The document discusses problems with the palm oil market including traps between cooking oil and biofuel due to a lack of separation, sustainability policy pressures, and overproduction leading to expanded palm oil plantations. It also presents enabling conditions such as jurisdiction approaches for sustainable palm oil policies, multistakeholder commitments to ensure sustainability in palm oil value chains, and allocating palm oil funds to strengthen governance at the local level. The goal is to separately source food and energy in a sustainable way along the entire value chain.

1. Problem Statement:
1. Market Traps: Cooking Oil Vs Biofuel.
2. One Source: absence of separation.
3. Market Pressure: Sustainability Policies.
4. Overproduction: palm oil plantation area (inc.
expansion) and market demand.
5. CPO Fund: energy-oriented and weak in supporting
the governance of oil palm plantations
(smallholders).
Enabling Condition:
1. Jurisdiction approach for sustainable palm oil policies
dan practices: mandatory and voluntary: LTKL,
RSPO, Terpercaya, etc.
2. Commitment buyer and multistakeholders forum to
ensure the sustainable Palm oil value chain on
district level: MSF on LTKL District members: PUKL,
PUPL, SMB, Siak Hijau, Sekretariat Bersama, etc
3. Allocation CPO Fund (Tax-DBH) to accelerate of
palm oil governance on district level: RAD KSB, etc
4. Market contribute for strengthening and supporting
5. Separate sources for food and energy with
sustainable on value chain.
Desriko Malayu Putra | Senior Policy Coordinator
High Level Policy Dialogue: Palm Oil and Environment Sustainability
Facing Food, Climate and Energy Crisis, Jakarta on August 30th, 2022
Palm Oil Governance and Distribution
Subsidy: 7 Trillion (2022)* Incentive: 51 Trillion (2021)*
* the number must be confirmed with government data official
Replanting: 5 Trillion (2021)*