PALMOILMAGAZINE, JAKARTA – As global scrutiny of the palm oil industry intensifies, Indonesia continues to demonstrate its commitment to sustainability through the Indonesian Sustainable Palm Oil (ISPO) certification scheme. Far beyond an administrative requirement, ISPO is being developed as an integrated sustainability system encompassing the entire palm oil value chain and involving multiple ministries and stakeholders.
Ratna Sariati, Head of the Subdivision for Quality Implementation and Supervision of Plantation Products at the Ministry of Agriculture, emphasized that ISPO is not merely a certification label. It is a comprehensive system ensuring that palm oil production is managed sustainably, adhering to economic, socio-cultural, and environmental standards in line with Indonesian regulations.
The legal foundation of ISPO is based on Law No. 39 of 2014 on Plantations, particularly Articles 2, 3, and 62. Its implementation is regulated through Presidential Regulation (Perpres) No. 44 of 2020, which was recently updated to Perpres No. 16 of 2025.
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One of the key updates in the new regulation is the expansion of ISPO’s scope—from upstream to downstream sectors—including palm oil processing industries and bioenergy. As a result, responsibility for ISPO implementation now involves not only the Ministry of Agriculture but also the Ministry of Industry (Kemenperin) and the Ministry of Energy and Mineral Resources (ESDM).
“This expansion is supported by institutional restructuring and revised financing mechanisms. Today, ISPO certification for smallholders can be funded through the state budget (APBN), regional budgets (APBD), or the Palm Oil Plantation Fund Management Agency (BPDPKS),” Ratna stated during the Forum Wartawan Pertanian (Forwatan) discussion held at Wisma Tani, Jakarta, on Wednesday (4 June 2025).
Ratna also highlighted that businesses failing to comply with ISPO requirements may face administrative sanctions, ranging from warnings and fines to temporary suspension of operations.
As of February 2025, a total of 1,157 business actors have obtained ISPO certification, covering approximately 6.2 million hectares of land. Of this figure, 84% are private companies, 9% are state-owned enterprises (BUMN), and 7% are smallholders. Indonesia has now surpassed Malaysia in terms of certified sustainable palm oil plantation area.
To further support ISPO’s expanded implementation, the Ministry of Agriculture is currently revising Ministerial Regulation No. 38 of 2020, aligning it with the latest presidential regulation. This revision aims to enable broader and more inclusive technical execution of the ISPO certification scheme. (P3)
