PALMOILMAGAZINE, JAKARTA – In recent days, the Deputy II Coordinator of the Ministry of Economy conducted a public consultation on the draft of the Indonesian Sustainable Palm Oil President Regulation (ISPO PR).
This consultation highlighted the draft’s independence and its role as a replacement for PR Number 44/2020. The ISPO PR encompasses both the upstream and downstream sectors, including palm oil plantations, downstream industries, and bioenergy businesses.
The new ISPO PR will consist of 7 chapters and 31 articles, establishing the legal framework for stakeholders, particularly ISPO committee members, the ISPO secretariat, and smallholder planters, in terms of funding.
Pahala Sibuea, Chairman of the Indonesian Oil Palm Farmers Association (POPSI), emphasized, “The funding for the ISPO secretariat and committee will be supported by the Palm Oil Plantation Fund Management Agency (PFMA). In addition to PFMA, planters, including smallholders, can access funds from various sources, such as profit sharing, as outlined in the recently published Regulation of the Minister of Finance Number 91/2023. Although not explicitly stated within the ISPO, this provision is now in effect.”
Also Read : Palm Oil Profit Sharing Scheme Set to Launch Pending Presidential Approval
ISPO certification does not smoothly run as what it was hoped for since the publication of President Regulation (PR) Number 44 / 2020 and the Regulation of Minister of Agriculture Number 38 / 2020. Many challenges and obstacles are ahead particularly in the implementation.
He thought, the stakeholders proposed to substitute ISPO to be the answer of market acceptance about palm oil products from Indonesia. This should deliver answers how much important ISPO would be for the planters.
He continued, POPSI would keep paying attention the publication of implementation regulation of new ISPO GR both in the form of regulation of minister of agriculture and decision of general director of plantation. There are many things to add, such as, the fund proposal should be simpler both in socialization and internal control system training. ISPO certification process and sanction should be regulated for mills without plantations for they cannot be controlled.
“Let us monitor together the regulation of minister of agriculture and or decision of general director of plantation that would be the implementation regulation to realize the better palm oil plantation (industrial) governance in Indonesia and the markets would accept palm oil products from Indonesia globally,” he said. (T2)
