Palm oil producer, PT Bumitama Gunajaya Agro and agro industry investor, PT Varie Twelve have pledged to invest EUR 1 million in the Compact. These two companies along with other producers such as PT Austindo Nusantara Jaya Tbk (ANJ) and Goodhope are committed to produce sustainable palm oil from the jurisdiction.

Martin Rantan, Bupati Ketapang, during his speech, said: “We need to be innovative in order to realize a good governance and green economic growth in for the District. The compact is one of our efforts to collaborate with all stakeholders in sustainably managing natural resource in Ketapang”

Fitrian Ardiansyah, Executive Chairman of Yayasan Inisiatif Dagang Hijau (IDH), said: “The Compact signed by the Ketapang District, and key stakeholders such as palm oil producers and IDH, is an important step for sustainable development – not only in the West Kalimantan, Indonesia, but globally. This signing marks the beginning of a new era of sustainability: connecting national, especially the independent smallholders, and international markets to sustainably managed production areas. This is a new sustainable market mechanism that rewards regions that address environmental, social and economic sustainability in one approach that managed by a multi-stakeholder platform.”

The jurisdictional landscape approach will improve the productivity of independent smallholders to manage their oil palm plantations sustainably, therefore accelerating economic development in the area without increasing the need for converting forests into plantation.

Kamsen Saragih, Director of PT Bumitama Gunajaya Agro, said: “Bumitama has been supporting the PPI Compact since 2016 and we are happy that it has been officialised today, when the different stakeholders came together and signed the Memorandum of Understanding (MoU) that promotes sustainable palm oil production. We believe that his framework has the potential to institute a trademark Ketapang responsibly-produced palm oil on the global markets and its positive will be felt by all, especially the rural communities who need sustainable growth.”

When it comes to protection, the Compact aims to protect and restore forest and peatland conservation areas. In terms of inclusion, it aims to regulate the land rights of independent smallholders, while also boosting livelihood opportunities through increased sustainable practices and its production.

West Kalimantan province plays an important role in the production of palm oil in Indonesia, accounting for about 5.5% of the national crude palm oil (CPO) production. It also has a very important environmental protection component due to its remaining forest area, of which 33% is conserved.

The Compact is, therefore, a crucial step in helping the district meet its economic, conservation and social goals. After signing of The Compact, the parties will encourage more stakeholders to join. Later, the stakeholders will also be encouraged to agree to form an action plan, a monitoring system, and a multi-stakeholder platform, which will become the governance body of Ketapang PPI Compact. The initiative will also contribute to Indonesia’s national goals declared by the UN under the Paris Agreement. The goals stress the country’s nationally determined contributions (NDCs) to reduce emissions by 29% in 2030. In addition, there is an aim to support the Government’s National Action Plan on Sustainable Palm Oil.