ISPO SHOULED BE MORE SOCIALIZED

ISPO ( Indonesia Suistainable Palm Oil ) should be more organized to stakeholders. Many parties do not yet have a correct understanding of ISPO that it may create problems. Derom Bangun, Chairman of Indonesia Palm Oil Board, said.

There are those who related ISPO to hak ulayat ( traditional land rights ) so if company  has received ISPO certificate, it is required to set aside part of its land for traditional land tenure.

And, there are those who believe that companies who receive ISPO certificate must participate in funding concervation af wild animals. While, in fact, the core of ISPO is how and oil palm plantation company, from land clearing up to factory opening, is able to maintain palm oil sustainability.

Socialization is very important as RSPO ( Roundtable on Sustainable Palm Oil ) formed in 2004 was just accepted in 2012. ISPO is not directly acceptable internationally, as it is governed by the laws prevailing in Indonesia, while sustainability principle is applicable universally.

In fact, the European market is in high need of CPO for biodiesel production. So far, they produced biodiesel from canola oil which prise is more expensive. There are certain regulations that restrict entrance of CPO to be used as raw material for biodiesel. If these regulation can be handled, Derom is confident that Europe will replace canola oil with CPO which price is must cheaper.

There is a requirement for biodiesel raw material in Europe if CPO mills have been equipped with methane capture tool peoven by ISCC ( International Sustainability and Carbon Certificate ) from Germany.

“ Methane capture is very expensive so only big companies who are able to install it. And, cost of ISCC  certification is also quite expensive “, he said.

But, now there has been change in European Union. CPO from companies, who receive RSPO certification, is allowed to be ised as raw material for biodiesel. “ I hoped that this opportunity can be used by Indonesian companies that have received RSPO certification to cultivate the European market”, he said.

Data of RSPO shows that number of RSPO-certified CPO ( CSPO ) from Indonesia is 3,826,298 ton or 46.8% of total CSPO globally.

Demand for biodiesel in Europe is very high because it is committed to reduce oil-based fuels. Biodiesel demand could reach 6 million ton a year, and Europe is higly ambitious to replace fossil fuel with fuel produced from renewable sources.

United States is not as progressive as Europe. The target of time and volume of use in Europe are aready clear, but the United States is still in preparation stage. They decided that raw materials to produce biodiesel are required to reduce emission by 20% at the minimum.

“ The reason is that EPA ( Environtmental Protection Agency ) has made an analysis that emission reduction by CPO is only 16% so CPO cannot be used as raw material for making biodiesel “, he said.

Indonesia has submitted an objection, but until now there has been no response from EPA. If it is accepted, Derom is confident that CPO will be accepted for use as raw material for making biodiesel in Europe.

“ We already explained that by 2020, approximately 60% of CPO mills will have installed methane capture rools so that emission reduction can be more that 20% “, he said (E )

Business News - February 27,2013