PALMOILMAGAZINE, JAKARTA – The Indonesian government is intensifying efforts to accelerate the implementation of the Indonesian Sustainable Palm Oil (ISPO) certification among palm oil companies and smallholders as part of its broader strategy to strengthen sustainable palm oil governance nationwide.
To support this initiative, the government has prepared various financing schemes and technical assistance programs aimed at helping smallholders meet ISPO certification requirements without facing excessive financial burdens.
Ratna Sariati from the Directorate of Plantation Product Downstreaming under the Directorate General of Estates at the Ministry of Agriculture explained that ISPO serves as Indonesia’s national sustainability standard for the palm oil sector. The certification ensures plantation management and palm oil processing activities comply with national regulations while addressing environmental, labor, social, and governance aspects.
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“ISPO ensures that palm oil and its derivative products are produced through plantation and processing practices that comply with regulations, while also paying attention to environmental protection, labor standards, social issues, and proper governance,” Ratna said.
She emphasized that the palm oil sector remains strategically important to Indonesia’s economy, supporting the livelihoods of millions of people across the country. According to Ratna, the industry directly employs around 2.5 million workers and indirectly supports more than 12 million others.
“The palm oil industry is not operating in isolation. It provides jobs for millions of Indonesians, and its future prospects remain strong,” she said, as quoted by Palmoilmagazine.com from Small Talk Fortasbi on Tuesday (12/5/2026).
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Government Provides Financial Support for ISPO
Ratna stated that the government has established multiple support mechanisms to help smallholders comply with ISPO requirements. These include funding assistance for administrative documentation, technical mentoring, certification costs, training, and educational programs.
“Farmers should not be worried, but they must commit to implementing ISPO standards. The government supports them through funding facilitation for documentation, mentoring, certification costs, and education,” she explained.
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Funding sources are drawn from several schemes, including the Plantation Fund Management Agency (BPDP), the state budget (APBN), regional budgets (APBD), and revenue-sharing funds (DBH).
The assistance can be used to complete administrative requirements such as the Plantation Cultivation Registration Certificate (STDB), environmental management documents, and plantation business development programs.
Smallholders Encouraged to Coordinate with Local Governments
Ratna also highlighted that access to DBH funding is managed through local governments. Therefore, farmer groups are encouraged to actively coordinate with regional authorities to ensure certification assistance and funding programs are incorporated into local budget planning.
“The proposal process goes through local governments because the funds are transferred to the regions. Regional governments will later determine the allocation details for assistance and certification activities,” she explained.
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She urged farmer groups to establish communication with relevant local agencies as early as possible so that their certification and assistance needs can be properly recorded.
Ratna acknowledged that many smallholders still worry about certification costs and the periodic audit requirements associated with ISPO implementation. In addition to meeting initial compliance requirements, farmers are also required to undergo regular audits and continuous training.
Nevertheless, the government reaffirmed its commitment to supporting smallholders through sustainable financing and long-term assistance programs.
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“The government remains committed to supporting funding and technical assistance. In addition, many NGOs and development partners are currently active in helping smallholders achieve sustainable palm oil certification,” Ratna concluded. (P2)
