PALMOILMAGAZINE, JAKARTA – Indonesia’s palm oil industry, long recognized as a key pillar of the national economy, continues to face mounting challenges ranging from deforestation and greenhouse gas emissions to biodiversity loss and land-related social conflicts. These issues are reinforcing the urgency for comprehensive governance reform through stronger sustainability policies.
Ermanto Fahamsyah, Professor of Economic Law at University of Jember, emphasized the need for a more comprehensive development roadmap to ensure the sector can address environmental and social concerns while sustaining its economic contribution.
Speaking at a coordination meeting on the National Action Plan for Sustainable Palm Oil (RAN-KSB) held on April 29, 2026, in Jakarta, he noted that persistent negative perceptions of the palm oil industry signal that governance reform can no longer be delayed.
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“The National Action Plan for Sustainable Palm Oil is a critical instrument to strengthen the foundation of a more sustainable and globally competitive palm oil industry,” he said.
Eight Strategic Targets for Reform
The RAN-KSB framework outlines eight key targets as benchmarks for transforming governance in the palm oil sector. These include improving the availability of accurate and integrated national palm oil data, strengthening thematic geospatial information, and enhancing the capacity of smallholders to adopt sustainable practices.
Other priorities involve boosting biodiversity conservation, reducing greenhouse gas emissions, accelerating the resolution of land disputes and social conflicts, and clarifying the legal status of plantations located within forest areas.
In addition, the plan aims to expand the number of companies and smallholders certified under the Indonesian Sustainable Palm Oil scheme, while also increasing international recognition of ISPO to improve market access for Indonesian palm oil products.
From Presidential Instruction to Presidential Regulation
Ermanto explained that the foundation for RAN-KSB was initially established under Presidential Instruction No. 6 of 2019, which covered the 2019–2024 action plan. The policy focused on improving smallholder capacity, accelerating land legalization, promoting palm oil as a renewable energy source, and strengthening Indonesia’s global palm oil diplomacy.
However, as the need for a more robust legal framework grows, the government is now working to elevate RAN-KSB into a Presidential Regulation under the Indonesian Sustainable Palm Oil (ISPO) certification system. The draft regulation includes a dedicated chapter on RAN-KSB, complete with a detailed national action matrix as an integral annex.
This shift is expected to give stronger legal standing to sustainable palm oil policies, ensuring more effective implementation across ministries, government agencies, regional administrations, industry players, and smallholders.
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Sustainability as a Competitive Imperative
With the strengthened regulatory framework for RAN-KSB 2025–2029, Indonesia’s palm oil industry is expected to better respond to global scrutiny while improving governance across key areas, including legality, productivity, environmental sustainability, and market acceptance.
Looking ahead, sustainable transformation is no longer just a sectoral necessity but a strategic imperative. As global demand increasingly favors environmentally responsible products, strengthening sustainability governance will be crucial to maintaining the competitiveness of Indonesia’s leading commodity in the international market. (P2)
