Indonesia and Malaysia Step Up Sustainability Amid Global Deforestation Scrutiny

Palm Oil Magazine
Illustration of oil palm plantations. Photo by: Sawit Fest 2021 / Bernadus Ritchard

PALMOILMAGAZINE, KUALA LUMPUR – The United Kingdom has come under scrutiny in a recent report by Global Witness, which exposes its contribution to tropical deforestation. Between November 2021 and December 2024, the UK was linked to the loss of 12,856 hectares of forest—an area equivalent to the size of Liverpool—primarily to meet its demand for livestock products from Brazil.

The report, cited by CSPO Watch on Friday (April 11, 2025), also traced deforestation to UK demand for Brazilian soy (2,494 ha), palm oil from Papua New Guinea (6,727 ha), Indonesia (4,249 ha), and cocoa from Côte d’Ivoire (4,875 ha).

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In response, British Labour MP Anna Gelderd urged the government to fast-track strong environmental legislation. “We cannot stand by. Concrete action is needed to ensure supply chain transparency and human rights protections,” she stated.

Also Read: Minister Sri Mulyani Responds to Global Pressure with CPO Export Levy Cut

 

Indonesia Expands ISPO: Entire Palm Oil Supply Chain Now Subject to Certification

Amid growing global concern over deforestation, Indonesia has taken a significant step by expanding the scope of its Indonesia Sustainable Palm Oil (ISPO) certification. As of March 2025, ISPO regulations no longer apply solely to plantations but now include downstream industries and palm-based bioenergy.

According to the latest regulations reviewed by Palmoilmagazine.com, compliance is mandatory. Article 2 stipulates that all businesses involved in palm oil cultivation, processing, and biodiesel production must adhere to national sustainability standards. Violations may result in serious consequences, including written warnings and temporary suspension of operations.

 

Malaysia Launches MSPO 2.0 in Response to EU Deforestation Law

Malaysia is also reinforcing its sustainability agenda. The government, through Plantation and Commodities Minister Johari Ghani, has introduced the Malaysian Sustainable Palm Oil (MSPO) 2.0 standard, effective January 1, 2025. A key provision includes a deforestation cut-off date: only land untouched by clearing after December 31, 2019, will be eligible for certification.

This policy also serves as a direct response to the European Union Deforestation Regulation (EUDR), which many see as burdensome for exporting countries—especially smallholder farmers.

Through these initiatives, both Indonesia and Malaysia demonstrate their serious commitment to addressing global criticism and transforming the palm oil industry toward more responsible and sustainable practices. (P2)

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