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Indonesia is actively constructing a comprehensive digital information system designed to trace sustainable-certified palm oil exports back to their specific points of origin. This strategic move, announced by a senior government official on Thursday, comes as the nation prepares for the implementation of stringent new European trade regulations at the close of this year.
The European Union Deforestation Regulation (EUDR), scheduled to take effect on December 31, mandates that companies must verify that commodities sold within the EU have not been produced on land subjected to deforestation.
Dida Gardera, a senior official at Indonesia's Coordinating Ministry for Economic Affairs, detailed that the Information System for Indonesian Sustainable Palm Oil (SI ISPO) is engineered to provide end-to-end transparency. The platform will cover the entire journey of certified palm oil, monitoring activity from large plantations and smallholders through to collection points, mills, downstream processing facilities, and final export terminals.
Speaking at an industry conference in Bali, Gardera emphasized that the dual approach of certification and digital traceability aims to guarantee that Indonesian palm oil stems from legal and sustainable supply chains. He noted that SI ISPO is being developed in alignment with international standards, specifically the EUDR, and indicated that the tracing of supply chains for certified entities could begin as early as next month.
The EUDR involves a ban on imports of cocoa, palm oil, and other key commodities linked to forest degradation unless exporters can pinpoint the exact plot of land where the crop was grown. This is particularly significant for Indonesia, as the EU remains its fourth-largest export market, despite a recent dip in volume caused by the bloc's tightening environmental criteria.
To ensure data integrity, the new platform will synthesize information from various government bodies, including the ministries of forestry, agriculture, industry, and agrarian affairs. While the EU recently proposed a 12-month delay to the regulation due to concerns over IT readiness, Indonesia is moving forward to ensure its infrastructure is robust and ready for the shift.
Source: The Edge Malaysia