H.E. Todung Mulya Lubis Ambassador to Norway. Republic of Indonesia

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1 H.E. Todung Mulya Lubis Ambassador to Norway Republic of Indonesia

2 Indonesia s Palm Oil Diplomacy Engaging trading partners and stakeholders to achieve the SDGs in the vegetable oil sector H.E. MR. TODUNG MULYA LUBIS AMBASSADOR OF THE REPUBLIC OF INDONESIA

3 Indonesia s Green Economy Model Indonesia s Green Economy Model The right economic design for sustainable development is the Green Economy. It is championed by Indonesia and the economic transition needed to deliver such an economy has already begun and is intended to extend into the next RPJMN Plan Period (Medium Term Development Plan: ). This is a perpetual commitment of the Government of Indonesia to preserve our forest for future generation. Palm oil is one of essential industries that play significant roles in order to reach the sustainable development goals in Indonesia.

4 Indonesia s Sustainable Palm Oil Industry The development of palm oil industry has been central to increased prosperity and societal advancement throughout Indonesia, from the rural communities that rely on employment from the plantations to the downstream industries that extend to city centers and exports zone. Palm oil that has been an essential part for home industries. Thus, the government of Indonesia commits to include the smallholders to take part to the industry, thus the government set up Plasma Smallholders (inti plasma) scheme which was first set up in 1987.

5 As a labor-intensive industry, millions of Indonesians rely on Palm Oil industry. The growth of palm oil industry have important roles in improving people s welfare and regional stability.

6 Palm Oil and SDGs Palm Oil plays significant role and delivers immense of contribution in achieving Indonesia's SDGs by 2030, i.e. reduction of poverty, social and economic progress in Indonesia. Indonesia considers that SDGs is not limited to trade off between social and economic progress and the environment, but rather the need to balance out these aims. Thus, insatiable demand of Palm Oil within the global vegetable oil sector will be managed carefully and sustainably well into the future.

7 A Commitment to Reach Sustainable Palm Industry Presidential Instruction 10/2011 concerning Postponement of Granting New Permits and Improving Forest Governance Presidential Instruction 11/2015 concerning the Enhancement for Forest and Land Fire Management Presidential Instruction 8/2015 concerning Postponement of Nee Permit and Improvement of Management of Primary Natural Forest and Peatland The Establishment of CPOPC (Council of Palm Oil Producing Countries) Presidential Regulation 42/2016 concerning The Establishment Of The Council Of Palm Oil Producing Countries Palm Oil Rejuvenation Scheme for Smallholders On Going Presidential Instruction 6/2013 concerning Suspension New Licenses and Improving Forest Governance of Primary Forest and Peatland Presidential Regulation No. 61 of 2015 regarding the Accumulation and Usage of the Palm Oil Plantation Fund Indonesia Sustainable Palm Oil (ISPO) Certification Ministry of Agriculture Regulation 11/2015 Presidential Regulation 1/2016 concerning the Establishment Peat Restoration Agency One Map Policy Presidential Regulation 9/2016 Draft(s) of Regulation: 1. Presidential Regulation concerning ISPO 2. Presidential Instruction concerning Postponement and Evaluation of Licencing for Palm Oil Plantations

8 Moratorium on and Evaluation of Palm-Oil Plantations in Forestry Areas With the ultimate aim of preserving the environment and reducing greenhousegas emissions, the President of Indonesia has officially ordered a moratorium on the establishment of new palm-oil plantations within forestry areas through the issuance of Presidential Instruction No. 8 of 2018 on the Moratorium on and Evaluation of the Licensing of Palm-Oil Plantations and Productivity Increases for Palm-Oil Plantations. In essence, Presidential Instruction 8/2018 requires various governmental apparatuses to address the following areas: Moratorium on the establishment of new palm-oil plantations within forestry areas; Reconversion of palm-oil plantations; Moratorium on new investment applications; Data verifications and evaluations; The Indonesian Sustainable Palm Oil ( ISPO ) standard; Community plantations; and Exhaustion of legal remedy.

9 The Protection of Peatland Area The establishment of Peatland Restoration Agency (or Badan Restorasi Gambut/BRG) is a non-structural institution directly under and responsible to the President of the Republic of Indonesia. This agency was established on 6 January 2016 based on Presidential Regulation No. 1 Year In 2011, the government of the Republic of Indonesia under Soesilo Bambang Yudhoyono issued Peat Moratorium in protecting peatland area against conversion into palm plantation. In 2017, Indonesian President Joko Widodo has approved a two-year extension to a moratorium on issuing new licenses to use land designated as primary forest and peatland.

10 Peatland Restoration and Protection The Ministry of Environment and Forestry along with the agencies have commited to reduce the forest fire (red spots) by introducing Five Action Plans mainly concern the protection of peatland in Indonesia, which are: Providing economic incentives and disincentives with smallholders, villages and local communities, in which fire prone-village(s) will be eligible to receive IDR300 million (USD21000) as incentive to protect the peatland Calls for empowering villagers and forest communities to prevent and tackle fires, while the third focuses on more stringent enforcement of existing laws and regulations on forest concession Improving water management in peat forests, exploring weather modification techniques Developing wind farms make up the infrastructure-oriented Calls for upgrading fire monitoring systems, setting up a crisis centre and early response system, and distributing fire-extinguishing equipment Current progress: The progress of peatland restoration and protection have been impresive as in 2015 the forest fire reached its peak with the commitment of the government by supports of its ministeries, stakeholders, has gradually restored degraded peatland.

11 Terima Kasih Tusen Takk Thank You The Embassy of the Republic of Indonesia in Oslo Let us know if we can be of any more assistance.