Lufaldy Ernanda, Director of Financial Derivatives and Carbon Exchange Supervision, highlighted Indonesia's dual goals: achieving its Nationally Determined Contribution (NDC) target by 2030 and Net Zero Emissions by 2060. He emphasized that carbon trading, launched on 26 September 2023, will become a new revenue stream for the palm oil industry, aligning it with international standards and enhancing its sustainability. The carbon trading initiative is a significant step in Indonesia’s contribution to global climate action, with revenues reinvested in environmental protection, particularly carbon emission reduction. The carbon trading ecosystem involves various players, with the Financial Services Authority (OJK) overseeing the secondary market and relevant ministries managing the primary market. Rizal Affandi Lukman, Secretary General of the Council of Palm Oil Producing Countries (CPOPC), outlined three strategies to improve global perceptions of palm oil as a sustainable product. These include leveraging platforms in member and consumer countries, collaborating with other vegetable oil producers, and optimizing forums in ASEAN, the UN, and other international organizations.
In 2023, Indonesia and Malaysia contributed 82.26% to global palm oil production. The Indonesian Ministry of Industry is pushing for a transformation in the palm oil industry, focusing on environmentally friendly crude palm oil production, optimizing biomass value, and ensuring sustainability and traceability. The government has issued regulations recognizing the diversity of palm oil derivatives and ensuring quality assurance. Key challenges include eco-friendly production technology, biomass value enhancement, and maintaining sustainability, all crucial for boosting the industry's competitiveness. The national strategy aims for a sustainable palm oil sector by 2045, emphasizing POME-free, low-carbon, and energy-efficient production methods. This comprehensive approach underpins Indonesia’s ambition to lead in sustainable palm oil production and achieve long-term environmental and economic goals.
