ISPO Indonesian Sustainable Palm Oil
Update June 2021. More than 750 ISPO certificates issued for producers as of last year
More than 750 Indonesia Sustainable Palm Oil (ISPO) certificates have been issued as of last year, but the vast majority are for private corporations and state-owned plantation company PT Perkebunan Nusantara (PTPN), while smallholders remain largely uncertified.
According to Didi Junaedi, the director for processing and marketing of plantation products at the Agriculture Ministry, 735 of those certificates were for corporate entities. “There are also 20 ISPO certificates for smallholders, although it was previously voluntary,” Didi said at an online discussion on Monday.
Through the issuance of the certificates, the government seeks to address global concerns over deforestation in crude palm oil (CPO) production. Presidential Regulation No. 44 of 2020 requires smallholders to get ISPO certificates no later than 2025. For companies, the obligation under the presidential regulation took effect immediately after it was issued.
The government has been seeking to counter what it calls a campaign against Indonesian CPO over alleged environmental damage, especially from the European Union, one of the country’s major trading partners. However, the EU does not recognize the ISPO certificate.
More than one-third of the 16.38 million hectares of oil palm plantations across the country are now certified, according to Rusman Heriawan, an advisor of the National Action Plan for Sustainable Palm Oil Forum. Nearly 63 percent of the plantations owned by companies have been certified, as have nearly one-third of state-owned plantations, according to an estimate from Rusman, who in the past served as deputy agriculture minister and as the head of Statistics Indonesia (BPS).
By contrast, a mere 0.19 percent of smallholder plantations have been certified. “This is still very uneven,” Rusman admitted. “Meanwhile, we cannot exempt smallholder plantations in the context of the entire palm oil industry. It has to be everyone.”
Read full report on TheJakartaPost
More than 750 Indonesia Sustainable Palm Oil (ISPO) certificates have been issued as of last year, but the vast majority are for private corporations and state-owned plantation company PT Perkebunan Nusantara (PTPN), while smallholders remain largely uncertified.
According to Didi Junaedi, the director for processing and marketing of plantation products at the Agriculture Ministry, 735 of those certificates were for corporate entities. “There are also 20 ISPO certificates for smallholders, although it was previously voluntary,” Didi said at an online discussion on Monday.
Through the issuance of the certificates, the government seeks to address global concerns over deforestation in crude palm oil (CPO) production. Presidential Regulation No. 44 of 2020 requires smallholders to get ISPO certificates no later than 2025. For companies, the obligation under the presidential regulation took effect immediately after it was issued.
The government has been seeking to counter what it calls a campaign against Indonesian CPO over alleged environmental damage, especially from the European Union, one of the country’s major trading partners. However, the EU does not recognize the ISPO certificate.
More than one-third of the 16.38 million hectares of oil palm plantations across the country are now certified, according to Rusman Heriawan, an advisor of the National Action Plan for Sustainable Palm Oil Forum. Nearly 63 percent of the plantations owned by companies have been certified, as have nearly one-third of state-owned plantations, according to an estimate from Rusman, who in the past served as deputy agriculture minister and as the head of Statistics Indonesia (BPS).
By contrast, a mere 0.19 percent of smallholder plantations have been certified. “This is still very uneven,” Rusman admitted. “Meanwhile, we cannot exempt smallholder plantations in the context of the entire palm oil industry. It has to be everyone.”
Read full report on TheJakartaPost
May 2020. The Indonesian Sustainable Palm Oil scheme, ISPO, is a certification system which is owned by the Indonesian government with implementation under the ISPO. Background information on ISPO can be accessed through this article published by the UNDP which states among other things:
"To be trusted, standards and certification schemes need to be credible and include a transparent tracing/verification mechanism to ensure they are adhered to throughout the supply chain. An inclusive process also matters for various stakeholders to shape and own the principles they would eventually be held accountable for."
The UNDP report went on to state that:
"As part of the efforts made to address the sustainability challenge, the Indonesia’s Sustainable Palm Oil System (ISPO) was introduced in 2011 as the mandatory certification scheme intended to cover all palm oil producers in the country. Recently, the Ministry of Agriculture with UNDP support has taken the lead in analyzing the major differences that exist between ISPO and the Roundtable on Sustainable Palm Oil (RSPO), the world’s largest voluntary certification scheme for sustainable palm oil, which consumers trust most."
A comparative study between the ISPO and the RSPO was conducted in 2016 with findings that:
"Findings from the joint-study showed how ISPO and RSPO could complement each other and offer robust solutions for all stakeholders beyond what each could accomplish alone."
Since its inception in 2011, the ISPO has been slow to implement its standards across Indonesia and as of this writing, less than 20% of palm oil from Indonesia is certified by the ISPO despite the support of major palm oil companies including Wilmar , Golden Agri Resources and Musim Mas.
ISPO Credibility a Problem
Credibility of the ISPO certification scheme for Indonesian palm oil is undoubtedly its biggest problem. Weak on standards and enforcement, the ISPO has languished for years with very little action taken on its implementation.
As the demand for palm oil shrinks in 2020 due to the restrictive effects of the coronavirus, Covid19, the issue of credibility has resurfaced as Indonesia looks to revamp the standards for the ISPO.
Follow us on Twitter @CspoWatch as we track the development of the Indonesian Sustainable Palm Oil (ISPO) scheme.
The key issues on ISPO that we will be monitoring are:
1. Plasma farmers. Often quoted by the Indonesian palm oil industry as justification for the expansion of the palm oil industry in Indonesia, this report by Mongabay indicates that this excellent scheme, may be dropped in order to facilitate easier expansion of palm oil by corporate palm oil companies.
2. Human rights and traceability. This indepth report on the ISPO by Indonesian media TEMPO brings up some very good points on the credibility of the ISPO.
3. Conservation. While it is understandable that the Indonesian government has a heavy focus on alleviating poverty through its palm oil industry, the never mentioned standard for the ISPO has been conservation as we wrote in our commentary on Indonesian palm oil. If you think conservation should be a major indicator of the sustainability of Indonesia palm oil, please spare a minute and take part in our survey below.
"To be trusted, standards and certification schemes need to be credible and include a transparent tracing/verification mechanism to ensure they are adhered to throughout the supply chain. An inclusive process also matters for various stakeholders to shape and own the principles they would eventually be held accountable for."
The UNDP report went on to state that:
"As part of the efforts made to address the sustainability challenge, the Indonesia’s Sustainable Palm Oil System (ISPO) was introduced in 2011 as the mandatory certification scheme intended to cover all palm oil producers in the country. Recently, the Ministry of Agriculture with UNDP support has taken the lead in analyzing the major differences that exist between ISPO and the Roundtable on Sustainable Palm Oil (RSPO), the world’s largest voluntary certification scheme for sustainable palm oil, which consumers trust most."
A comparative study between the ISPO and the RSPO was conducted in 2016 with findings that:
"Findings from the joint-study showed how ISPO and RSPO could complement each other and offer robust solutions for all stakeholders beyond what each could accomplish alone."
Since its inception in 2011, the ISPO has been slow to implement its standards across Indonesia and as of this writing, less than 20% of palm oil from Indonesia is certified by the ISPO despite the support of major palm oil companies including Wilmar , Golden Agri Resources and Musim Mas.
ISPO Credibility a Problem
Credibility of the ISPO certification scheme for Indonesian palm oil is undoubtedly its biggest problem. Weak on standards and enforcement, the ISPO has languished for years with very little action taken on its implementation.
As the demand for palm oil shrinks in 2020 due to the restrictive effects of the coronavirus, Covid19, the issue of credibility has resurfaced as Indonesia looks to revamp the standards for the ISPO.
Follow us on Twitter @CspoWatch as we track the development of the Indonesian Sustainable Palm Oil (ISPO) scheme.
The key issues on ISPO that we will be monitoring are:
1. Plasma farmers. Often quoted by the Indonesian palm oil industry as justification for the expansion of the palm oil industry in Indonesia, this report by Mongabay indicates that this excellent scheme, may be dropped in order to facilitate easier expansion of palm oil by corporate palm oil companies.
2. Human rights and traceability. This indepth report on the ISPO by Indonesian media TEMPO brings up some very good points on the credibility of the ISPO.
3. Conservation. While it is understandable that the Indonesian government has a heavy focus on alleviating poverty through its palm oil industry, the never mentioned standard for the ISPO has been conservation as we wrote in our commentary on Indonesian palm oil. If you think conservation should be a major indicator of the sustainability of Indonesia palm oil, please spare a minute and take part in our survey below.
Update July 29, 2020. JAKARTA — An Indonesian government scheme to certify sustainable palm oil doesn’t do enough to protect human rights or the environment, and needs to accommodate input from Indigenous and forest communities, activists say. Mongabay
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