmentally friendly manner that is owned by the people. This was done in order to counter the EU accusation that the Indonesian palm oil was not managed sustainably.
The management of the oil palm plantation will follow the Indonesian Sustainable Palm Oil System (ISPO) standards. The costs associated with that will be borne by the government through the Palm Oil Plantation Management Agency (BPDP). The presidential regulation (perpres) regarding that is being prepared.
“Our ISPO has prepared a new Perpres because the old ISPO is less assertive in giving support to small plantations. The government has paid for it only through BPDP. There is money, there is no need to fear it,” Darmin explained at Borobudur Hotel, Jakarta on Wednesday (31 / 7/2019).
Darmin said, the government will later finance matters related to the rejuvenation of oil palm plantations, of course, which are in accordance with the ISPO standard.
“We can pay what, Rp. 25 million per hectare. We clean the garden, we provide the seeds, we plant it, we take care of the certificate, then we give it back,” he explained.
He explained that the Perpres was in the final process. When it has been implemented, there is no reason why the EU accuses Indonesian oil palm of being managed in an unrelated manner. It is targeted that the Perpres will be ready this year.
“Now we prepare it, in the final process. If it’s finished, we fix it so that small oil palm plantations really meet the standards and we can say this is part of sustainability,” Darmin added.