President Jokowi Signs Presidential Regulation on ISPO Certification System

In a bid to create an effective, efficient, just and sustainable palm oil management system and to support the economy, President Joko “Jokowi” Widodo on 13 March 2020 signed Presidential Regulation Number 44 of 2020 on Certification System of the Indonesian Sustainable Palm Oil Plantation.

Under this Presidential Regulation, the implementation of Indonesian Sustainable Palm Oil (ISPO) Certification System is aimed at ensuring and improving management and development of palm oil plantations in accordance with the ISPO principles and standards, improving acceptability and competitiveness of Indonesian palm oil plantations in national and international markets, and intensifying efforts to accelerate the reduction of greenhouse gas emissions.

With the imposition of this Presidential Regulation, palm oil plantations operated by Plantation Companies and/or Planters must be certified by the ISPO, Article 5 of this Presidential Regulation reads.

Meanwhile, Article 6 stipulates that business players violating the provisions of the ISPO Certification shall be imposed with administrative sanctions in the forms of written warnings, fines, temporary termination of palm oil plantation business, suspension of the ISPO certificates, and/or revocation of the ISPO certification.

Although palm oil plantations belonging to the public must have an ISPO certificate, according to this Presidential Regulation, the Government provides ease in funding.

Article 18 paragraph (2) and paragraph (3) stipulate that funding for the ISPO certification proposed by farmers may be sourced from the State Budget, regional budgets, and/or other legal sources, which will be channeled through the smallholders group, combined groups of planters, or cooperatives.

This Presidential Regulation also mandates the establishment of the ISPO Committee to coordinate the management and administration of the ISPO.

This Committee will comprise government elements, business associations, academicians, and independent observers such as non-governmental organizations that are Indonesian juristic persons or Indonesian citizens who are interested in plantations and have concerns in social, economic, and environmental fields.

In addition, the public, business players, and stakeholders may participate in the management and implementation of the ISPO certification.

The said participation is carried out among others by proposing and providing inputs on the management and implementation of the ISPO certification, requesting for and obtaining information related to the management and implementation of the ISPO certification, reporting misuse or irregularities in the management and operation of the ISPO certification, and/or improving acceptance and competitiveness of the ISPO in cooperation with the Government as well as increasing the country’s palm oil plantations products and their derivative products in domestic and international markets.

This Presidential Regulation shall apply from the date of its promulgation for plantation companies and 5 (five) years from the date of its promulgation for the planters. (Office of Deputy for Economic Affairs of Cabinet Secretariat/EN)

Translator: Muhardi
Reviewed by: M. Ersan Pamungkas