RI, Malaysia launch joint CPO campaign in EU

Antara News, Friday, December 17, 2010

Brussels (ANTARA News) - Indonesia and Malaysia reached agreement to cooperate in the development of oil palm as a renewable source of energy.

The agreement was disclosed by Malaysian Plantation and Commodity Industries Tan Sri Bernard Dompok and Indonesian Deputy Agricultural Minister DR Bayu Krisnamurthi after a meeting with the European Commission in Brussels Tuesday afternoon.

The Joint Statement of the two countries of the same racial stock was made following discussions with Jane Potocnik of the European Union`s environmental commission, Connie Hedegaar of the Climate Action Commission, Guntter Oettinger of the Energy Commission and Development Committee Nirj Deva and chairman the Paolo de Castro plant development committee.

After holding the meetings, the two ministers held a dinner with members of the European Parliament and the host Martin Callanan also attended by Indonesian ambassador to Belgium, Lusemburg and the European Union Arif Havas Oegroseno.

DR Bayu Krisnamurthi said that the issues during the discussions included the directive decision of 2009/28/EC on the promotion of the use of renewable energy sources, and sustainable palm oil production.

In addition, the problem of indirect land use change (ILUC), biofuel certification, revision of renewable energy, and High Biodiversity Grassland.

For Indonesia and Malaysia the palm oil industry is very important in economic development absorbing more than eight million workers in the two countries.

Unfortunately, the palm oil industry is opposed by various public organizations engaged in the sector of environment, and many of them had no proper understanding on the benefits of oil palm for the people.

DR Bayu Krisnamurthi said the benefits of palm oil is ten times as big as the oil produced by other legumes.

The two countries agreed to develop renewable energy from palm oil with its many benefits, both for Indonesia and Malaysia, oil palm is a very important commodity.

Indonesia and Malaysia are the world`s biggest oil palm suppliers including for Europe reaching 90 pct. While 42 pct of the production in Indonesia came from the small farmers, and in Malaysia 40 pct.

The palm oil industry has managed to reduce poverty, create employment and raise the income of the people.

The Indonesian government has a great interest in the sustainable production of palm oil which in 2010 reached 21 million tons of CPO from 7.5 million hectares of oil palm estates.

In the meantime, total world CPO production reached 44.3 million tons in 2010.

There are 1.5 million small farmers engaged in the CPO industry, and many of them succeeded in raising themselves from poverty by way of oil palm.

Prior to 2000 the average income of oil palm farmers reached 1000 to 1100 euro per year, and only 37 pct produced only 600 to 700 euro per year.

In 2009 the income of the farmers doubled to 2000 euro per year, while farmers who previously have an inccome of less than 700 euro were reduced to 16 pct.

The energy produced in one hectare of oil palm land reached 3.74 tons per year with energy produced nine times as much, while soyabean only produced 0.38 tons and sun flower 0.48 tons.

The outcome of a study in Indonesia, according to chairman of the Indonesian Palm Oil Council DR Rosedana Suharto showed a default value of CPO reaching 60 pct. Therefore Indonesia felt it is necessary to hold a dialog between the European Union and Indonesia as the world`s biggest CPO producer.

The European Union set the the standard default value of CPO at 19 pct, while 35 pct is needed for biofuel. The European Union said Renewable Energy Directive of the European Union (EU-RED) is still open with inputs from various countries to enable them to produce the right policy beneficial for everyone.