PALMOILMAGAZINE, JAKARTA — The Indonesian government has officially expanded the scope of the Indonesian Sustainable Palm Oil (ISPO) certification requirement. Under Presidential Regulation (Perpres) No. 16 of 2025, signed by President Prabowo Subianto on March 19, ISPO certification is now mandatory not only for plantation companies but also for downstream palm oil industries and palm-based bioenergy sectors.
This move is part of a broader effort to strengthen governance across the entire palm oil value chain—from upstream to downstream. Previously, under Perpres No. 44 of 2020, ISPO certification was only required for plantation business operators. The new regulation mandates that downstream products—such as cooking oil, margarine, soap, oleochemicals, biofuels, biomass, and biogas—must also obtain ISPO certification no later than March 19, 2027.
Key principles for ISPO certification in downstream and bioenergy sectors include regulatory compliance, traceability of raw materials, and sustainable business practices. Technical standards will be set by relevant ministries, such as the Ministry of Industry and the Ministry of Energy and Mineral Resources (ESDM). Certification will be conducted by institutions accredited by the National Accreditation Committee (KAN).
Also Read:
Despite this policy expansion, certification among independent smallholder farmers remains extremely low. According to the Ministry of Agriculture’s 2023 data, only 5.6 million hectares, or 37.08% of total oil palm land, have been certified under ISPO, with smallholders contributing only a small fraction of that.
Since its introduction in 2011, ISPO has undergone several revisions. However, major challenges persist—primarily the limited access smallholders have to the certification process. High costs, complex bureaucracy, and weak farmer institutions continue to hinder broader adoption.
The Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI) has welcomed the expanded regulation but emphasized the need for tangible support for smallholders. “If the government wants ISPO to scale quickly—especially among farmers—incentives are essential. These could include easier access to heavy machinery, fertilizers, road improvements, and institutional strengthening,” said a FORTASBI representative, as quoted by Palmoilmagazine.com on Monday, May 12, 2025.
FORTASBI also proposed that farmers with ISPO certification should automatically qualify for government assistance, simply by presenting their certification documents. This would turn the certification itself into a valuable incentive.
Equally important is the need for the government to intensify education and outreach programs about the importance of ISPO. As global markets increasingly demand environmentally friendly palm oil products, the widespread adoption of ISPO is seen as critical to the long-term sustainability of Indonesia’s palm oil industry.
Presidential Regulation No. 16 of 2025 marks a major milestone in reforming palm oil governance. However, without inclusive support policies—especially for independent farmers who control nearly 40% of the country’s palm oil land—the sustainability goals promoted by ISPO may remain out of reach. (P2)
