For many of Indonesia's diplomats, trade officials, and policymakers, palm oil has long been a subject discussed through policy papers, certification frameworks, trade statistics, international negotiations, and diplomatic dialogues. But understanding an industry on paper is different from seeing how it works on the ground.

That was the idea behind the Capacity Building Programme on Foreign Negotiation and Diplomacy for Sustainable Palm Oil: to bring participants closer to the realities behind the policies and international discussions they engage in every day.

Organized through collaboration between the Coordinating Ministry for Economic Affairs, the Center for World Trade Studies (CWTS) UGM, and UNDP through the FAST Project funded by UK Foreign, Commonwealth & Development Office (UK FCDO), the programme aims to strengthen Indonesia’s capacity to engage in international diplomacy and negotiations on sustainable palm oil. A three-day field mission in North Sumatra formed an important part of that effort, taking participants from plantations and processing facilities to smallholder farms and cooperatives.

For some participants, it was their first time visiting a palm oil plantation or mill. The experience offered an opportunity to see how sustainability, trade, technology, and livelihoods come together across the value chain—and to consider how those realities shape the issues Indonesia brings to international discussions.

The programme was designed around a simple yet powerful idea: seeing is believing. The objective was to allow participants to move beyond theoretical understanding and experience firsthand the realities of Indonesia's palm oil value chain, from plantation to processing facility, and from corporate operations to smallholder livelihoods.The visit began at PTPN IV's plantation and palm oil mill operations. Participants also explored downstream processing facilities at PT Industri Nabati Lestari (INL) within the Sei Mangkei Special Economic Zone, and concluded their learning experience with smallholder farmers and cooperative leaders at KPUD Lestari. The itinerary was carefully designed to provide a complete picture of the palm oil sector, demonstrating how production, processing, governance, traceability, markets, and livelihoods are interconnected.

At PTPN IV, participants learned how Fresh Fruit Bunches (FFB) was transformed into Crude Palm Oil (CPO). Walking through plantations and processing facilities, participants observed firsthand how sustainability is operationalized through Good Agricultural Practices (GAP), occupational health and safety measures, technological innovation, digital monitoring systems, worker protection, and plantation management. Rather than discussing sustainability as an abstract concept, participants could see how daily operational decisions influence productivity, quality, traceability, and environmental performance.

The visit also challenged common assumptions that sustainability is solely a matter of certification. Rather, participants observed how sustainability is embedded in day-to-day management practices that shape the environmental, social, and economic performance of palm oil production. From worker safety measures that safeguard labour welfare, to preventive maintenance that improves operational efficiency, real-time monitoring systems that support responsible management, and the adoption of electric vehicles to reduce environmental footprints, sustainability was evident throughout the production process. Participants also observed the use of nature-based solutions to address pest and disease challenges, as well as improved waste management practices that transform production by-products into value-added products, reducing environmental impacts while generating additional economic benefits. The experience demonstrated that sustainable palm oil is not defined by a single certificate, but by a culture of continuous improvement embedded across the entire value chain.

The second day brought participants to PT Industri Nabati Lestari (INL), one of Indonesia's major downstream palm oil processing facilities.  They witnessed how CPO is refined into a variety of derivative products serving both domestic and international markets, including products used in food manufacturing, consumer goods, and oleochemical industries.

For one participant from the Ministry of Trade, the refinery visit was a particularly transformative experience.

"In my work, I often discuss palm oil products, derivative products, specifications, and technical requirements related to international trade. However, most of my understanding has come from documents, reports, and regulatory discussions. Visiting the refinery and seeing the process firsthand made a tremendous difference. For the first time, I could connect the products, derivative products, and even some of the technical and chemical aspects we discuss in our work with the actual industrial process behind them. It significantly strengthened my understanding and gave me a much clearer picture of the industry we represent." –  Asasia Fitria Bassya, Ministry of Trade

The statement captures one of the programme's most important outcomes. Knowledge that was previously conceptual suddenly became tangible. Products that existed only as tariff categories, specifications, and export data acquired new meaning when participants could witness the processes that produced them. The experience highlighted the importance of grounding trade and diplomatic narratives in practical understanding and real-world evidence.

The final day shifted the focus toward one of the most important actors in Indonesia's palm oil landscape: smallholder farmers. At KPUD Lestari, participants listened directly to cooperative leaders and farmers discussing their journeys toward sustainability certification, their efforts to improve productivity and traceability, and the challenges they face in meeting certification and legality requirements. The discussions revealed that sustainable palm oil is ultimately about people as much as it is about production systems.

Participants learned that while certification frameworks such as RSPO and ISPO provide important sustainability standards, implementation often depends on institutional capacity, access to information, cooperative support, and economic incentives. They heard firsthand how challenges related to land legality, certification costs, documentation requirements, and market access can affect the ability of farmers to participate in sustainability initiatives. These conversations offered an invaluable perspective that is rarely visible in policy papers or technical reports.

The field immersion also left a significant impression on participants from diplomatic institutions. For one official from the Ministry of Foreign Affairs, Faiez Maulana, the experience represented a completely new way of understanding Indonesia's palm oil sector.

“This was my first opportunity to see the palm oil sector firsthand, from smallholder farms to mills and refineries. The experience provided a much deeper understanding of how the sector operates in practice, beyond what can be learned from reports and discussions. It has strengthened my ability to engage in international dialogues and negotiations with a more nuanced, evidence-based perspective on Indonesia’s palm oil industry.”

The field mission also highlighted that sustainability is not only an environmental or economic question. It has a social dimension that needs to be understood across the value chain. Women, for example, contribute in many ways to the palm oil sector, from plantation operations and administration to cooperatives, entrepreneurship, and community activities. Yet these contributions are not always equally visible in sector policies or programmes.

This perspective was echoed by Mr. Mochamad Edy Jusuf, Deputy Assistant at the Coordinating Ministry for Economic Affairs, who underscored the importance of strengthening gender considerations across the palm oil sector. Reflecting on the field mission, he highlighted the diverse roles women play throughout the palm oil value chain, including plantation operations, administration, cooperatives, entrepreneurship, and community development. He emphasized that recognizing and supporting these contributions is essential to advancing a more inclusive and sustainable palm oil industry. Mr. Edy also encouraged stakeholders to utilize the Guidance for Gender Mainstreaming in the Palm Oil Sector, recently launched by the Coordinating Ministry for Economic Affairs in collaboration with UNDP under the Green Commodities Programme (GCP), as a practical reference for integrating gender perspectives into sector policies and initiatives.

As the programme concluded, participants returnedwith stories, observations, and experiences that will shape how they engage in future negotiations and policy discussions. They had spoken with farmers, walked through plantations, stood inside processing facilities, observed industrial operations, and witnessed firsthand both the opportunities and challenges facing Indonesia's sustainable palm oil sector. Beyond strengthening individual knowledge and negotiation capacity, the programme contributed to FAST's broader objective of advancing sustainable commodity governance by building institutional capacity, fostering informed dialogue, and strengthening stakeholders' ability to engage on sustainability issues grounded in practical field realities. In doing so, it supports Indonesia's transition toward a more sustain

Most importantly, the field immersion demonstrated that effective diplomacy begins with understanding. Facts, statistics, and policy briefs remain important, but they become far more powerful when supported by firsthand experience. By connecting negotiators directly with the realities of production, processing, and livelihoods, the programme succeeded in transforming participants from observers into informed advocates.

In an era where international debates on palm oil are increasingly complex and often shaped by competing narratives, one lesson stood above all others:

Strong diplomacy requires credible voices. Credible voices require real understanding. And sometimes, understanding begins simply by seeing it for yourself.

Seeing, indeed, is believing.

Written by: Wiene Andriyana

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About FAST Project:

The Forest, Agriculture, and Sustainable Trade (FAST) Project, implemented by UNDP with financial support from the UK Foreign, Commonwealth & Development Office (UK FCDO), supports Indonesia's transition toward more sustainable, inclusive, and competitive commodity systems, with a particular focus on palm oil and cocoa. The programme contributes to strengthening sustainable commodity governance by advancing policy reforms, institutional capacities, stakeholder coordination, and international engagement necessary to enable long-term improvements in sustainability performance, traceability, market access, and responsible business practices. By connecting policy reform, stakeholder engagement, sustainable value chains, and international dialogue, FAST project contributes to a more competitive, inclusive, and sustainable commodity sector that benefits people, markets, and the environment.