Indonesia and Malaysia Team Up Against Palm Oil Critics
09 March 2010
Indonesia and Malaysian palm oil producers have agreed to jointly
tackle challenging environmental and labor issues which threaten to
hinder the development of the industry in both countries.
Producers
have lately come under attack on a number of fronts. Environmentalists
complain the growth of palm oil plantations contributes to
deforestation, threatens wildlife and increases greenhouse gas
emissions, while there has also been criticism of the industry's use of
underage labor.
Late on Friday, Indonesia and Malaysian signed
a memorandum of understanding in which they agreed to collaborate and
improve communication between producers in both countries to counter
the impact of critics of the industry and also to improve
sustainability.
"Through collaboration, hopefully we can face
the negative campaign [against the industry] and the accusations of
environmental damage," said Indonesia's Agriculture Minister Suswono,
after the signing ceremony.
The world's top palm oil producers, Indonesia and Malaysia together account for about 85 percent of global output.
Suswono
cited Unilever's suspension last year of palm oil purchases from PT
Smart, after a report from Greenpeace which claimed the company did not
use sustainable production processes, as an example of the type of
situation where the industry would benefit from enhanced cooperation.
"It's
not fair," he said. "In the future, if there are any accusations, we
will immediately form an independent team to inspect the case. So that
we, palm oil producers, will have a stronger bargaining position than
the buyer."
As part of the coordination efforts, six palm oil
industry associations from Indonesia and Malaysia on Friday signed a
memorandum of collaboration that will, among other things, establish a
steering committee to advise the Roundtable on Sustainable Palm Oil, an
organization that issues certificates to palm oil producers that comply
with certain environmental standards. A number of major palm oil buyers
do not buy from companies that lack the certification.
Under
the memorandum of collaboration, producers are also encouraged to
develop sustainable plantation practices, including restoring land
after it has been used for palm oil plantations.
Malaysian
Plantation Industries and Commodities Minister Tan Sri Bernard Giluk
Dompok said environmental issues were being increasingly used to attack
the palm oil industrys.
"There is no reason for palm oil
producers in the two countries to not to cooperate and discuss issues
of common interest," he said.
Dato' Mamat Salleh, the
Malaysian Palm Oil Association's chief executive, said the industry
would face increased environmental challenges in the future.
One
hurdle for the water-intensive industry was the development of
so-called water footprints, a measure used to show how much water is
used in the production of palm oil, he said.
"There will be
new environmental issues, which could make palm oil plantations become
more controversial in the future," Dato said. "We need fair scientific
research so that we can also improve our plantations," he said.
Indonesian
Palm Oil Producers Association (Gapki) chairman Joefly J Bachroeny said
the cooperation efforts were also aimed at helping Indonesian and
Malaysian palm oil producers to improve sustainability.
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