- As a result of the recent introduction of the Renewable Energy Directive II (RED II) by the European Union (“EU”), Indonesian crude palm-oil (“CPO”) products have now been banned from entering the EU market.
- In response to this ban, the Indonesian Government has come up with a number of strategies, including a plan aimed at convincing the EU that the country’s CPO products are already produced in compliance with the required sustainability principles and criteria.
- According to Kasdi Subagyono, the Director-General for Plantations at the Ministry of Agriculture, this compliance is evidenced through the implementation of Indonesia Sustainable Palm Oil (ISPO) certification among local palm-oil companies.
- In addition to the abovementioned strategy, the Indonesian Government is also encouraging a greater utilization of CPO in order to fulfill the need for biodiesel within the domestic marketplace. This move should ultimately reduce the country’s overall dependence on fossil fuels, as well as lead to the creation of more markets able to compensate for the current lack of export activity. (ANT)
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