PALMOILMAGAZINE, JAKARTA — Indonesia has introduced a revised regulation governing the implementation of the Indonesia Sustainable Palm Oil (ISPO) standard, marking a significant step toward strengthening national sustainability requirements. The Ministry of Agriculture on 21 November 2025 issued Ministerial Regulation (Permentan) No. 33/2025 on Indonesia Sustainable Palm Oil Certification, replacing Permentan No. 38/2020.
The updated framework represents a new phase in the reform of the ISPO system, aimed at enhancing compliance, improving governance, and expanding certification obligations to cover both corporate growers and smallholders.
Under the new rule, all plantation businesses—companies and smallholders alike—are required to obtain ISPO certification, as stipulated in Article 2. For companies, the certification must comply with seven core principles that now form the foundation of the ISPO standard: adherence to regulations; good agricultural practices; environmental, natural resource, and biodiversity management; labor responsibility; social responsibility and community economic empowerment; transparency; and continuous business improvement.
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The strengthened principles are designed to ensure that the palm oil industry operates with greater transparency, ethical governance, and environmental responsibility.
The regulation also clarifies the dispute resolution mechanism for certification. Article 42 states that objections to the certification process or the issuance of ISPO certificates may be filed through an appeal or complaint, offering clearer avenues for redress.
Oversight responsibilities are further detailed in Article 64, assigning monitoring duties to the Ministry of Agriculture, governors, and regents/mayors according to their authority, with structured reporting obligations up to the Directorate General. The system is intended to create a more consistent and coordinated supervision framework across regions.
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While certification costs are mandated to be borne by each business actor (Article 67), the government opens room for financial support to smallholders seeking certification. Assistance may be provided to help address long-standing challenges faced by smallholders, such as limited capital and access to technical guidance.
One of the notable provisions in the revised ISPO rule is the prioritization of incentives for certified smallholders (Article 80). Those who obtain certification qualify for priority access to funding from the plantation fund management agency for human capital development, research and innovation, replanting programs, and improvements to infrastructure and facilities. Funding distribution will follow technical guidelines issued by the Directorate General.
With the enactment of Permentan No. 33/2025, the previous regulation—Permentan No. 38/2020—is officially revoked (Article 83), marking a significant milestone in the modernization of Indonesia’s sustainable palm oil certification system. (P2)
