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UK Due Diligence Consultation: Indonesia Responds

This week, the Indonesian Palm Oil Association (GAPKI) submitted a formal response to the UK Government’s consultation on the planned Due Diligence regulation.

In the official submission, the Indonesian palm oil community raises core principles that the UK Government must consider when drafting its Due Diligence regulation. Considering the importance of the palm oil community to Indonesia, and the wider ASEAN, the UK should firstly ensure no discrimination against Indonesian palm oil; the Indonesian Sustainable Palm Oil (ISPO) standard should be recognised; and the UK’s Due Diligence regulation should not infringe Indonesia’s sovereignty. These are some of the key points set out by the Indonesian Palm Oil Association.

We must not forget why this is important. Palm oil is essential for the wellbeing of the Indonesian economy and for the welfare of millions of people across Indonesia. Any unilateral external barriers to trade will lead to significant harm for the Indonesian economy, scuttle attainment of the UN Sustainable Development goals, and undermine the financial security of farmers and their families.

Key highlights of GAPKI’s submission to the UK Government

  • Indonesian palm oil is the most certified commodity in the world. Indonesian producers already meet government standards (ISPO), NGO standards (e.g. RSPO), and European standards (ISCC). This guarantee of legality and sustainability is what makes Indonesian palm oil the #1 sustainable choice. Of these sustainability standards, ISPO is the only one based on legality
  • The key question is whether the UK Due Diligence measure will strike a reasonable balance between ensuring legality standards are met and enforced, and working with producer countries and the UK’s trading partners to avoid unnecessary trade barriers. Any subjective imposition of unilateral externally-designed standards would be an unacceptable infringement of Indonesia’s sovereignty and would be considered as an unjust barrier to trade
  • The best approach for the UK to follow would be a legality-based measure. A legality-based standard would provide a firm foundation for joint Indonesia-UK cooperation on future sustainability issues

See the full GAPKI’s response to the Consultation here.

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