Indonesia urges palm oil plantations to meet eco-standard

Indonesia, the world's largest producer of palm oil, has asked all palm oil plantation firms in the country to meet environmental and sustainable standard in a bid to boost competitiveness at global markets.

Indonesian agriculture ministry has asked owners of the plantations to meet the standard by September 25, stressing that otherwise their business licenses will be lifted, said Gamal Nasir, director general of plantation of the ministry said here on Monday.

According to data from the ministry, so far only 17 percent or 97 plantation firms have met the standard.

The firms already complying with the standard must apply for a certificate from the government as evidence of their compliance.

"We will give warning for three times for the companies to meet with the standard. Should they still ignore to apply we will revoke their business licenses," he said at the ministry.

Indonesian authorities have frequently tackled campaigns launched by European countries that accuse the way of cultivating the commodity by damaging forest and ignoring environmental aspects.

"We want to prove what have been accused on us is not right," said Nasir.

Indonesia expects all plantation firms in the country to operate under the country's environmental and sustainable standard.

However, the director admitted that many plantations still face difficulties in complying with the aspects of environment requirement, legality, business management and social responsibility.

Indonesia's crude palm oil output is expected to rise by over five percent this year to 31 million tons from last year's production expectation.