ICEPO. Jakarta. 28 May 2014 Presented by Desi Kusumadewi RSPO Indonesia Director romoting the Use of Certified Sustainable Palm Oil (CSPO) Certified Sustainable Palm Oil (CSPO) In Producing Countries P

Content 1.RSPO - an update 2.Why Sustainable Palm Oil – the values 3.How does the use of CSPO become strongly relevance for Indonesia?

RSPO - AN UPDATE

RSPO – About Us Vision “RSPO will transform markets to make sustainable palm oil the norm”

WHY SUSTAINABLE PALM OIL – T HE V ALUES

Natural resources are luxury goods.

Development Considerations People. Planet. Profit LEGAL People Planet Profit

What are the values of Sustainable Palm Oil? What What are the values? Benefits of certification exist but lack clear documentation – Income of certified smallholders is greater due to  Larger output of production and improved quality  More competitive production costs – Increased Cost Efficiency – Case based evidence confirms impacts:  Smallholders reported productivity +187% in cases  Impact of reduced disruptions - 4 day strike at 10,000 ha plantations bears costs of +/- USD 1 million  Avoidance of social conflict to save over USD 1 million per year Overall triple advantage seen ▪ Social: Increased staffed moral and loyalty, better community relations ▪ Economic: Fewer strikes and reduced downtime, higher yields, better access to market and capital, cost efficiency, waste management, better risk management ▪ Environmental: Preservation of HCV areas and maintaining ecosystem services, Overall triple advantage seen ▪ Social: Increased staffed moral and loyalty, better community relations ▪ Economic: Fewer strikes and reduced downtime, higher yields, better access to market and capital, cost efficiency, waste management, better risk management ▪ Environmental: Preservation of HCV areas and maintaining ecosystem services,

Climate Change issues associated with Open Burning - Haze Environmental Issues Haze in Kuala Lumpur, May 2013 Washington DC, June 2012

STRONG RELEVANCE OF THE USE OF CSPO IN INDONESIA

Growing relevance of CSPO for Indonesia

 Indonesia is the largest producer and exporter of palm oil - the country has moved towards the right direction by becoming the biggest producer of RSPO-CSPO  Indonesia is a natural resources-dependant country – and natural resources are luxury goods  Yet, its key agricultural commodities record a low national productivity – palm oil, rubber, coffee, cocoa  Mandatory ISPO - complimentary to voluntary RSPO  Indonesia is the biggest consumer of palm oil in the planet – Use of CSPO in Indonesia market is thus a need, to ensure Indonesia’s environment is well protected and people’s welfare is improved, while ensuring economic availability of the palm oil for long-term consumption

RSPO-trademarked products are very relevant for Indonesian market Fully Sustainability across the supply chain

Terima Kasih. RSPO Indonesia Office Mayapada Tower, 9 th Floor Jalan Jendral Sudirman Kav. 28, Jakarta Tel Fax Website: Terima Kasih.