PTPN IV PalmCo is expanding sustainability certification across its operations, while stronger sales of certified CPO and PKO highlight growing opportunities to capture premium value from sustainable palm oil.
PALMOILMAGAZINE, JAKARTA — PT Perkebunan Nusantara IV (PTPN IV) PalmCo is accelerating the implementation of sustainability standards across its operations, with 67 palm oil mills and 124 estates certified under the Roundtable on Sustainable Palm Oil (RSPO) as of August 2026.
The expansion of sustainability certification is being pursued alongside efforts to strengthen operational governance and create greater value from palm oil products. Through September 2026, sales of certified crude palm oil (CPO) and palm kernel oil (PKO) that generated premium prices increased 148% year-on-year (YoY).
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According to a company statement, PTPN IV PalmCo President Director Jatmiko K. Santosa said sustainability certification forms part of the company’s broader governance transformation.
He stressed that sustainability standards should go beyond administrative compliance and become embedded in daily work systems and operational activities.
“We see certification as part of governance transformation. The standards we implement must become a real working system, integrated into operations and capable of ensuring that every process is carried out consistently, efficiently and responsibly,” said Jatmiko in a company statement published by PalmOilMagazine on Monday, October 26, 2206.
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Consistent implementation of sustainability standards is expected to improve operational management while strengthening stakeholder confidence in the company. Meanwhile, the sharp increase in certified product sales indicates that sustainability practices can increasingly be linked to economic value creation.
PalmCo Expands ISO and Occupational Safety Standards
Beyond RSPO certification, PalmCo is expanding the implementation of management standards covering quality, environmental management, occupational health and safety, food safety and anti-bribery practices.
As of August 2026, ISO 9001 Quality Management System certification had been implemented across 176 units. ISO 14001 Environmental Management System certification covered 143 units, while the Occupational Health and Safety Management System (SMK3) had been implemented across 191 units.
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In other areas, ISO 22000 Food Safety Management System certification was implemented at three units, while ISO 37001 Anti-Bribery Management System certification covered eight units.
The various standards form part of PalmCo’s efforts to establish a more measurable and integrated management system. Each standard serves a distinct function, ranging from product quality control and environmental management to worker safety, food safety and business integrity.
Circular Economy Becomes Part of ESG Strategy
PTPN IV PalmCo Strategy & Sustainability Director Ugun Untaryo said the expansion of certification is closely linked to the company’s implementation of Environmental, Social and Governance (ESG) principles.
One of the approaches being developed is a circular economy model focused on optimizing the utilization of palm oil waste and by-products.
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Ugun said ESG integration must translate into concrete initiatives that deliver economic benefits while reducing environmental impacts.
“ESG implementation does not stop at meeting standards. It is about integrating these principles into business processes. One approach is to implement a circular economy by optimizing the utilization of palm oil waste, creating additional economic value while reducing environmental impacts,” Ugun said.
In the palm oil industry, circular economy practices offer opportunities to reuse processing by-products and improve resource efficiency. Such initiatives can help reduce waste while unlocking additional economic potential from plantation and milling activities.
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Certified Palm Oil Products Open Opportunities for Premium Prices
The 148% YoY increase in sales of certified CPO and PKO generating premium prices through September 2026 represents an important indicator of PalmCo’s growing sustainable-product business.
The increase highlights the potential for sustainability-certified products to generate additional value for the company. The level of premiums, however, remains dependent on market conditions, buyer requirements, certification schemes and individual transactions.
PalmCo plans to continue accelerating certification while strengthening ESG integration throughout its operations. The strategy includes improving corporate governance, environmental management, resource efficiency and the development of circular-economy initiatives.
Through these efforts, PalmCo aims to ensure that its plantation and palm oil processing operations deliver not only economic benefits but also stronger environmental performance and long-term business sustainability. (P2)
