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RI’s Palm Oil Becoming More Sustainable Through ISPO

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JAKARTA –  Indonesia has been continually realizing its strong commitment to developing a sustainable palm oil industry through the implementation of the certification system of Indonesian Sustainable Palm Oil (ISPO). The certification system serves as a crucial foundation for ensuring that Indonesian palm oil industries are not only economically viable, but also socially and environmentally sound, in accordance with the prevailing laws and regulations.

ISPO functions as a system of sustainability certification, which assesses the governance and products of the palm oil industry to ensure they meet sustainability principles. Through this certification, palm oil businesses receive written assurance from the certification body that their plantations and products comply with ISPO principles and criteria.

This program is concrete evidence that Indonesia is serious about developing a transparent, responsible, and competitive palm oil industry in the global market.

ISPO Regulation from year to year

The implementation of ISPO certification does not happen overnight. The government has continuously refined the regulations on the certification since it was first issued over a decade ago:

  • 2011 – Ministerial Regulation No. 19/2011

ISPO was voluntary for palm oil companies. It focuses on legal compliance and the implementation of sustainability principles in the plantation sector.

  • 2015 – Ministerial Regulation No. 11/2015

ISPO became mandatory for palm oil companies, but remained voluntary for smallholders. Standards were improved and an ISPO Commission was established under the Ministry of Agriculture to oversee the certification process.

  • 2020 – Presidential Regulation No. 44/2020

The government has declared the ISPO certification as mandatory for both palm oil companies and palm smallholders. The focus is on improving governance and increasing global market confidence.

The certification period is set at a maximum of 5 years for companies and 7 years for smallholders, with stricter legal sanctions.

  • 2025 – Presidential Regulation No. 16/2025 (ISPO Upstream-Downstream)

The latest regulation expands ISPO’s scope of certification to the entire supply chain, from upstream sector (plantations) to downstream sector (bioenergy).

The certification has also encouraged digitalization and traceability of the supply chain, ensuring transparency from plantation to final product.

According to data from the Directorate General of Plantations at the Ministry of Agriculture (May 2025), the total areas of ​​Indonesian oil palm plantations reached 16.38 million hectares, of which 6.52 million hectares (39.8%) had been certified with ISPO.

Based on business actors:

  • 92% (6.03 million ha) are owned by private companies,
  • 7% (424,000 ha) by state-owned enterprises (PTPN),
  • 1% (67,000 ha) by independent smallholders.

These figures demonstrate that despite the dominance of the private sector, the role of smallholders continues to be strengthened to meet the same sustainability standards.

With the implementation of the ISPO Upstream-Downstream Certification System in 2025, Indonesia has asserted itself as a pioneer in the global certification system of sustainable palm oil. The harmonization of regulations and integration of global data are expected to strengthen the position of Indonesian palm oil in the international market, which has been increasingly demanding ecofriendly products.

The step will not only maintain environmental sustainability but it will also increase economic value and the welfare of communities living around the oil palm plantations. (*)

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