What is ISPO (Indonesian Sustainable Palm Oil)?

ISPO (Indonesian Sustainable Palm Oil) is a policy and certification system established by the Government of Indonesia, through the Ministry of Agriculture, to ensure that oil palm plantation management is carried out in accordance with sustainability standards. ISPO is the world’s first national sustainable palm oil standard established by a country, and also serves as a reference for other palm oil producing countries considering similar schemes.

History and Legal Basis

ISPO was first established in 2009 to ensure that all oil palm business actors meet the permitted agricultural standards. This policy was then strengthened through Presidential Instruction Number 6 of 2019 on the National Action Plan for Sustainable Oil Palm Plantations, and refined through Presidential Regulation Number 44 of 2020 on the Indonesian Sustainable Palm Oil Plantation Certification System. Its operational rules are set out in more detail through Minister of Agriculture Regulation Number 38 of 2020, which replaces the previous regulation (Permentan No. 11/2015).4

Objectives of ISPO

In general, ISPO aims to: 5

• Improve the competitiveness of Indonesian palm oil in the world market
• Support the government’s commitment to reducing greenhouse gas emissions
• Ensure oil palm plantation management is economically viable, socio-culturally sound, and environmentally friendly
• Accelerate the reduction of greenhouse gas emissions in the palm oil sector

ISPO Principles and Criteria

Based on Presidential Regulation No. 44/2020, ISPO certification for large plantations covers 7 principles, 41 criteria, and 126 indicators, while for independent smallholder palm oil plantations (farmers) a simpler scheme applies, namely 4 principles, 7 criteria, and 48 indicators.6 The seven main ISPO principles cover business legality, plantation governance, environmental and natural resource management, responsibility towards workers, social and community responsibility, sustainable business improvement, and transparency.7

Certification Process

ISPO certification is carried out by independent conformity assessment bodies appointed by the government and accredited by the National Accreditation Committee (KAN).5 This process includes application, initial certification audit, periodic surveillance audits, and special audits if there are changes in the scope of business, before the certification decision is finally issued.8

Latest Development: ISPO Is Now Mandatory

The government continues to strengthen the governance of the national palm oil industry through the application of ISPO standards, which are now mandatory, as a strategic step to ensure the Indonesian palm oil industry grows sustainably while maintaining competitiveness amid the dynamics of global trade.? Minister of Agriculture Andi Amran Sulaiman emphasized that strengthening these sustainability standards is an important foundation for the future of the national palm oil industry.?

Criticism of ISPO

Although it continues to be strengthened, ISPO has also drawn a number of criticisms, especially regarding the minimal involvement of NGOs and independent auditors in its certification process. Some parties also question the extent to which the term “sustainable” in palm oil certification whether ISPO or other international schemes can truly guarantee practices that are completely free from deforestation and environmental impacts.

Relevance to the Indonesian Palm Oil Industry

ISPO is the government’s main instrument for responding to international criticism over deforestation and peatland conversion caused by oil palm plantation expansion, while also strengthening the bargaining position of Indonesian palm oil products amid global market regulatory pressures such as the EUDR (European Union). With certification status now mandatory for all business actors from large corporations to independent smallholders ISPO forms a governance foundation that determines the continued access of Indonesian palm oil to export markets in the future.

References

SDS Indonesia, “Certification – Indonesian Sustainable Palm Oil (ISPO)”, https://sdsindonesia.com/id/indonesian-sustainable-palm-oil-ispo/
Hashmicro, “The Importance of ISPO for Palm Oil Companies”, https://www.hashmicro.com/id/blog/pentingnya-ispo-untuk-perusahaan-kelapa-sawit/
School of Public Policy, Chiang Mai University, “Indonesian Sustainable Palm Oil Certification System: A Sound Policy for a Sustainable Future”, https://spp.cmu.ac.th/indonesian-sustainable-palm-oil-certification-system-a-sound-policy-for-a-sustainable-future/
4 ISPO Indonesia (Tunas Sawa Erma Group), “ISPO – Indonesian Sustainable Palm Oil”, https://tsegroup.co.id/sustainability/ispo/
5 Mutu Certification, “ISPO: Definition, Benefits, Objectives, and Certification”, https://mutucertification.com/apa-itu-ispo-serta-manfaat-dan-tujuan/
6 Journal of Nusantara Development and Community Service (JP2N), “Introduction to Indonesian Sustainable Palm Oil (ISPO) for Oil Palm Smallholders of Koto Tibun Village”, https://jurnal.yp2n.org/index.php/jp2n/article/view/18
7 Intertek Indonesia, “ISPO | Indonesian Sustainable Palm Oil”, https://www.intertek.com/assurance/ispo-ind/
8 SDS Indonesia, “Certification – Indonesian Sustainable Palm Oil (ISPO)”, https://sdsindonesia.com/id/indonesian-sustainable-palm-oil-ispo/
? MCI News, “Government Strengthens Indonesian Sustainable Palm Oil Standards for Sustainable Palm Oil”, https://mcinews.id/2026/03/10/pemerintah-perkuat-standar-indonesian-sustainable-palm-oil-untuk-sawit-berkelanjutan/
Journal of Nusantara Development and Community Service (JP2N), “Introduction to Indonesian Sustainable Palm Oil (ISPO) for Oil Palm Smallholders of Koto Tibun Village”, https://jurnal.yp2n.org/index.php/jp2n/article/view/18