JAKARTA – The Head of Plantation Division at the Indonesian Palm Oil Association (GAPKI), R. Azis Hidayat, and other members of the GAPKI team, took part in a workshop to design a Roadmap for recognition of ISPO–DCF (Deforestation and Conversion Free) in the global market, including China. The workshop was organized by the Indonesian Chamber of Commerce and Industry (KADIN) in Menara KADIN, Jakarta, on Thursday (15/10/2026).^[1]

The workshop participants discussed how to strengthen the recognition of Indonesian Sustainable Palm Oil (ISPO) certificates in the global market, especially China. The efforts to strengthen such global recognition are being pursued through adjustments to the Deforestation- and Conversion-Free (DCF) framework, which requires products free from deforestation and conversion of natural ecosystems. The resulting ISPO–DCF roadmap is intended to bridge the recognition gap without asking the industry to start over.^[1]

“Hopefully, this can serve as a pathway for the acceptance of ISPO in the Chinese and global markets, as well as under the EUDR,” said Azis Hidayat.^[1]

China, strategic market for Indonesian palm oil

In her presentation, Mutiara Sari, Director of Down-streaming for Plantation Products at the Directorate General of Plantations, Ministry of Agriculture, identified China as the second-largest market for Indonesian palm oil. China’s demand for vegetable oil reaches approximately 38 million tons annually. As the country transitions toward “green” policies, there is an increasing requirement for products entering the Chinese market to provide verified evidence of sustainability.^[1]

According to Mutiara, the Indonesian Sustainable Palm Oil (ISPO) certification is a mandatory scheme established by the Indonesian government to regulate the governance of oil palm plantations. Meanwhile, the DCF is intended as a complementary verification method rather than a new certification scheme. Consequently, the ISPO–DCF approach can strengthen the ISPO framework without creating additional barriers or redundant compliance burdens for businesses.^[1]

Since ISPO already incorporates sustainability principles aligned with the Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) criteria, the primary priority is to promote the recognition of ISPO within the Chinese market. Introducing an entirely new framework would likely lead to a duplication of requirements.^[1]

ISPO certificate achievement

As of October 2026, there are 1,309 valid ISPO certificates. These are held by 1,136 plantation companies – covering approximately 5.28 million hectares of certified land – and 173 smallholder groups, covering about 160,000 hectares. In total, these valid ISPO certificates encompass 33.22% of the nation’s 16.38 million hectares of total oil palm coverage.^[1]

Through Ministry of Agriculture Regulation (Permentan) No. 33 of 2025, the ISPO scheme has integrated ESG (Environmental, Social, and Governance) principles:^[2]

• Environmental: environmental and waste management, fire control, biodiversity conservation, protection of natural forests and peatlands, as well as the inventory and mitigation of greenhouse gas emissions;
• Social: labor protection, occupational health and safety (OHS), partnerships with smallholders, facilitation of community plantation development (FPKM), and community economic empowerment;
• Governance: legal compliance, land and business legality, transparency, and continuous business improvement.

Consequently, business operators that meet all ISPO principles and criteria have effectively fulfilled the ESG elements required by investors, financial institutions, and the global market.^[1]

The gap that needs to be bridged

The workshop also mapped the differences between ISPO and the DCF criteria. Regarding land legality, traceability, geospatial data, social aspects, and verification and audit mechanisms, ISPO is considered to have a solid foundation, so the ISPO–DCF roadmap can build on what already exists. However, there are several aspects for which equivalence is not automatically established and which still require further mapping – most notably the definition of deforestation, the cut-off date, and the protection of all natural ecosystems.^[1]

A gap analysis prepared by WWF also highlights several areas for strengthening:^[1]

• full traceability down to the plantation level;
• public disclosure of information;
• grievance mechanisms accessible to third parties;
• continuous monitoring (e.g., satellite-based);
• alignment of supplier policies.

Support oil palm smallholders

Smallholders are a key focus of the ISPO–DCF roadmap. The government is preparing several interventions:^[1]

• accelerating the issuance of Cultivation Registration Certificates (STDB), verifying proof of land tenure, and resolving disputes for independent smallholders;
• mapping smallholder plantation polygons using GPS to provide verifiable geospatial data;
• establishing baseline satellite imagery and a verification mechanism to confirm compliance with the DCF requirements;
• strengthening the capacity of smallholders in Good Agricultural Practices (GAP), labor rights, and environmental protection.

Roadmap 2026–2030

The ISPO–DCF roadmap is designed as a framework for phased implementation over the 2026–2030 period. It involves a range of stakeholders, including the government, KADIN (Indonesian Chamber of Commerce and Industry), GAPKI (Indonesian Palm Oil Association), WWF China, and buyers. For palm oil companies, the practical value of the ISPO–DCF roadmap is a single, government-backed verification route that international buyers can recognise.^[1]

GAPKI anticipates that this roadmap will strengthen the credibility of Indonesia’s sustainable palm oil and unlock broader market access – extending beyond China to the global market, including compliance with the European Union Deforestation Regulation (EUDR), which applies to large and medium operators from 30 December 2026.^[3]

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