PALMOILMAGAZINE, JAKARTA – The Indonesian government is continuing to strengthen the implementation of Indonesian Sustainable Palm Oil (ISPO) by preparing a range of incentives for palm oil smallholders who have adopted sustainable plantation practices and obtained ISPO certification.
Ratna Sariati from the Directorate of Plantation Product Downstreaming under the Directorate General of Plantations at the Ministry of Agriculture explained that the government has not yet implemented a premium pricing scheme similar to that used under Roundtable on Sustainable Palm Oil (RSPO) certification.
However, she emphasized that the government is already prioritizing certified smallholders and farmer groups in various assistance and facilitation programs.
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According to Ratna, the incentives currently focus more on preferential access to government support programs for ISPO-certified farmers rather than direct price premiums.
She explained that much of the support is distributed through programs managed by the Plantation Fund Management Agency (BPDP), particularly initiatives aimed at improving the capacity and welfare of palm oil smallholders.
Ratna noted that farmers holding ISPO certification have greater opportunities to access a wide range of supporting facilities and development programs. These include human resource development, competency improvement, infrastructure support, and the Smallholder Palm Oil Replanting Program (PSR).
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The assistance also covers educational support for farmers’ children, training programs to improve workforce skills, plantation facilities and infrastructure aid, as well as support for rejuvenating aging oil palm plantations.
In addition, the government is opening opportunities for certified farmer groups to receive support for research and development activities related to the palm oil sector.
Ratna stated that ISPO implementation is not only intended as a regulatory compliance instrument but also as a strategic effort to strengthen the competitiveness of Indonesian palm oil in global markets.
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She believes that increasing the number of ISPO-certified smallholders will help improve the sustainability of Indonesia’s palm oil industry while addressing growing international demands related to environmental, social, and governance (ESG) standards.
The government is therefore continuing to encourage smallholders to commit to ISPO standards, as certification provides benefits beyond compliance by also expanding access to financial support and national palm oil development programs. (P2)
