"Saksikan tayangan kami Official Youtube IDX Channel di Program Market Review, Selasa (21/01/2025) dengan tema Indonesia Menangkan Sengketa Sawit di WTO".
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00:00Indonesia has won against the World Trade Organization, the WTO, on the issue of palm oil.
00:13Thank you for joining us.
00:15Indonesia has won against the World Trade Organization, the WTO, on the issue of palm oil.
00:21The decision shows that the discrimination against Indonesian palm oil is proven to be true.
00:31The World Trade Organization decided to ignore the Indonesian government's challenge
00:36on the discrimination of palm oil products that are being applied in Europe.
00:40This is reflected in the report of the WTO panel decision
00:44which ensures Indonesia's victory in the international trade dispute regarding palm oil products.
00:49In the report, the WTO's decision-making body stated that
00:53the European Union has given a discriminatory action against biofuel palm oil
00:58and has given products such as sunflower oil from Europe.
01:01Erlanger Tartopon's economic co-chair explained that this victory is proof
01:06that Indonesian commodity products are not like those accused by many parties in Europe.
01:10Erlanger is confident that the WTO's decision will also have an impact
01:14on the anti-deforestation policy of the European Union that will take place next year.
01:18This victory is proof that Indonesia can fight and we can win.
01:27Yesterday, we fought for palm oil in RIDD, and we won.
01:33Therefore, the policy of biofuel palm oil should be accepted by the world.
01:41Not only biofuel palm oil based on rapeseed, soybean, and others,
01:46but also those based on CPO.
01:50This will also have an impact on their policy of EUDR.
01:56In his decision, the WTO also found that the European Union failed to assess data
02:01in determining the category of biofuel palm oil as a high-risk product based on land functions.
02:07As a result, this policy is considered to be inconsistent with international regulations
02:11because it does not consider facts objectively.
02:14From Jakarta, Rajopatmo, IDX Channel.
02:17Indonesia has won the palm oil dispute in the WTO.
02:23For example, to solve our interesting topic today, Indonesia has won the palm oil dispute in the WTO.
02:27It has been connected through a video conference with Prof. Budi Mulyanto,
02:31Head of the IPB University,
02:34or IPB University,
02:36Rector of Nusa Bangsa University,
02:38and there is Mr. Sabarudin,
02:40Chairman of the SPKS.
02:44How are you?
02:45How are you, Prof. Budi and Mr. Sabarudin?
02:48Alhamdulillah, I am fine.
02:49Good afternoon, Mr. Sabarudin.
02:51Assalamualaikum.
02:53Good afternoon, Prof. Budi.
02:56Thank you for joining us in this market review.
02:59I will go to Prof. Budi first.
03:01Prof., Indonesia has won the palm oil dispute against the European Union in the WTO.
03:06The WTO decision later showed that discrimination against Indonesian palm oil was proven.
03:13What is your take on this, Prof?
03:17I think what the WTO has said shows that the WTO is neutral.
03:27And it is true that Indonesian palm oil products have been treated unfairly
03:32in trade between Indonesia and the European Union.
03:36However, what we need to understand is that this is specifically for biodiesel.
03:42There are still many palm oil products that have the opportunity to be discriminated against.
03:47So we have to remain vigilant.
03:49Keep improving.
03:51Keep developing, improving the management and keep fighting
03:55to convince the global public that palm oil products are special.
04:01Managed well according to the standards required by the global community.
04:07That's what I think.
04:08So this is good news, but there is still a lot of work to be done.
04:13Yes.
04:14Because discrimination against palm oil products is still happening in the European Union.
04:19I will go to Prof. Barudin.
04:20What is your take on this, Prof. Barudin?
04:26I think we all know that Indonesia has won the WTO case.
04:32But as Prof. Budi said, this is specifically for biodiesel.
04:36And according to us, this is not fair to enlarge the supply from Indonesia to the European Union.
04:53If our palm oil products are only about 4 million tons in total.
04:58If biodiesel, according to the data from Gatki, is only about 60,000 tons to export biodiesel to Indonesia.
05:09But our hope, I think this is especially for farmers.
05:13We hope with this win, we hope that the farmers' products can be absorbed well by the industry.
05:21If there is an increase, then our priority is how the palm oil products are prioritized to enter the industry or the European market.
05:35What is interesting, Prof. Barudin and Prof. Budi, this is related to a statement that has not yet been delivered by the Minister of Economic Coordination, Erlang Kahartar.
05:45Or will the European Union implement the decision from the WTO?
05:50What kind of advocacy do you think must be done by the government in order for the European Union to implement the recommendation or decision that has been delivered by the WTO?
06:02Yes, it is true, Mr. Sabar, that the European Union does not accept it just like that.
06:12Because they have their own specific rules related to deforestation.
06:17This is what I said is important, we must be careful and respond appropriately.
06:25This has the potential as a barrier in the trade of our palm oil products with the European Union.
06:33That is the EUDR, European Union Deforestation Free.
06:38They have that rule, even though the implementation has been postponed for a year, but it has the potential as a barrier.
06:46So we need to say that we have to be self-reliant and also we have to give a realistic understanding of our condition.
07:01This challenge is more severe if other countries implement the EUDR system.
07:09So we have to continuously improve our governance system and also our communication system with the global community.
07:17We have to actively communicate in global communication forums such as Indonesia, European Union, Comprehensive Economic Partnership Agreement,
07:28AIUCPA, AIUCPA, something like that.
07:36Okay, it means that the EUDR is a momentum for the Indonesian palm oil ecosystem to improve itself
07:47so that the sustainability is fulfilled and also improve the way to socialize or communicate with the European Union
07:55so that all kinds of concerns are solved.
08:01Okay, I will go to Mr. Sabarudin.
08:04Mr. Sabarudin, what should be done by the government or what kind of advocacy should be done by the government
08:11so that the decision of the WTO or these recommendations can be implemented by the European Union and what is the next challenge in your opinion?
08:22I think the consent of the European government or the European community towards our products
08:30is actually how Indonesia can provide sustainable oil products and also free of deforestation, I think.
08:38As Mr. Prof. Budi has said, besides the other policies of the European Union, there is a new policy that has been postponed for a year regarding the EUDR.
08:52But for us, I think what needs to be done by the government and also us from the Oil Farmers Association
09:04is to build and ensure that the oil farmers must also practice in accordance with the global standards.
09:12For example, we must then meet the standards set.
09:16In Indonesia, we have Indonesia Sustainable Farm Oil, I think that needs to be accelerated for certification in the oil farmers.
09:26Because if we can certify with ISPO for our oil farmers, I think we can overcome the issue of the improvement of management standards.
09:35For example, we can get traceability in oil farmers.
09:39Then, we can also improve the productivity of oil farmers with good management.
09:48For the PR, maybe from the supply for fertilizer, it must be facilitated by the government for the access of the farmers.
09:58Then, I think with our ability as the largest oil producer, I think for the issue of sustainability,
10:13ensuring that oil farmers can produce according to the standards, we should be able to do that.
10:20And in the SPK, for example, in the oil farmers, we can actually then meet the regulations or meet the standards that are desired.
10:33Many oil farmers now have RSPO certification, for example, Rentable Sustainable Farm Oil,
10:41which is one of the conditions for our oil producers to enter Europe.
10:53And more or less, there are hundreds of corporations that already have certification.
11:01That's what I think.
11:03Mr. Sabarudin, since Mr. Budi and you have discussed about the Indonesia-EU Comprehensive Economic Partnership Agreement or IEU-CEPA.
11:13Until now, it hasn't been finalized yet.
11:16And interestingly, President Perbowo Subianto also assigned the deadline to immediately finalize it in this semester.
11:24Are you optimistic that it will be finalized or reached in the first semester of 2025, Mr. Sabarudin?
11:35And what are the challenges? Will the agreement or the negotiations be completed immediately?
11:42Who?
11:43Mr. Sabarudin, please.
11:45Yes, Mr. Sabarudin.
11:47I think that this win is always compared to the EU.
11:57Regarding the negotiations, I think there has been a team in the government for a long time.
12:03Our challenge is actually about what we bring to the EU when we do the brooding or comparison.
12:14What we have to convey is the effort to improve.
12:19What improvements have been done by the government so that we sit at the same table and have a strong position.
12:31What has to be done, whether we want it or not, is beside the lobby and the negotiations that are being done by the government.
12:37On the other hand, I think that together we have to make sure that Indonesian oil products can be sustainable,
12:47as desired by the people of the EU or the government of the EU.
12:53We have to answer the question of deforestation, then the question of sustainability,
12:59and one of the points from the European Union is how the oil investment has an impact on the community,
13:10the traditional community, then the oil farmers.
13:14Or the oil farmers can fairly receive the fair price given by the industry,
13:22the oil farmers and the villagers.
13:24I think this is a strong model for the negotiators or those formed by the President.
13:38And we see that President Prabowo is good enough to prioritize oil in his policy.
13:48Okay, there are priorities that need to be addressed in the next meeting.
13:54Okay, Mr. Sabarin and Mr. Budi, we will take a short break.
13:58We will continue in the next segment.
14:01We will be right back.
14:18Thank you for joining us.
14:21Before I continue the discussion with Mr. Budi and Mr. Sabarin,
14:25we will show you some data that we compiled from the BPS and also the research from the IDX channel team,
14:32including the Kinerja Export CPO and its decline with US$1 billion in November 2024.
14:39It is at US$2.09 billion.
14:42Then in December 2024, the figure fell by 9.34% at US$1.89 billion.
14:50And the next one is related to the area of the world's certified oil palm plantation,
14:56as you can see on the television screen.
14:59The next one is related to the area of the world's certified oil palm plantation.
15:11For 2021, it is 3.35 million hectares.
15:15In 2008, it was 0.1 million hectares.
15:18This is the area of the world's certified oil palm plantation.
15:20The next one is the area of the world's certified oil palm plantation.
15:24In 2008, it was 0.8 million tons.
15:26In 2021, it was 23.1 million tons.
15:29I will continue the discussion with Prof. Budi.
15:32Prof. Budi talked about the national oil palm productivity in the past few years,
15:36and then experienced a stagnation.
15:38This is one of the implications of the slow implementation of re-planting on the land of oil palm farmers.
15:46Then, what should be done related to the strategy to boost the national oil palm productivity
15:53and the challenges in increasing productivity?
15:55What do you think?
15:57And how much intensification should be prioritized?
16:03Since intensification is a concern of the European Union,
16:09which has a strong correlation with deforestation.
16:15What do you think about this, Prof?
16:18Yes, I think so.
16:20We have to boost the oil palm productivity.
16:25Why? Oil palm is a strategic product,
16:28as what President Mrabowo said,
16:30that we have to develop this oil palm for Indonesia's success.
16:38How do we do that?
16:40First, we have to do hulunisasi.
16:44Hulunisasi means strengthening the oil palm industry itself.
16:50What should be done?
16:52First, of course, since we have been cultivating oil palm for a long time,
17:00many of our old oil palms need rejuvenation.
17:04In my opinion, the rejuvenation of oil palms is strategic.
17:07Oil palm production cannot be handled as it is today.
17:10Oil palm rejuvenation is less than 10% today.
17:16In my opinion, we need to improve that.
17:20The oil palm rejuvenation process needs to be improved.
17:25How to do that?
17:27I think we have to have a lot of discussions with our colleagues in the study center.
17:31Second, we have to strengthen the land status.
17:36The land status is important,
17:39because there are often accusations that oil palms cause deforestation.
17:45This is not reasonable.
17:47Why?
17:49Oil palms are grown in a land that does not cut down forests.
17:54Deforestation has happened in Indonesia,
17:57intensively, still structured,
18:01at the beginning of the new era,
18:03from 1970s to 1990s.
18:06There are a lot of unemployed land.
18:08According to the Ministry of Agriculture and Forestry,
18:12there are 31.8 million unemployed land
18:18claimed in forested areas.
18:22There are millions of people.
18:24If the legalization process can be carried out,
18:29I think it will help in improving production
18:34as well as solving global issues related to deforestation.
18:40So, oil palm development has nothing to do with deforestation.
18:44What Mr. Prabowo said is true.
18:47Don't be afraid of accusations of deforestation,
18:51because there is no such thing.
18:53There are 31.8 million unemployed land,
18:58which is a result of deforestation in the past.
19:01And most importantly,
19:04it is the land of the people
19:07who, due to the process of cutting down forested areas,
19:12are not careful or do not fully follow the existing legislation.
19:18That's what I think.
19:20Next, improvement of the ecosystem.
19:23What Mr. Sabar said is true.
19:25We need to improve the land management,
19:33so that the productivity of the unit can increase.
19:37Next, the management of TBS management
19:42to the factory must be good.
19:45Why?
19:47TBS has an age.
19:49If it is not processed immediately, there is a quality degradation.
19:52This is important.
19:54And of course, we need to do this step by step.
20:01Next, we need to understand the expansion.
20:04The expansion of oil palm plantations is very vital.
20:07Moreover, we will talk about the expansion of biofuel.
20:12The productivity of biofuel.
20:14Whether we want it or not, it must be expanded.
20:17Otherwise, it will interfere with the needs of oil palm products
20:22in terms of food consumption and export.
20:25Is that right, Sir?
20:27I will go to Mr. Sabarudin.
20:29I will ask the same question.
20:31I will tell you about the strengthening or strategy
20:36to increase the productivity of oil palm plantations in Indonesia.
20:41One of the concerns that Prof. Budil has mentioned
20:44is about youth.
20:46It is said that it is slow.
20:48But according to the SPK itself,
20:49what is the reason for the expansion of oil palm plantations in Indonesia
20:54to become slow?
20:56Mr. Sabarudin, please.
21:03I think that the current strategy of the government
21:08is to increase productivity
21:10through the program of oil palm plantations.
21:13According to the data from Dirjen Perkebunan,
21:15in 2024, only 26,000 oil palm plantations
21:19can be reached,
21:21out of 180,000 that are targeted.
21:25So, only around 20% to 21%.
21:28The challenge, I think, is in the farmers
21:31because people's oil palm plantations are specialized for oil palm farmers.
21:35Our challenge in oil palm farmers,
21:37I think we have talked about it before,
21:40about the access to oil palm plantations,
21:42it must be facilitated by the oil palm farmers.
21:46First, about the requirements,
21:48it must be taken into account by the government.
21:51Then, also about the legality.
21:53Are the requirements too complex or what?
21:56Yes, now there are many requirements.
21:59For example, with the current regulations,
22:04oil palm farmers who already have land certificates,
22:07who already have SHM,
22:09must have recommendations, for example,
22:10from ATRBPN.
22:12This is quite complicated, I think.
22:14These kinds of policies need to be,
22:17I think in the future, if we want to speed up the PSR,
22:20it needs to be removed.
22:23Including the letter,
22:27there must be a letter from the KLHK,
22:30or the KLHK, the Committee on Environmental Protection.
22:34In the past, it was difficult.
22:36And also,
22:37about the funding,
22:39now I think with 60 million,
22:41it's enough.
22:43We are fair and we appreciate the government
22:46for raising the oil palm plantation fund.
22:50And also, I think,
22:53the PSR program,
22:55it's okay to do it,
22:57but to increase the productivity of the oil palm farmers,
23:00it's not just about the PSR.
23:02But from around 6.7 million oil palm lands,
23:07I think a lot of oil palm lands
23:11don't need the PSR,
23:13but they need access to fertilizer, for example.
23:16The government must then,
23:19not only focus on the PSR,
23:23but the supply and demand programs
23:27need to be facilitated for the oil palm farmers.
23:29Now, the supply and demand for the government programs
23:34is quite low.
23:35Meanwhile, the oil palm farmers need fertilizer,
23:40and infrastructure improvements in the villages.
23:44And this will definitely contribute
23:47to improving our national productivity,
23:51especially in the oil palm farmers.
23:53Now, if we calculate,
23:55for the oil palm farmers,
23:57it's actually around 17 million tons,
24:00with 2.5 per hectare per year.
24:04The potential of the oil palm farmers,
24:07if it can be increased,
24:09it can be around 30 million tons,
24:13if the productivity is good,
24:15and this can be the source of biofuels,
24:18or BM40,
24:20which is currently the government program.
24:23And our hope is that the government is quite focused
24:27on improving the increase in productivity.
24:30We don't need to increase the productivity
24:34for the biofuels,
24:36to open up new fields,
24:38like what the government says.
24:40Because we have the potential
24:42to increase the productivity in the oil palm farmers,
24:45or in the companies.
24:47Mr. Sabarudin,
24:49we still have a lot to discuss,
24:51but the time is limited.
24:53There are a lot of strategies that need to be done.
24:55We need support from various parties
24:56so that the challenges in the future,
24:59related to the image of Indonesia's oil palm in the European Union,
25:02can be improved,
25:04and various things can be done from home
25:07to increase productivity,
25:09and also address various issues
25:12about Indonesia's oil palm in the global.
25:14Mr. Budi, or Prof. Budi,
25:16and also Mr. Sabarudin,
25:18thank you for joining us.
25:20I wish you all the best.
25:23It's been an hour.
25:25We are with you in Market Review,
25:27bringing you the latest information
25:29only on AIDAX channel,
25:31transporting comprehensive investment reference
25:33because the future must move forward.
25:35I am Investor Saham, Iqyar Dianududu.
25:37Thank you. See you.