Background.

The existence of solid data is one of the essential needs for the sustainability of an industry. It is the main foundation to achieve sustainable industrial governance. The palm oil business is Indonesia's flagship industry in the plantation sector. The industry is predicted to be one of the pillars of the country's economy, in fact there are still many records that must be resolved.

Indonesia's biggest challenge in the palm oil sector is governance, whether it is compliance with land regulations, the environment, social impacts, or deforestation. These facts affect the image of palm oil internationally. In addition, in September 2022 the European market has passed the European Due Diligence Regulation. This regulation will ensure that commodities and products circulating in the European Union are legal and sustainable. Palm oil is one of the six commodities affected by the regulation.

This situation shows that market acceptance is increasingly selective and pays great attention to the origin of the raw materials of the products it consumes. To know the traceability of a product to its source of origin, it is necessary to have traceability and transparency in the industrial supply chain. This is important in an effort to support the strengthening of a productive, efficient and competitive industry.

The supply chain in the palm oil industry is very complex, covering large-scale producers down to the most local level, namely independent smallholders. Of course, the supply chain schemes of the independent palm oil industry and the corporate palm oil industry have different supply chain flow patterns. This diversity should be a concern for all parties, especially policy makers and business actors. So that each supply chain flow continues to maintain and pay attention to its sustainability aspects.

The development of the Indonesian palm oil industry shows the need for improved governance, especially in the traceability of the supply chain from upstream to downstream. Traceability is the main benchmark for the industry's supply chain transformation efforts. This is a concern to improve the supply chain data of agribusiness commodities, especially oil palm. Therefore, Auriga Nusantara made it the theme of the virtual discussion Ngopini Sawit #11: Structuring a Traceability System for the Sustainable Palm Oil Industry.

Resource Persons and Presentation Themes

• Direktur Pangan dan Pertanian, Bappenas: The Government's Strategy in Building Traceability of Palm Oil Commodities
• Deputi Bidang Koordinasi Pangan dan Agribisnis, Kemenko Perekonomian: Strengthening the Upstream and Downstream Sectors of the National Palm Oil Industry
• Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI): Industry Dynamics in Realizing Sustainabilty Traceability
• RSPO Indonesia: Ensuring Traceability of the Sustainable Palm Oil Industry through Certification
• SPOS Indonesia: A Supply Chain Scheme for Smallholder Farmers

Time and Location

Day/Date: Tuesday, December 13th, 2022
Time : 13.30 - 15.30 WIB
Location: Youtube Auriga Nusantara

Participants

This activity will invite participants to represent the parties of palm oil,
ministries/state institutions, companies/associations, civil society, academics, media and
oil palm planters.