Antara Jakarta Globe 24 Oct 10;
Jakarta. Approaching the 100th anniversary of the palm oil industry in Indonesia, producers of the commodity find themselves wrestling with environmental campaigns accusing them of widespread deforestation, which has led to costly boycotts by major global buyers.
The palm oil industry provides direct employment for about 4.5 million people in the country, and last year generated $10.4 billion worth of exports, or 11 percent of Indonesia’s non-oil and gas exports.
But the industry has increasingly come under attack from environmental watchdogs that say crude palm oil producers are pillaging sensitive rain forests in the name of profit.
Now, after being repeatedly pummeled in the press by NGOs, the producers are preparing to fight back using a variety of tools, including a 100th anniversary celebration in Medan in March 2011, to come to the defense of the industry.
Derom Bangun, vice chairman of the Indonesian Palm Oil Board (DMSI), said efforts to combat the “negative campaign” targeting palm oil production needed to continue, and that even the government should be involved.
Derom said CPO would continue to be a major contributor of foreign exchange income for Indonesia, and that strategic diplomatic efforts could help respond to the “negative campaigns.”
Malaysia, the world’s biggest palm oil producer, has repeatedly invited Indonesia to set up a joint council based in Europe and the United States to fight “negative perceptions and unfounded allegations made against the palm oil industry,” according to Malaysian news agency Bernama.
Lim Keng Yaik, Malaysia’s former minister of energy, water and communications, said both countries should set aside funds for the council and appoint an articulate representative to attend all forums organized by NGOs campaigning against the palm oil industry.
“The person must be prepared to debate with [the NGOs] using well-researched facts and figures,” Lim said in a keynote address at the Second International Conference on the Future of Palm Oil Business, which was held in Kuala Lumpur this month.
“Malaysia and Indonesia, as the main palm oil producers, must come to the forefront to fight these threats,” he said.
“I am confident that we will win in the end because [the negative] campaigns are based on half-truths and sometimes outright lies.”
In March of this year, Indonesian and Malaysian CPO producers, which account for 85 percent of the world’s CPO production, signed a memorandum of understanding on responding to negative campaigns that could hinder the countries’ CPO industries.
“The cooperation is aimed at wiping out negative campaigns,” Indonesian Agriculture Minister Suswono said after the memorandum was signed by the Indonesian Palm Oil Producers Association (Gapki) and the Malaysian Palm Oil Association.
Antara
