"New Landscape of Global Vegetable Oils and What Should

be Indonesia's Response”

Ms KHOR Yu Leng, Research Head

Segi Enam Advisors Pte Ltd, yuleng@segi-enam.com
November 3rd, 2022 at 10.20 AM – 12.00 PM. 10 minutes & an interactive panel discussion.

18th Indonesian Palm Oil Conference and 2023 Price Outlook (IPOC), Bali International Convention Center, The Westin
Resort Nusa Dua, Bali, Indonesia from November 2nd – 4th, 2022.
EU (and other) compliance regulations on the rise

● Voluntary era of sustainability / ESG shifts to the regulatory era.

● Origin regulation. Indonesia’s multiple moratoria, Indonesia - Norway forest
deals, forest wildfires control. All positives. Taming /delinking of commodity
price to deforestation at national level; larger plantations already acceding to
certifications (RSPO, ISCC…) and NDPE pledges. But questions remained for
key consumer markets. Indonesia ups migrant regulation too.
● Destination regulation. Now, EU politicians-public push further on EU
Commission proposals. How will the Council balance? US DOL pinpoints
palm downstream. A silver lining for palm oil? More products under
regulatory rigour. Might public doubt in key markets be more reassured?
yuleng@segi-enam.com, 3 Nov 2022
Context… from SIIA Haze Outlook 2022

yuleng@segi-enam.com, 3 Nov 2022

Context… from SIIA Haze Outlook 2020

yuleng@segi-enam.com, 3 Nov 2022

Context… from SIIA Haze Outlook 2021

yuleng@segi-enam.com, 3 Nov 2022

Indonesia’s relative success to-date
● Baton of thought leadership handed to Indonesia. Certified, value-added
material….
● Individual company efforts and strong policy efforts.
● Europe market has shifted from traditional food to energy end-markets.
● Deforestation has slowed and efforts on taming forest fire risk have results.
Indonesia emissions control, while being watchful of El Nino/ dry climate driver
risks.
● Campaigns for palm oil - negative and positive approaches.
● EU wants to include more smallholder zones and newer / nearer cut-off
dates. Expands supply base volumes but with legality, traceability at the fore.
● Pandemic-driven logistics challenges strengthened Sumatra versus others.

yuleng@segi-enam.com, 3 Nov 2022

What should be Indonesia’s (further) response?
Strengthen the common interest in widest possible market access by expanding a positive
& proactive campaign. Three things to do:
● Strengthen & expand data metrics. International info-data often underutilized for
metrics to strengthen the case for Indonesia palm oil. A good combination with
domestic research. Metrics for NGOs? Carbon compliance competitive pressures?
● Find a fresh brand & narrative. With carbon transition, conservation & restoration
policy framework. Strengthen community forest livelihoods, alleviate rural population
pressure. Forest frontiers for organic, red palm oil?
● ISPO-inside traceability & legality. Customer preference points to “ISPO plus” options.
Resolve for degraded forests & forests inside plantations. Technology options to
anonymise and share map data?

yuleng@segi-enam.com, 3 Nov 2022