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Highlights

• PresidentialRegulationNo.44/2020ontheCertificationSystemforSustainablePalmOilPlantationinIndonesiaaimstoimproveandstrengthentheimplementationofacertificationsystemforsustainablepalmoilplantations,increasetheacceptanceofpalmoilproducts,andcontributetoreducinggreenhousegasemissions.

• TheISPOprinciplessetoutinthisnewregulationarenotmuchdifferentfromthepreviousprinciples.Theprincipleofprotectingprimaryforestandpeatlandhasbeenremovedandreplacedwiththeprincipleoftransparency.Theeliminationoftheprincipleofprotectingprimaryforestsandpeatlandsandtheexclusionofrespectforhumanrights(HAM)hasraisedconcernsthattheISPOPresidentialDecreeisnotinlinewithglobalinitiativessuchastheParisAgreementonClimateChange,Deforestation-FreePalmOil,the2030SustainableDevelopmentGoals(SDGs2030),andtheEuropeanUnionActionPlantoprotectandrestoretheworld’sforests.

• ThemostprominentchangeinPresidentialRegulation44/2020isthemandatoryapplicationofISPOforallplantationbusinessactors,includingindependentsmallholders.Thisexpansionisbelievedtofacilitatetraceabilityofpalmoilsupplytothemill,therebyincreasingtheacceptabilityandcompetitivenessofIndonesianpalmoilproductsinthenationalandinternationalmarkets.

• InsteadofincreasingthenumberofISPOcertifiedplantations,themandatoryapplicationofISPOwillactuallyexclude(discriminateagainst)independentsmallholdersbecausetheyarestillnotreadyandfacemanyobstacles,especiallymeetingaspectsoflegalityoflandstatus,businesspermitsandfunding.Theroleofthegovernment,plantationcompanies,andcivilsocietyorganizationsisveryimportanttoprepareindependentsmallholdergroupstoapplytheprinciplesofsustainability.

Introduction

Palmoilistheworld’smosttradedvegetableoilandIndonesiaisbyfartheworld’slargestpalmoilproducers.Oilpalmcoversanestimated16millionhectaresinIndonesiaandthecrophasbecomeacornerstoneitseconomy.Theoilpalmacreagehashadanaverageexpansionrateof7.9%from2014to2018andprovidesanestimated4.2milliondirectjobs,anadditional12millionindirectjobs[2].Withexportearningtotallingmorethan18billionUSDin2018,palmoilisakeysourceofforeignexchangeforIndonesia[1].Givenitsimportanceforeconomicdevelopment,theGovernmentofIndonesia(GoI)iscommittedtosupportandexpandtheoilpalmsector.However,besideseconomicbenefits,thesectorisalsofrequentlyassociatedwithenvironmentalandsocialcontroversy.Expandingoilpalmplantationsare,amongstothers,linkedwithbio-diversityloss,landconflictandreducedwell-beingforforestdependentcommunities.Theseundesirableconsequencestarnishthereputationofpalmoil,especiallyamongstNorthernconsumers.

In2004,theseconcernsledNGOsandleadingprivatesectoractorstoestablishtheRoundtableforSustainablePalmOil(RSPO),arguablythemoststringentandsuccessfulinternationalsustainabilitycertificationstandardpresentintheoilpalmsector.Answeringthecallforimprovingenvironmentalandsocialsustainabilityconcerns,andtheinitiativeinshapingsustainabilitydiscussions,theIndonesiangovernmentestablisheditsownsustainablepalmoilcertificationscheme.In2011theMinistryofAgricultureissuedregulationNo.19/Permentan/OT.140/3/2011,whichfoundedtheIndonesianSustainablePalmOilcertificationscheme,aregulationthatwassupersededbyMinistryofAgricultureregulationNo.11/Permentan/OT.140/3/2015in2015.WhereasRSPOcertificationisvoluntary,the2011and2015regulationsstatethatISPOismandatoryforoilpalmcompaniesandvoluntaryforsmallholders.UntiltheendofJune2020,621ISPOcertificateshavebeenissued,covering5,450,329ha,equivalentto38%ofIndonesia’soilpalmacreage[6].

However,inspiteofthisachievement,ISPOexperiencesconsiderabledifficultiesinsafeguardingproperimplementationandcredibility,especiallyintheinternationalarena.RecognizingtheweaknessesofISPOandacknowledgingthecallfromcivilsocietyorganizations,in2016theGoIcommencedanotherroundofstrengtheningISPO[8].ThisprocessledtoPresidentialInstructionNo.44/2020onthecertificationsystemoftheIndonesianSustainablePalmOil(ISPO)plantations,whichwasissuedinMarch2020.

New ISPO: a New Hope to Strengthen Oil-Palm Governance?

TropenbosIndonesia Infobrief-October,2020

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ThisInfobriefcomparesthepreviousISPOregulationswiththemostrecentupdate.ItprovidesananalysistowhatextendthenewregulationmayimprovetheperformanceoftheIndonesianoilpalmsectorandwhetheritislikelytoincreasethecredibilityandacceptanceofISPOinglobalmarkets.IndonesiaiscommittedtohonouritscommitmentsontheSustainableDevelopmentGoalsandgreenhousegasemissiontargetsassetattheParistreatyonClimateChangeandsupplytheworld,includingEurope,withaversatile,affordableandsustainablevegetableoil.Acredible,mandatorysustainabilitystandardappearsindispensableforthisandcrediblenewISPOregulationsmaywelldoso.

Key differences of ISPO before and after the Presidential Instruction No. 44/2020

ThenewPresidentialInstructionisclearlybasedonthepreviousISPOprinciples.However,therearesomenotabledifference.WhereastheearlierISPOregulationswereissuedbytheMinistryofAgriculture,thelatestISPOregulationswereissuedasapresidentialinstruction.Thisprovidesmorelegalandpoliticalweighttotheregulation.Article4inthenewregulationstatesthattherenewedprinciplesandcriteriaofISPOaretoincludesuggestionsandfeedbackfromcivilsocietyorganizations,academics,businessinterestsandotherrelevantstakeholdergroups.TheMinistryofAgricultureisnolongersolelyresponsibleforthedevelopmentandimplementationoftheISPOprinciplesandcriteria.However,whereastransparencyhasbeenaddedasaprincipleinthenewregulation,thereremainsmuchuncertaintyandscepticism.Thesepertainprimarilytothetransparencyindecisionmaking,theprocessofdevelopingnewprinciplesandcriteriaandtheexactinfluencestakeholdersbeyondtheMinistryofAgriculturecanexert.

ThenewregulationstatesthattheactualissuingofcertificatesisconductedbytheISPOInstituteforCertificationandtherebybecomesmoreindependentoftheGovernment.BeforetheISPOCommissionwasissuingtheISPOcertificatesandconsistedofgovernmentofficialsonly.ThenewregulationsstatehoweverthattheISPOCommissionisstillchairedbytheMinistryofAgriculture,butbesidesgovernmentofficialsalsoinvolvesbusinessentities,academiaandindependentmonitors.

Animportantchangehappenedinprinciple3,onprotectingprimaryforestsandlandpeats.Thisprinciplehasbeenchangedto‘environmentalmanagement,naturalresourcesandbiodiversity’.However,thereareconcernsthatregulation44/2020isstillinsufficienttohaltdeforestation,andsafeguardthatoilpalmvaluechainsaredeforestationfree.Themoratoriumontheuseofprimaryforestandlandpeatwereappliedalready

since2011andeventhe2018moratoriumontheissuingoilpalmlicenceshasnothaltedtheexpansionofoilpalm,asexemplifiedbyanaverage7.89%annualexpansionrateoftheoilpalmacreagefrom2014-2018.ThisexpansionmainlytookplaceinRiau,CentralKalimantan,andPapuaprovinces,wheremassiveareasthatusedtobeclassifiedbeforeasforestshaverecentlybeenreclassifiedasnon-forestland1.Althoughcareshouldbegiventhatsomeoftheseforestlandsmightnothavebeencoveredwithtreesanymore,itisclearthattherapidexpansionofoilpalmappearstocreateaconsiderable‘carbondebt’.ThisisatoddswithgovernmentcommitmentsontheNationalDeterminedContributions(NDC)thatarepartoftheParisClimateChangeagreements.

Oilpalmrelatedgreenhousegasemissionsareusuallyassociatedwithlandclearing,fertilizeruse,fuelandelectricityusedduringplantationestablishmentandoperation,andtheproductionofliquidwaste(POME)inthemillingprocess.ByexplicitlystatingadesireofreducingGHGemissions,itcanbeexpectedplantationsandmillspalmoilcontributestotheachievementofthetargetofreductionofemissionofgreenhousegases.AccordingtoRusolono(2018),oilpalmhasthepotentialtouptakeofcarbonamountedto105.90milliontonsCO2e/yearfora11.67millionhectareplantationarea,andthepotentialreductioninemissionsofGHGNDCupto21.3%ofthetargetof497milliontonsCO2e/year(target29%sectorforestry).

ThenewregulationalsostatesthatalloilpalmplantationsrequireISPOcertification,meaningthevastsmallholdersectorneedstobecertifiedaswell.Smallholdershavefiveyearsfromthepublicationoftheregulationtoachievecertification.TherewillbetheallocationofStateBudget(APBN),RegionalBudget(APBD)andotherrelevantsourcestofinancethecertificationISPOforsmallholders.

Besidesthedifferencesbetweentheoldandthenewregulation,thereisalsoanobjectionablesimilarity;theabsenceofaprincipleonhumanrights,includingtherightsofpeopleofindigenouscommunitiestoFree,PriorandInformedConsent.WhereasduringISPOdevelopmentmeetingsitwasrepeatedlyarguedbycivilsocietyorganizationsthatthisprincipleneededtobeadded,intheenditwasnotincluded,highlightingtheconcernsoftrueinclusivenessindeterminingthenewprinciplesandcriteria.BesidesFPIC,otherrelevanthumanrightsissuesnotdealtwitharelabourexploitationanddiscrimination,specificallyagainstwomen.ThisappearsamissedopportunityinworkingtowardsachievingtheSustainableDevelopmentGoals,andthecommon“Nooneleftbehind“adagio.

1Riau,1.56millionhectares;CentralKalimantan1.17millionhectares;Papua1.1millionhectares.

AwomencollectingfreshfruitbunchesinKetapang(photobyIrpanlamago)

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ISPO Certification Barriers

BystrengtheningISPOandmakingitmandatoryforallproducers,theIndonesiangovernmentwantstoincreasethevalueandacceptanceofISPOasaleadingsustainabilitystandard.However,implementationoftheISPOprovesdifficult.Somekeychallengesareidentifiedbelow.

(i) Land status

ISPOArticle8,paragraph3,statestherequirementofholdinglandrights.However,landrightsareoftencontestedandmanysmallholdersandcompanies,developedtheirplantationswithincompletelegallandownership.Thereareestimatesthatmorethan4millionhectares,meaning70%ofthetotal5.8millionhectareofsmallholderplantations,donotyethavecompletelandtitles[14].Withsuchvastnumbersnotmeetingthislegalrequirement,theimplementationofISPOcertificationwillfaceconsiderabledifficulties.

ThroughPresidentialInstructionNo.8/2018,onthedelayandtheEvaluationandLicensingPlantationPalmOilandIncreasingProductivityofPalmOilPlantationsandcommonlyreferredtoasthePalmOilMoratorium,theGovernmenthasbeentakingstepstoresolveoverlappinglandrightsofpalmoilcompaniesonforestlands,whichareestimatedtocoverapproximately3.4millionhectares.Butuntilnowtheseproblemshavenotbeensolvedbecauseofthecomplexityoftheissueandthemanyinterestsinvolvedinfindingsuitablesettlements.

Inadditiontooverlappinglandrightsissuesonforest,manyoilpalmgrowersareunwillingtofullylegalizeallthelandtheycultivateasthiswillrequirethemtopayforproperlandadministration,landandbuildingtax(PajakBumidanBangunan)andpaycertificatesforallland.Theprimaryconcernforgrowersissellingtheirproduceatareasonableprice,withoutpayingmuchattentiontoproceduresandcostsoverlandrightsorISPOcertificates.

(ii) Traceability

Whereasthenewregulationaddedtheprincipleoftransparency,itremainsunclearwhatthisentailsexactlyandtowhatextendtraceabilityofproducewillbepartofthenewregulations.IffulltraceabilityandISPOcertificationisrequired,thismaywellleadtoexclusionofsmallholdersasthesehardlyownISPOcertificatesandtheirsupplychainsarecomplex.Todatethereareonly14ISPOcertificatesforsmallholders,covering12,270hectares,or0.21%ofthe5.8millionhectaresofsmallholderoilpalmplantationsinIndonesia.

(iii) Smallholder inclusiveness

Landlegality,seedlegalityandsmallholderknowledgeonenvironmentalmanagementaremajorobstaclesforsmall-scaleoilpalmfarmerstoachieveISPOcertification[16].Theirplantationsareoftenlocatedinforestdomainandthereforetheycannotobtainlandcertificates(SuratHakMilik,SHM)orlicencestooperateanoilpalmplantation(SuratTandaDaftarUsahaPerkebunanUntukBudidaya,orSTD-B)[17].Itisestimatedthat

Table 1.ComparisonofNewandOldISPO

PresidentialInstructionNo.44/2020(NewISPO)

MinistryofAgricultureRegulationNo.11/2015(OldISPO)

Statedobjectives AssureandimprovemanagementanddevelopmentofoilpalmplantationsaccordingtoISPOprinciplesandcriteria

ImproveacceptanceandcompetitivenessofIndonesianoilpalmplantationsproductsinnationalandinternationalmarket.

Acceleratedeffortstoreducegreenhousegasemissions.

EnsuringpalmoilcompaniesapplythelawsandregulationsinIndonesia.

Contributetothereducinggreenhousegasemissions.

Principles 1.Compliancewithrulesandregulations2.Applicationofgoodplantationpractices3.Environmentalmanagement,naturalresourcesandbiodiversity

4.Responsibilitiesforworkers5.Socialresponsibilitiesandcommunityeconomicempowerment6.Applicationoftransparency7.Enhancementofbusinesssustainability

1.Plantationlegality2.Plantationmanagement3.Protectionofnaturalprimaryforestsandpeatlands4.Environmentalmanagementandmonitoring5.Responsibilitiesforworkers6.Socialresponsibilitiesandcommunityeconomicempowerment

7.Enhancementofbusinesssustainability

Institutional TheISPOcommitteeischairedbyaMinistryofAgricultureofficial,butmembersincludegovernmentofficials,businessleaders,academics,civilsocietyorganizationsandindependentobservers;

DecisionmakingoncertificationcarriedoutbytheInstituteforCertificationofISPO(thusdecreasingdependencyongovernmentbureaucracy).

TheISPOcommissiononlyconsistsofgovernmentofficials.

DecisionmakingonISPOcertificationiscarriedoutbytheISPOCommission(thusfullydependentonthegovernment).

ObligationtohaveISPOcertification

Allgrowers;companiesandsmallholders.SmallholdersarerequiredtohaveacertificateofISPOwithin5yearsafterthisregulationispublished.

OnlycompaniesarerequiredtoholdISPOcertificate.ForsmallholdersISPOcertificationisonlyvoluntary.

Penalty GivenbytheMinisterintheformofreprimandwritten,fines,freezingcertificateISPOand/orrevocationoftheISPOcertificate,revocationofbusinesslicenceofplantation,

ProvidedbytheGovernororRegentaswrittenwarnings,adowngradingofplantationclassandeventuallyrevocationofbusinesslicenses.

Financing Forcompanies,chargedtotheapplicant.Forsmallholders,fundsareavailablethroughtheStateBudget(APBN),RegionalBudgets(APBD)andotherlegitimatesources.

Chargedtotheapplicant(onlycompanies).

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only40%ofseedlingsareboughtfromlegitimatesources,whichmeansthemajorityusesillegitimateseedswhichoftenleadtoalowoilyieldpotential[19].Also,farmersgenerallydonotknowtheprinciplesofenvironmentalmanagementaccordingtoISPOstandards.Forexample,toclearland,somesmallholdersclearlandbyburningorusepesticidesatdosesthatdonotcomplywiththepredeterminedstandards.Mostoftheindependentoilpalmfarmersthinkthatgoodandcorrectenvironmentalmanagementisnotanurgentissue.TheseconditionshighlightthatindependentsmallholdersarestillnotreadytocarryouttheISPOcertificationprocess.Itisclearthatthisregulationmaywellleadtosmallholderexclusionfromtheoilpalmsectorifpropersupportisnotsupplied.

(iv) Public Participation

AkeyissueinthecurrentlackofcredibilityofISPOintheinternationalsustainabilityarenaistransparencyandpublicinvolvementintheimplementationofISPOcertification.EventhoughPerpres44/2020haslistedtransparencyasoneoftheISPOprinciples,theabsenceofindependentmonitorsaspublicrepresentativesintheimplementationofISPOcertificationlimittheleveloftrustinISPO.Independentmonitoringisfundamentaltoacrediblecertificationschemeandthegovernmentneedstobuildadialogueinvolvingallparties,includingcivilsocietygroups,tocorrectanyshortcomingsandoverseeingtheimplementationofISPO.

Options for overcoming ISPO Barriers

(i) Streamlining licensing procedures

LandlegalityissuesandbusinesslicensingprocedureshavebeenconsiderablebarriersforoilpalmgrowersinbeingeligibleforISPOcertification.However,currentlytherearenewlegalinstrumentstoresolvetenurialconflictsandresolving“theoldissues”,asforexamplePerpres88/2017,Perpres86/2018,andPresidentialInstruction8/2018.Inaddition,theGovernmenthasalsoimplementedtheOnlineSingleSubmission(OSS)system,whichelectronicallyintegratesallbusinesslicensingservicesundertheauthorityofMinisters/HeadsofInstitutions,Governors,orRegents/Mayors.Thus,legalityandlicensingshouldnolongerbeanobstacleaslongasthereisastrongpoliticalcommitmentfrombureaucrats,bothatthecentralandregionallevels,toimplementexistingregulations.

Thispoliticalcommitmentneedstobepursuitbyeachrelevantagencyinapolicythatis“breakthrough”,not“businessasusual”inordertosimplifythelicensingprocess.Forexample,accordingtothemandateofPresidentialInstruction8/2018,theMinistryofEnvironmentandForestryimmediatelyneedstoestablishapolicyandtakestepstoresolve“overdone”andoverlappingoilpalmplantationsinforestareasandtherebyprovidealegalfoundationformanysmallholderoilpalmplantations.Furthermore,theMinistryofAgrarianAffairsandSpatialPlanning/NationalLandAgencycanacceleratetheissuanceoflandrightsforthesesmallholderoilpalmplantations.Regardingbusinesslicensing,especiallyforindependentsmallholders,localgovernmentsneedtobeproactiveinregisteringindependentplantationsandfreeissuanceofSTD-B’s.

(ii) Step-wise ISPO certification for smallholders

Seeingthecurrentlevelofreadinessofthesmallholders,theimplementationofacredibleISPOcertificationwithoutexceptionsinthenextfiveyearswillbedifficult,ifnotimpossible,toachieve.AmorelogicalstepistoimplementISPOcertificationforsmallholdersinstages,whereeachstageappliestheprinciplesandcriteriathatmatchthecapabilitiesoftheindependentsmallholders.Withinthefive-yeardeadline,problemsrelatedtolegalizationandthecapacityofsmallholderoilpalmfarmerswillberesolved.Duringthistransitionalperiod,thegovernmentwillincreasethecapacityoffarmers,amongwhomfarmerswillbeprovidedwithtrainingtobeabletofullyimplementandfulfiltheISPOprinciplesandcriteria.

The roles of Stakeholders

(i) Government

ThegovernmentisveryinstrumentalinacceleratingtheprocessoflicensingthatisrequiredbythosethatneedtomeetISPOstandards.Forexample,PresidentialDecree88/2017’sscopecanbeexpandedtoresolveoverlappingoilpalmplantationsinforestareas.Likewise,theimplementationofPresidentialInstruction8/2018needstobeacceleratedtoprovidelegalcertaintyforsmallholderoilpalmplantations,whoselandstatusisoftenstillunclear.Inaddition,andasmentionedearlier,localauthoritiesneedtoactivelyregisterandissueSTD-Bs.

GettingindependentsmallholdersISPOcertifiedwillrequireconsiderableinvestments,notonlyfordirectcertificationcostsbutalsoforincreasingthecapacityofindependentsmallholdersandmobilizingtheminorganizations.Inthisregard,theroleoftheGovernmentisveryimportanttoensurethatnational(APBN)aswellasregional(APBD)allocationsmaterialize,aswellastransferringfundsfromvariousothersources,suchastheOilPalmPlantationFundManagementAgency(BPDP-KS).ThegovernmentcanalsoplayaroleinprovidingaccesstocapitalthroughPeople’sBusinessCredit(KUR),andassistinginmakingavailablesuperiorseeds,fertilizers,andotherproductiontools.

TheapplicationofISPOcertificationalsorequiresknowledgeandmanagementskills.Hereespeciallyprogresscanbemadeintheindependentsmallholdersector.TheGovernmentcanplayanimportantroleindevelopingthecapacityandinstitutionalizationofsmallholdersthroughtraininganddevelopingawell-fundedandcapableextensionservice.Thegovernmentmustalsoencourageandfacilitatetheformationofindependentsmallholderinstitutions.Again,awell-functioningextensionservicesappearsindispensable.

Currentlythesecapacitybuildingactivitiesarecarriedoutbylocalcivilsocietyorganizations.TheGovernmentcanalsotakeonaroleinmonitoringandsupervisingthosewhocarryoutcapacitybuildingforsmallfarmers.Thegovernmentneedstosetthestandardsandqualityassurance,sothatthecapacitybuildingprovidedcananswertheproblemoftheweakcapacityofsmall-scalefarmers.

(ii) Private Sector

ThetransformationprocesstowardsmoresustainableoilpalmplantationsisnotonlyintheinterestsofthegovernmentbutalsotheprivatesectoritselfasitmayimproveIndonesianpalmoil’sreputationgloballyandreduceinefficiencies.Oilpalmcompanies

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alsoplayaroleinfosteringandincreasingthecapacityofsmallholders,aswellashelpingtodevelopandstrengthensmallholderorganizations.

Inthenucleus-plasmapartnershipscheme,thecompanyhasastrongdirectinterestinISPOcertificationofitssmallholdersasitisdirectlypartofitssupplychain.Intheabsenceofapartnership,thecompanyhascorporatesocialresponsibilityforthesurroundingcommunity,includingindependentsmallholders.Companiescanfacilitateinstitutionaldevelopment,trainingonISPO,capacitybuildingandothers,sothatmoreandmoreindependentplantationswillgetISPOcertificates.

Outsideoilpalmcompanies,financialinstitutionsplayanimportantroleinprovidingfinancialassistanceonanon-collateralbasis.AnimportantrolecanalsobeplayedbytheOilPalmPlantationFundManagementAgency(BPDPKS)tofacilitatefundingforindependentsmallholderstoobtainISPOcertification.

(iii) Civil Society

CivilSocietyOrganizations(CSOs)haveanimportantroleindevelopingandfacilitatingISPOcertification.TheyarestrategicpartnersfortheGovernmenttoprovideinputtothedevelopmentofstrongprinciplesandcriteria,reportviolationsrelatedtotheimplementationofISPOcertification,andbuildpublictrust.ThesearefundamentaltoincreasingtheacceptanceofISPOasarespectedsustainabilitystandard,andtherebythecompetitivenessofIndonesianpalmoilanditsderivatives.TheexistenceofCSOsisverymuchneededbytheGovernmentandplantationcompaniestohelpeducatestakeholdersandreportonpracticesinthefield.

CSOsalsoplayanimportantroleinthecertificationofindependentsmallholders.Theyadvocateforchangesingovernancetowardssustainablemanagement,andactascommunityfacilitators.Theserolesasagentsofchangeinatransformationtowardsamoresustainablepalmoilsectorshouldbefostered.Theyaremorefamiliarwiththecharacteristics

andrealneedsofthesmallholders,wellembeddedandcandisseminateknowledgeonISPOrequirementsandfacilitatesmallholdersinachievingthem.

Recomendations

(i) TheimplementingregulationsfortheISPOPerpres,whicharecurrentlybeingdraftedbytheMinistryofAgriculture,needtoconsiderandadjustvariousrelevantlawsandregulationsrelatingtoenvironmentalprotection,includingpeatecosystemsandnaturalforests,andhumanrights.

(ii) InthepreparationofISPOCriteriaandIndicators,itisnecessarytoincludeaprohibitiononconversionofnaturalforestanddeeppeatlandforoilpalmplantations,aswellastheobligationtoprotectnaturalforests.Inaddition,itisnecessarytoconsiderthestructureofthesupplychain,includingallactors,theirconditionsandcapacities.Theapplicationoftheprinciplesandcriteriacanbecarriedoutinstageswherelegalcompliancebecomestheminimumelementofcomplianceforeachactorasaprerequisiteforsustainablepractice.

(iii)Thegovernment,oilpalmplantationcompaniesandcivilsocietyorganizationsallneedtoassistandfacilitateindependentsmallholderstoapplythesustainabilityprinciplesstipulatedintheISPOcertification.Assistanceisnotonlylimitedtocapacitybuildingandinstitutionaldevelopment,butalsoimprovingaccesstocapitalandotherproductionprerequisites,guaranteereasonableprices,andassistanceduringthecertificationprocess.Inaddition,abreakthroughgovernmentpolicyisneededtoresolvetheobstaclesfacedbysmallholdersinimplementingISPO.

(iv)TheISPOstandardmustbetteracknowledgetheinterestsofindigenouspeoples,smallholdersandvillagecommunities,andaccommodateplantationworkersandwomen’srights.Thesestakeholdersarepartandparcelofafairchecksandbalances,andnecessarytodevelopglobaltrustinISPO.

SmallholderharvestingoilpalmfreshfruitbunchesinKetapang(photobyIrpanlamago)

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References

[1] DirectorateGeneralofPlantation,2019.Indonesian Plantation Statistics 2018-2020: Palm Oil.

[2] Brodjonegoro,Bambang,2018.Bappenas : Industry Oil palm Absorption 16.2 million Tenaga Kerja.Downloadedfromhttps://bisnis.tempo.co/read/1142496/bappenas-industri-kelapa-sawit-serap-162-juta-tenaga-kerja/full&view=ok.

[3] DirectorateGeneralofPlantation,2019.IndonesianPlantationStatistics2018-2020:PalmOil

[5] FuadyAhmadH,et.al.,2014.Certification of Indonesian Biofuels and Palm Oil. Policy Brief 5/2014,CenterforResearchResourcesEasternRegionalInstituteofScienceKnowledgeIndonesia.

[6] DailyInvestorIndonesia,2020.The Government Will Not Intervene in the Issuance of ISPO Certificates.Downloadedfromhttps://investor.id/business/pemerintah-takkan-intervensi-penerbitan-sasiswa-ispo.

[7] ForestWatchIndonesia,2017.Six Years of ISPO: Studies Related to Strengthening ISPO Instruments in Responding to Negative Impacts such as Deforestation, Damage to Peat Ecosystems, Forest and Land Fires, and Tenure Conflicts.

[8] KaoemTelapakandEIA,2020.A False Hope? An analysis of the draft new Indonesia Sustainable Palm Oil (ISPO) regulation.

[9] Demadevina,N.,2020.Presidential Instruction 44/2020 on the Indonesian Sustainable Palm Oil Plantation Certification System.

[10]KaoemTelapakandEIA,2020.A False Hope? An analysis of the draft new Indonesia Sustainable Palm Oil (ISPO) regulation.

[11]RusolonoT.,2018.Oil Palm Plantation Management Innovations in Support of Climate Change Control.http://pojokiklim.menlhk.go.id/uploads/news/1539772342_

Penyorption%20karbon%20pada%20Sawit%20dan%20NDC%20_Pojok%20Iklim_TeddyR.pdf

[12]Demadevina,N.,2020.Presidential Instruction 44/2020 concerning the Indonesian Sustainable Palm Oil Plantation Certification System.

[13]Kwan,Marlis,2020.Tempest Oil in Negotiation Agreements Partnership Economic Indonesia and the Union European.https://www.mongabay.co.id/2020/08/03/prahara-sawit-dalam-negokasi-perjanjian-kemitraan-ekonomi-indonesia-dan-uni-eropa/

[14]https://www.cnbcindonesia.com/news/20181222172001-4-47622/70-lahan-sawit-tak-bersertifikasi-mungkkah-wajib-ispo.

[15]AsofnowNew12270haGardensPalmPeopleCertifiedISPO.https://sawitplus.co/news/detail/11107/Jadi-kini-baru-12270-ha-kebun-sawit-rakyat-bersCertificate-ispo.

[16]Dharmawanet.al.(2019).Readiness Petani Kelapa Sawit Governmental in Implementing ISPO: Issues Environment Life, Legality and Sustainability.JournalofEnvironmentalScience,Vol.17Issue2:304-315.ProgramStudyofScienceEnvironmentalSchoolofGraduateDiponegoroUniversity,Semarang.

[17]ISPOShouldBeaSolution,NotaBurdentoFarmers.https://www.agrofarm.co.id/2020/08/ispo-sehukah-solusi-bukan-bebani-petani/

[18]Apriyantoet.al.Analysis Readiness Farmers Governmental In Facing Draft Peraaturan President 44 Year 2020 About the Management of Oil Palm Berkelanajutan Judging Of Aspects Status of Land, Legal and Resources Seeds in Regency Indragiri Hilir.

[19]Dharmawanet.al.(2019)op.cit.

Publishedby:TropenbosIndonesia

Copyright:TropenbosIndonesia,October2020(Text may be reproduced for non-commercial purposes, citing the source)

Citation:PurwantoE,2020.NewISPO:aNewHopetoStrengthenOil-PalmGovernance?

Infobrief-October,2020.TropenbosIndonesia.Bogor.

Coverphoto:SmallholderOilPalmPlantationinKetapang,WestKalimantan

Contact:Dr.EdiPurwanto:edipurwanto@tropenbos-indonesia.org|tropenbos@tropenbos-indonesia.org

TropenbosIndonesiaJl.AkasiaIBlockP-I/6,TanahSareal,Bogor-16163,Indonesia

Phone:+62251-8316156www.tropenbos-indonesia.org

Bridging the gaps between knowledge and practices on forested landscape governance