Indonesian palm oil industry seeks better supply chain governance for EUDR compliance

Stakeholders in the Indonesian palm oil industry are calling for improved governance of loading ramps and palm oil mills (PKS) that operate without owning plantations. This discussion comes as the industry prepares for the implementation of the European Union Deforestation Regulation (EUDR), which demands stricter supply chain traceability.

During a multi-stakeholder forum organized by UNDP Indonesia in Jakarta, experts emphasized that loading ramps serve a vital role as intermediaries between smallholder farmers and mills, especially given the scattered nature of smallholder plantations. Rather than eliminating these nodes, experts suggest integrating them into a transparent and traceable management system.

The Indonesian Palm Oil Association (GAPKI) expressed concerns that mills without plantations could disrupt the established palm oil ecosystem. GAPKI highlighted the need for transparency, inclusivity, and sustainability to meet global market demands, committing to support Indonesian Sustainable Palm Oil (ISPO) standards and digitalizing the supply chain to ensure smallholders are treated as equal partners.