PUBLIKASI

According to a Madani Insight report (December 2022), the readiness of independent oil palm smallholders in Indonesia to face the European Union's (EU) deforestation-free due diligence regulations remains in the "less prepared" to "fairly prepared" category, with an index ranging from 40.4% to 50.5%. The main obstacles faced at the grassroots level include land legality issues—as the majority lack land ownership certificates and official environmental permits—and lengthy supply chains that complicate the traceability of palm oil fruit. Furthermore, most independent smallholders have not yet joined cooperatives and many still use uncertified seeds.

Furthermore, local governments' understanding of this new EU regulation is also considered minimal and has drawn diverse views among regional agencies. To bridge this gap, there are three fundamental, pressing needs for local governments: comprehensive mapping and data collection of independent smallholders, strengthening the capacity and institutionalization of farmers, and increasing the number and competence of State Civil Apparatus (ASN) serving as agricultural extension workers. These strategic steps, along with the acceleration of ISPO (Indonesian Sustainable Palm Oil) certification, are key to ensuring Indonesian palm oil remains competitive and meets global sustainable market standards.