PALMOILMAGAZINE, JAKARTA – Indonesia has entered a new phase in its palm oil sustainability framework, as Regulation of the Minister of Industry No. 38/2025 signals a significant shift in policy direction. What may appear as a technical rule actually reflects a deeper transformation—sustainability is no longer confined to plantations but must extend throughout factories and the broader supply chain.
During a recent discussion in Jakarta attended by civil society organizations, conversations highlighted how sustainable palm oil practices are now moving beyond upstream operations into downstream sectors.
Government representatives used the forum to explain the intent behind the new regulation, conveying a clear message: Indonesia is shifting the burden of sustainability from being solely a “plantation responsibility” to becoming an “industry-wide responsibility.”
Also Read: Indonesia’s KPBN CPO Price Edges Higher as Global Market Moves Sideways
The Minister of Industry Regulation No. 38 of 2025 on Indonesian Sustainable Palm Oil (ISPO) Certification for the palm oil industry may sound administrative. However, behind its formal title lies a fundamental change in how sustainability is viewed—no longer limited to farmers, estates, or plantation companies.
Instead, sustainability requirements are being extended downstream to include processing plants, refineries, biodiesel producers, oleochemical industries, and even animal feed sectors.
Citra Rapati from the Directorate of Agro, Oleochemical, and Feed Industry (IKOP) emphasized that the regulation is a key part of strengthening Indonesia’s palm oil industry development.
Also Read: Farewell, Birutė Galdikas, the Woman Who Dedicated Her Life to Orangutans
She added that the initiative is closely linked to a broader policy revision. The previous Presidential Regulation No. 44/2020 has now been updated to Presidential Regulation No. 16/2025, with a clear objective: to expand the scope of ISPO implementation across the entire palm oil value chain. (P2)
