The Missing Link in Indonesia's Palm Oil Supply Chain, Is your supply chain ready from plantation to market?
The Challenge Starts at the Source Indonesia's palm oil supply chain involves multiple suppliers and independent smallholders. Collecting consistent geolocation data, land documentation and reliable production records across these networks can be challenging.
The result? Gaps in supply chain visibility can complicate EUDR due diligence. Traceability Is More Than Knowing Your Supplier Under the EU Deforestation Regulation (EUDR), relevant palm oil products must meet applicable deforestation-free and legal production requirements.
Businesses need to establish the origin of relevant commodities and maintain the information required to support due diligence
Four Areas Businesses Should Review
Land documentation : Are relevant legal production requirements adequately documented?
Geolocation : Can the production plots be identified accurately?
Supplier traceability : Can relevant commodities be traced through the supply chain?
Data consistency : Are records complete, reliable and aligned across suppliers?
From Data Gaps to EUDR Readiness
Map relevant products and supply chain actors.
Collect and validate production geolocation data.
Review applicable land legality documentation.
Assess deforestation and legal compliance risks.
Establish due diligence procedures and supporting records.
Stronger Traceability.
Better Supply Chain Visibility
Improving traceability and data quality can help businesses identify supply chain gaps, strengthen risk management and prepare the information needed for applicable EUDR obligations.
Responsible sourcing starts with reliable information. Is Your Palm Oil Supply Chain EUDR-Ready?
Peterson Solutions Indonesia supports businesses in navigating sustainability requirements and strengthening responsible supply chain practices.
Visit www.petersonindonesia.com to learn more.
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