17/10/2011 (The Star) - Indonesia needs to clean up its act and provide up-to-date statistics on its palm oil sector given its status as the world’s largest crude palm oil (CPO) producer, according to an industry player.

Malaysia, via the Malaysian Palm Oil Board (MPOB), had done a good job in compiling and diligently releasing its detailed monthly palm oil statistics particularly on important indicators like production, exports and imports, he said on the sidelines of the Palm Oil Refiners of Malaysia (Poram) 2011 Annual Forum.

“The international market players want Indonesia to emulate Malaysia in terms of its palm oil data collection. Malaysia may have fallen to be the world’s second largest CPO producer since 2007 but it is still the world’s largest exporter of CPO products,” he told StarBiz.

Indonesia Palm Oil Association (GAPKI) executive director Mohamad Fadhli Hassan in defending Indonesia said the republic had a massive area of planted oil palm, scattered over many provinces.

“With the country being divided into autonomous regions from the central government, it is more difficult for data collection, particularly from the smallholders’ holdings,” he said.

However, Fadhli said Indonesia was currently making progress in terms of compiling its CPO and CPO products exports statistics, and also its CPO export duty policy.

Of the total 8 million ha oil palm area in the republic, GAPKI members only represent about 2.7 million ha.

He said the Indonesian government was seriously looking at transforming the palm oil sector towards sustainability with the focus on enforcing the mandatory Indonesia Sustainable Palm Oil (ISPO) standards to all its palm oil growers.

While GAPKI may have exited from the Roundtable on Sustainable Palm Oil (RSPO) grouping, Fadhli said: “However, many Indonesian oil palm plantation companies are still supporting the voluntary-basis RSPO certification.

“It is just that Indonesian planters now have to focus on complying with the mandatory ISPO certification which has a deadline by 2014.”

Fadhli said GAPKI would not be attending the upcoming RSPO Annual Roundtable Meeting in Sabah next month but “Indonesian plantation companies, which are members of RSPO, will still participate, hence representing the interests of Indonesian growers.”

It is believed that the main difference between RSPO and ISPO is the price for certification. The RSPO certification is priced at US$20 to US$25 per ha, while GAPKI is said to be lobbying the Indonesian government for ISPO certification at a rate cheaper than the RSPO.

Of the 435 GAPKI members, only 16 plantation companies have RSPO certification.