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SUSTAINABLE PRODUCTION OF OIL PALM : Complicated and Costly Yet Necessary



Derom Bangun

ABSTRACT 

            Palm oil is the fasted growing vegetable oil in the world. The high production growth rate has been driven by the rising demand. The sizes of oil palm plantation in many countries notably Malaysia, Indonesia, Colombia, Thailand, Papua New Guinea and Nigeria are rapidly expanding.

            At the same time, society in general is getting more environmentally aware. For instance, smoking seats are no longer available in aeroplanes. Global trend is to implement sustainable development with emphasis on environment. For businnes, this means additional responbility in the domain of environment and society. Financial viability alone is no longer sifficient. Palm oil industry is facing the challenges brought about by the sustainability trend. The pressure and the urgency are obvious and in many cases expressed in such a way that seems palm oil producers are careless or irresponsible. In a worse situation, operators of oil palm plantations are accused of wrong doing against environment. This situation creates fear.
            This paper will discuss why sustainability is demanded by the world society, how sustainable palm oil is defined, what is RSPO’s principle and criteria and how companies are supposed to implement the principles and criteria. The impact to the cost of production will also be covered. Having a clear idea on sustaible production any executive of oil palm plantation can continue working without fear.

Key : Elaeis guineensis, environment

By : Executive Chairman of Indonesian Palm Oil Producers Association, Medan, Indonesia