PALMOILMAGAZINE, JAKARTA – The Government of Indonesia, through the Ministry of Energy and Mineral Resources (ESDM), has officially issued Ministerial Regulation No. 3 of 2026 on Indonesian Sustainable Palm Oil (ISPO) Certification for Palm Oil Bioenergy Businesses.
The regulation provides the legal framework that makes ISPO certification mandatory for biodiesel producers and other palm-based bioenergy companies, marking a major step in extending sustainability standards beyond plantations into the downstream energy sector.
Director of Bioenergy Edi Wibowo explained during a public dissemination session that the certification requirement originates from Presidential Regulation No. 44 of 2020, which was later strengthened under Presidential Regulation No. 16 of 2025 on the Indonesian Sustainable Palm Oil Certification System.
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“In order to implement the mandate of Presidential Regulation No. 16/2025, Ministerial Regulation No. 3/2026 was drafted to technically govern the implementation of ISPO certification in the bioenergy sector,” Edi stated in his presentation on Wednesday (25/2/2026).
Derivative of Presidential Mandate: From Principles to Sanctions
Presidential Regulation No. 16/2025 explicitly mandates further technical provisions to be issued by the minister responsible for energy affairs. Several articles form the legal backbone of the new ministerial regulation:
- Article 3(4)(c): ISPO principles and criteria for the energy sector must be determined by the Minister of ESDM.
- Article 5(3)(c): Governs administrative sanctions.
- Article 13(c): Regulates certification requirements and procedures.
- Article 14(3)(c): Stipulates surveillance or periodic certification audits.
With the issuance of Regulation No. 3/2026, these mandates now carry clear legal certainty and operational mechanisms for palm-based bioenergy companies.
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Mandatory Compliance with ISPO Principles and Criteria
The regulation clearly states that palm bioenergy companies are required to implement ISPO certification by applying the officially established ISPO principles and criteria for the bioenergy sector.
This obligation reinforces the government’s stance that sustainability standards apply not only to upstream plantation activities but also to downstream industries, including biodiesel and other palm-based renewable energy businesses.
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Under Chapter IV on administrative sanctions, the Minister of ESDM is authorized to impose penalties on companies that fail to comply. These sanctions include:
- Written warnings
- Administrative fines
- Temporary suspension of business activities
The enforcement framework is designed to ensure compliance and strengthen oversight across the national palm oil value chain.
Certification Obligation Effective in 2027
Although Ministerial Regulation No. 3/2026 took effect upon promulgation, the mandatory ISPO certification requirement for palm bioenergy companies will become fully enforceable on 20 March 2027.
Through this regulation, the government is solidifying its commitment to integrating ISPO sustainability standards across the entire palm oil supply chain, including the renewable energy segment.
Strategically, this move is expected to enhance governance, strengthen the competitiveness of Indonesia’s biodiesel industry, and address growing global market demands for traceable and sustainable bioenergy products. (P2)
