JAKARTA – The Indonesian government is revising the presidential regulation (Perpres) No.44/2020 on the system of sustainable palm oil certification called Indonesia Sustainable Palm Oil (ISPO). The revision is aimed to expand the scope of certification for the palm oil industries.
Currently, the ISPO certification is only focused on the upstream palm oil sector or on the oil palm plantations and processing of their produces.
But then the economic coordinating ministry initiated to expand the ISPO certification from just upstream to also downstream sector. The scope expansion is aimed to increase the competitiveness of palm oil products and derivatives, including those as energy products.
With the expansion, then there will be only one ISPO certification that is applied nationally. So, there will be no upstream ISPO, downstream ISPO, and supply chain ISPO.
The Indonesian government hopes the expansion of ISPO certification will increase the acceptability of palm oil products and derivatives at the global market. By having the ISPO certification, the palm oil industry players can prove to the global community that their palm oil products and derivatives are sustainable and ecofriendly, and with secured traceability.
Ermanto Fahamsyah, Assistant to the economic coordinating ministry’s Deputy in charge of Food and Agribusiness Coordination, said that the revised ISPO will consist of three sectors, namely upstream sector (plantations), downstream sector (industrial derivatives), and bioenergy.
But the revised Perpres will not contain the details for implementation, as such details will be covered in its implementing regulations that will be issued by related ministries, which include agriculture ministry for upstream sector, the industry ministry for downstream sector, and the ministry of energy and mineral resources (MEMR) for bioenergy sector.
The revised ISPO will become the government’s policy which is mandatory for all of the palm oil industry players. The revising process is now under public consultations to get inputs and views from the general public. But apparently, the revising process has not involved the palm oil stakeholders.
“The revision of Perpres ISPO shouldn’t just emerge suddenly. All industry associations should be consulted…GPPI, Apkasindo, POPSI, GAPKI, and others,” the Association of Indonesian Plantation Business Players (GPPI) Chairperson Delima Hasri Azahari said during a public discussion on ‘Strengthening ISPO Regulations for Independent Growers’ in Serpong, Tangerang Selatan, on Friday, 08 September 2023.
During the same occasion, the Association of Indonesian Smallholders (Apkasindo) Chairman Gulat Manurung had asked the government to be transparent in the process of designing the new Perpres on ISPO. “The ISPO revision shouldn’t come out of the blue…Suddenly emerged without involving the farmers in its process. We’re concerned about it as it will also impact the smallholders in its implementations,” said Gulat.
According to him, in the implementation of the old ISPO system, there are still many challenges facing the smallholders. The challenges are reflected through the realization ISPO certification in the smallholders’ plantations. So far, only around 0.31% or around 22,000 hectares from the total 6.72 million hectares owned by smallholders across the country, which managed to get the ISPO certification.
Gulat pointed out that there are six challenges of ISPO certification in the smallholders’ plantations. First, the legality problem caused by overlapping legal status between oil palm plantations and forests. Second, the smallholders’ financing problem in the process of ISPO certification. Third, the problem of mentoring, and lack of socialization and education among smallholders. Fourth, unavailability of incentives for the recipients of ISPO certificates. Fifth, the problem of using illegitimate oil palm seedlings. Sixth, the farmers have no good administration.
By considering the six challenges, Gulat doubts the smallholders will be able to meet their obligation to get the ISPO certification in 2025. (*)
Source: sawitkita.id
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