2016-03-08

Insufficient justifications for Indonesian govt to support IPOP, claims association


JAKARTA (foresthints.news) - There are insufficient justifications, both legal and technical, for the Indonesian government to support Indonesian Palm Oil Pledge (IPOP), says a palm-industry association.

"IPOP is clearly not in line with Indonesia’s laws and regulations. In addition, IPOP has proven itself very difficult to implement on the ground from the technical perspective," Fadhil Hasan, the Executive Director of the Indonesian Palm Oil Association, told foresthints.news from Kuala Lumpur on Monday (Mar 7).

He said that IPOP’s implementation had resulted in the formation of a cartel, which was clearly in conflict with Indonesian law.

"Obviously, there is no room under Indonesian law for business practices that could result in a cartel. The functions of government must be applied, including the fostering of healthy competition in Indonesia," he said.

As regards the statement by Indonesia's Minister of the Environment and Forestry, Siti Nurbaya, that the government would conduct a detailed study of IPOP through bilateral cooperation with the US government, Fadhil said he did not understand why such a detailed study involving the US government was required. However, he said he believed that the minister was aware that IPOP was not in line with Indonesia law.

"I am confident that Minister Siti Nurbaya is aware and understands that the contents of IPOP contravene Indonesian law," he said.

Fadhil, who is also a member of the Indonesian Presidential Advisory Council on the Economy and Industry, said he believed the Indonesian government would not support IPOP as the justifications for giving such support were very weak.

"It is inconceivable that the Indonesian government will support IPOP, given the inadequate technical and legal reasons for doing so. It is also inconceivable that the Indonesian government would support the existence of a cartel in the national palm-oil industry," he said.