PALMOILMAGAZINE, JAKARTA – After a long wait, the revised Indonesia Sustainable Palm Oil (ISPO) policy has finally been signed into effect. On March 19, 2025, President Prabowo Subianto officially enacted Presidential Regulation No. 16 of 2025, marking a new chapter for the palm oil sector.
For industry players, this is both a breath of fresh air and a new challenge. The updated regulation not only replaces Presidential Regulation No. 44 of 2020 but also introduces significant reforms and expansion.
As reviewed by Palmoilmagazine.com on Friday (April 11, 2025), the new ISPO policy significantly broadens its scope. Previously limited to palm oil plantations, the certification now extends to three main sectors: palm oil plantations, downstream palm oil industries, and palm-based bioenergy businesses. In other words, the entire palm oil supply chain—from farms to refineries to biofuel—must now comply with Indonesia’s sustainability standards.
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Importantly, the regulation includes firm enforcement measures. Article 5 outlines penalties for non-compliance, including written warnings, administrative fines, and temporary suspension of business operations. The authority to impose sanctions will depend on the sector—either the Ministry of Agriculture, Industry, or Energy.
The regulation also addresses certification costs. Acknowledging the financial disparity among stakeholders, Article 16 stipulates that ISPO certification costs are to be borne by businesses. However, for smallholder farmers, alternative funding sources are available—including the palm oil fund, the national budget (APBN), regional budgets (APBD), and other legal sources—ensuring inclusivity and support for small-scale growers.
Finally, Article 28 officially revokes the previous ISPO regulation, Presidential Regulation No. 44 of 2020, although existing implementing rules may still apply as long as they do not contradict the new provisions.
This latest ISPO revision is more than just a technical update. It’s part of a broader national narrative—Indonesia’s commitment to proving that palm oil, if managed responsibly, can be a partner in sustainability rather than an environmental threat. With Prabowo’s signature, that vision is now officially set in motion. (P2)
