The Roundtable on Sustainable Palm Oil (RSPO) and the Center for International Private Enterprise (CIPE) have signed a Memorandum of Understanding (MoU) to support a more transparent and sustainable palm oil sector in Indonesia.
Founded in 1983 at the United States Chamber of Commerce to support democratic and economic development abroad, the Center for International Private Enterprise (CIPE) started in Latin America with initiatives to integrate thousands of unregistered small businesses into the “formal” economy, establish a regional business leadership training institute, and generate legislative advisories to inform policy.
The MoU will include the development of a capacity-building program for RSPO members and palm-oil-related stakeholders in Indonesia to promote the importance of transparency, anti-corruption practices, and overall business integrity within the Indonesian palm oil ecosystem.
Grower companies, civil society organizations, and RSPO’s intermediary partners will stand to benefit from the program.
Our formal partnership with CIPE has come at a befitting time when stricter regulatory requirements, such as the European Union deforestation regulations, are pushing for greater traceability within the palm oil supply chain. The MoU provides a framework for both parties to work towards a more resilient and accountable palm oil sector in Indonesia by enhancing the capacities of our members in these critical areas, said Joseph D’Cruz, CEO of RSPO.
Further existing collaboration
With the MoU, RSPO, and CIPE will work together to develop the training modules. RSPO will provide the resources (personnel) and know-how, while CIPE will provide the financial resources required for the implementation of the activities within the MoU.
RSPO has been working together with CIPE since 2019 to raise awareness and knowledge of anti-corruption prevention and to enable RSPO member companies in Indonesia to be more compliant and transparent.
The MoU provides an opportunity for RSPO and CIPE to review and enhance the capacity-building program in line with current needs and challenges within the industry, including the impact of COVID-19 and stricter regulatory requirements on the palm oil supply chain.
Today’s MoU signing represents our commitment to offering solutions to manage corruption risks for RSPO’s members, to the benefit of all of society. In addition, implementing the anti-corruption and business integrity measures and programs will increase business sustainability, said Frank Brown, Director Anti-Corruption Governance Center.
The MoU will enable RSPO to promote its Code of Conduct and ensure that its members comply with its standards.
It will also allow RSPO to leverage the private sector to drive market transformation, improve the performance of the palm oil industry, and increase the uptake of certified sustainable palm oil (CSPO).
A sustainable, competitive, and resilient palm oil sector will not only secure the long-term viability of the entire supply chain, but also the livelihoods of communities where oil palm is grown.
