JAKARTA – Presidential Regulation (Perpres) No.44/2020 on certification system of Indonesian sustainable palm oil (ISPO) obliges all of Indonesian oil palm plantations to have sustainability certification by the year 2025. But, many smallholders are facing difficulties in getting the certification due to the legal problem of their plantation sites.
The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that until now the total plantation areas which have already secured ISPO certification reached 4.21 million hectares as compared to Indonesia’s total oil palm plantation areas of more than 16 million hectares. The 4.21 million hectares consist of 3.94 million hectares owned by plantation companies with 786 certificates and 270,809.15 Ha owned by smallholders. Apparently, the ISPO certification is still a burdensome for both palm plantation companies and smallholders to realize.
Eddy Martono said that there are at least 6 problems that caused the low realization of ISPO certification, especially for smallholders. “First, they are hindered by the cost of certification. Second, the overlapping problem of oil palm plantations and forest areas. Third, unavailability of evaluation of plantation business as one of requirements for certification, as not all regional governments get financial allocation needed for such purpose.
“Fourth, getting environmental licenses (including waste disposal and treatment) will take longer time and various amounts of costs,” he said during a public discussion on prevention of maladministration in the services of palm oil governance in Jakarta on Monday (27/5/2024).
He said the fifth problem is concerned with the revision of the Perpres No.44/2022 on ISPO certification, which is expanded to downstream palm oil industries as part of effort to increase its global acceptability. “But after two years, the revision of the Perpres is not yet completed,” he said.
The sixth problem, the ISPO secretariat to support ISPO Committee in implementing policies and evaluating the ISPO certification has not yet functioned effectively, because it has no clear support of financing for its operation.
“The main problem is that the implementation of ISPO certification needs funding. There should be financing for smallholders. We’re informed that the ISPO secretariat is not financially supported. We really need the well implemented governnance, so that it won’t confuse the industry players,” he said.
Regarding the ISPO, expert staff at the directorate general of agroindustry of the industry ministry, Laila Harsyah said that they are still in a process of finalizing the revision of ISPO regulation.
“We’re also assigned to manage the traceability and sustainability of products from downstream palm oil industries and their supply chains in the revision draft of Perpres 44/2020. Hopefully, it can be issued in the near future,” she said. (*)
Source: sawitkita.id
