PALMOILMAGAZINE, JAKARTA — The Palm Oil Farmers Union (SPKS) is calling on the Indonesian government to fully fund the Indonesian Sustainable Palm Oil (ISPO) certification process for smallholder farmers. The organization also emphasizes the importance of providing incentives to ensure that ISPO becomes a motivation—not a burden—for farmers to adopt sustainable practices.
Speaking at the Thought Leadership Forum titled “Bridging Policy and Practice: Harmonizing Local Regulations with Global Sustainability Standards”, held at Trisakti University on Tuesday (May 27), SPKS Chairman Sabarudin addressed the challenges of ISPO implementation.
“Since the introduction of ISPO in 2011 through Minister of Agriculture Regulation No. 19, implementation among smallholders has remained sluggish. The main barrier is the lack of government funding and the absence of incentives for certified farmers,” said Sabarudin.
Also Read:
He noted that the recent issuance of Presidential Regulation No. 16 of 2025 mandates all palm oil smallholders to obtain ISPO certification. However, in practice, the costs remain prohibitive. “Right now, there’s no price difference between certified and uncertified Fresh Fruit Bunches (FFB). Despite the high cost of certification, farmers are expected to pay out of pocket, with no price premium in return,” he said.
Sabarudin highlighted that the Presidential Regulation outlines potential funding sources for ISPO, including the Palm Oil Plantation Fund Management Agency (BPDPKS), as stated in Article 16. He urged that ISPO certification for smallholders should be 100% funded by BPDPKS.
“BPDPKS manages Rp30–50 trillion annually in export levy revenues—funds that are deducted directly from smallholder FFB prices. It’s only right that this money be returned to farmers in the form of full support for ISPO certification,” he stressed.
Based on SPKS’s experience assisting farmer cooperatives, the average cost of certification per farmer is around Rp3.5 million, covering farmer profiling, good agricultural practices training, institutional strengthening, environmental assessments, internal control systems, and third-party audits.
“To certify around 3.2 million farmers managing 6.7 million hectares, the total cost would be roughly Rp15–20 trillion. This is a realistic and appropriate allocation from BPDPKS,” he added.
Sabarudin emphasized that BPDPKS was originally established to promote smallholder sustainability. Therefore, full funding for ISPO certification is not just a matter of support, but a moral responsibility to uphold the sustainability of Indonesia’s palm oil industry.
With adequate funding and incentives, SPKS believes more smallholders will be able to meet ISPO standards—enhancing their competitiveness in the global market and reinforcing the credibility of Indonesian palm oil in the face of increasing sustainability demands. (P2)
