IMPLEMENTATION OF THE INDONESIAN SUSTAINABLE PALM OIL CERTIFICATION SYSTEM (ISPO)

BACKGROUND

Indonesia Sustainable Palm Oil Certification System (ISPO) is a policy established by the Government of Indonesia through Presidential Regulation Number 44 of 2020 on the Indonesian Sustainable Certification System (“Presidential Regulation 44/2020”) and Regulation of Minister of Agriculture Number 38 of 2020 on the Implementation of Indonesian Sustainable Palm Oil Plantation Certification (“Regulation of Minister of Agriculture 38/2020”) with the purpose that all  palm oil plantation management have the appropriate standard. 

 

ISPO CERTIFICATION PRINCIPLES AND OBJECTIVES

Article 3 paragraph (1) of the Regulation of Minister of Agriculture 38/2020 explains that the implementation of ISPO certification by Plantation Company and Planters is required to ensure that Indonesian Oil Palm Plantations are sustainable.

Article 3 of Presidential Regulation 44/2020 in detail regulates the objective of having  this ISPO Certification as :

• Ensuring and to improve the management and development of Palm Oil Plantations in accordance with  ISPO principles and criteria.
• Increasing the acceptability and competitiveness of Indonesian Palm Oil Plantation Products in the national and international markets.
• Increasing efforts to accelerate the reduction of gas and greenhouse gas emissions.

 

Furthermore, Article 3 paragraph (2) of the Regulation of Minister of Agriculture 38/2020 requires the Plantation Company and Planters to carry out  ISPO Certification by applying the following principles:

1. Compliance with the law and regulation.
2. Implementation of good plantation practices.
3. Management of the environment, resource and biodiversity.
4. Manpower responsibility (especially in the case of  a plantation company).
5. Social responsibility and community economic empowerment (especially for a Plantation Company).
6. Implementation of transparency.
7. Continuous business improvement.

 

ISPO CERTIFICATION APPLICATION PROCEDURE

A Plantation Company and Planters can apply for an ISPO Certification by submitting  the following documents:

1. A Plantation Company must submit  several documents including:
   – Plantation business permit.
   – Proof of land entitlement ownership.
   – Environmental permit.
   – Determination of plantation class from the plantation business permit Authorizer.
2. Planters must attach:

• A Plantation business registration certificate.
• Proof of land entitlement ownership.
• The Statement Letter of Environmental Management (SPPL). 

Applications for ISPO Certification are sent to the  ISPO Certification Institute (“ISPO Institute”). After an ISPO Certification Application is received by the ISPO Institute,  the ISPO Institute will verify  that the application requirements are met, along with the document attached by the ISPO Certification Applicant.

In the event that the Applicant does not fulfill the requirements for the issuance of the ISPO Certificate, then the application is rejected and returned to the Applicant accompanied by the reasons for rejection.

If the Applicant have fulfilled the requirements, then the ISPO Institute and the Applicant create an ISPO Certification Agreement, before an ISPO Certificate is issued to the Applicant.

After ISPO Certification Agreement is made by the ISPO Institute and the Applicant, the ISPO Institute will then conduct Phase 1 and Phase 2 Audits prior to deciding the issuance of ISPO Certificate.

The first audit includes an assessment of:

• Review of the completeness and correctness of legal documents.
• Samples of plantations and processing businesses that will be assessed in the second audit.
• Critical points of plantations and processing businesses such as gardens with protected areas, storage areas for hazardous and toxic waste (B3), garden with a certain slope, will be examined.
• An inquiry into the parties/stakeholders selected as resource persons.

The second audit includes the assessment of:

• All documents furnished by the Applicant.
• Application of ISPO principles and criteria in plantations and processing businesses.
• Competence of the officers/employees involved in plantations and processing businesses.
• Confirmation of the application of ISPO principles and criteria to the selected parties/stakeholders as resource persons.

1 month after the audit process is complete, the ISPO Institute will issue a decision in the form of to grant / or reject the ISPO Certificate. In the event that the ISPO Institute rejects, the IPSO Certificate, the application is returned to the Applicant accompanied by reasons.

A successful  Applicant  must maintain and 

apply the ISPO principle and criteria consistently.

As additional information, the new ISPO Certification policy applies to Planters in 2025.

SANCTION AGAINST THE ISPO CERTIFICATION VIOLATION

Article 6 of Presidential Regulation 44/2020 jo. Article 58 jo. Article 61 of the Regulation of Minister of Agriculture 38/2020 states that a Plantation Business who violates the provision of an ISPO Certification obligation are subject to administrative sanctions by the Minister in the form of:

• • A Written warning.
  • Fines.
  • Temporary suspension from Palm Oil Plantation Business.
  • Freezing of an ISPO certificate.
  • Revocation of an ISPO certificate.

CONCLUSION

The implementation of  ISPO Certification is carried out so that all  palm oil plantation management have a clear  standard to comply and to guarantee sustainability of  the Indonesian Palm Oil Plantation industry.