Detail

Indonesia

Oilseeds, oils and meals

Palm oil

01/04/2020

Production

Production sustainability policies

Embarked on a reform of the Indonesian Sustainable Palm Oil certification system, with a view to addressing implementation obstacles that had been faced since the scheme’s launch in 2011. Aimed at creating an effective, efficient, fair and sustainable oil palm management system able to support national economic development, the Government’s initiative would concentrate on: i) improving management of the country’s oil-palm plantations in line with a reformulated set of principles and criteria; ii) raising the acceptance and competitiveness of palm oil products in national and international markets; and iii) enhancing the reduction of greenhouse gas emissions. The revised scheme would extend mandatory certification to smallholder growers, who would be given five years to achieve certification and would receive support, including financial assistance.

INDONESIA – certified sustainable palm oil: A Presidential Regulation overhauling the Indonesian Sustainable Palm Oil (ISPO) certification system was published on 13 March, ending a lengthy reform process meant to address a variety of implementation obstacles faced since the scheme’s launch in 2011 (see MPPU Aug.’11, Apr./Dec.’13, Mar.’16, Apr.’17, May’18 & Nov.’19). The initiative’s declared objective is to create an effective, efficient, fair and sustainable oil palm management system that is able to support national economic development. More specifically, the reform of the existing certification system is directed at i) improving the management of the country’s oil palm plantations in line with reformulated ISPO principles and criteria guaranteeing socially, economically and environmentally viable production; ii) raising the acceptance and competitiveness of palm oil products in both the national and international market; and iii) enhancing the reduction of GHG emissions. Accordingly, reform efforts would concentrate on: introducing more stringent ISPO standards and requirements; raising attention to deforestation and peatland conversion issues; making certification mechanisms more accountable and transparent, while allowing the participation of public, private and civil society stakeholders; and introducing sanctions for business players violating the system’s provisions. Furthermore, the new regulation will extend mandatory certification to smallholder growers, which will be given 5 years to achieve certification and are entitled to receive support including financial assistance. In Indonesia, smallholders manage about 40% of the country’s total oil palm plantation area. According to observers, to date small producers lacked access to government support, training and high-yielding seedlings and, to make up for the resulting low levels in productivity, they tended to clear new land for planting using slash-and-burn methods – a problem that the revised ISPO scheme tries to address.