PALMOILMAGAZINE, JAKARTA – The Indonesian government is intensifying its efforts to digitally transform the national palm oil industry through the development of an integrated information and traceability system. This initiative plays a crucial role in the country’s broader strategy to enhance the global competitiveness of its top agricultural commodity while addressing sustainability demands from international markets.
During a meeting with the Indonesian Sustainable Palm Oil (ISPO) team on Thursday, May 22, Coordinating Minister for Economic Affairs Airlangga Hartarto received updates on the progress of the national palm oil information and traceability system. The system is being developed as the foundation for more transparent, accountable, and forward-looking governance in the palm oil sector.
“Strengthening technology-based information systems is key to addressing global challenges, particularly in terms of transparency and sustainability. A robust traceability mechanism will add value and enhance international trust in Indonesian palm oil products,” said Minister Airlangga, as quoted by Palmoilmagazine.com from the Coordinating Ministry’s official website on Friday (May 23).
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The system will include critical components such as ISPO certification data, plantation geolocation, and environmental monitoring. The traceability technology being implemented will enable end-to-end tracking across the entire supply chain, supporting compliance with increasingly stringent national and international sustainability standards.
Minister Airlangga emphasized the importance of designing a system that is simple, accessible, and user-friendly for all stakeholders — from smallholder farmers to large agribusinesses and independent auditors.
“The system must be user-friendly so that every actor — big corporations and smallholders alike — can engage with it effectively. It should be simple yet functional and compatible with global market requirements,” he stressed.
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According to Airlangga, the system’s success will depend heavily on cross-sector collaboration involving government agencies, industry associations, academic institutions, and independent observers. Furthermore, the system is expected to align with national strategic policies, including the roadmap for a sustainable palm oil industry.
“Palm oil remains a backbone of our national economy. We must demonstrate that Indonesian palm oil is produced through responsible and sustainable practices,” Airlangga concluded.
With a more transparent, data-driven approach, Indonesia aims to solidify its position as a leading global palm oil producer committed not only to competitiveness but also to long-term sustainability. (P3)
