“But with the EUDR, it is not only the energy sector that is hampered but also the food sector. So this EUDR has a very broad impact on the food, energy and industrial sectors,” he said.
Before the EUDR came into effect, he added, exports from Indonesia and Malaysia dropped significantly to the European Union since 2017. Indonesia once exported 5.5 million tons of palm oil products, but this dropped to 3.7 million tons in 2022, even though vegetable oil consumption in the European Union grew by 4.3 percent.
“This happened after there were barriers to palm oil. Trade restrictions occur due to competition with other vegetable oils,” he said.
Helmi Muhansyah, Head of UKMK Division of the Palm Oil Plantation Fund Management Agency (BPDPKS), said that in anticipation of trade barriers against palm oil products, the government has increased domestic consumption of palm oil through a series of policies such as biodiesel and red oil products.
According to him, BPDPKS strives to have an impact on improving the welfare of the people, one of which is through empowering partnerships of Small, Medium and Cooperative Enterprises (UKMK).
“We conduct promotions to improve the image of palm oil products and expand the palm oil market,” he said during the BPDPKS “Healthy Palm Promotion” event.
In addition, he added, the palm oil research program funded by BPDPKS is also expected to be utilized by SMEs.
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