GAKPI (15/06/2025) - JAKARTA – The ministry of industry (Kemenperin) is drafting a ministerial regulation as an implementing regulation of the newly-issued presidential regulation (Perpres) No.16/2025 on certification of Indonesian Sustainable Palm Oil (ISPO) for Indonesia’s downstream palm oil industries. The expansion and improvement of the ISPO certification is expected to spur the development of palm oil industries in the country.

Kemenperin’s Agroindustry Director General Putu Juli Ardika said that his ministry is now in a process of drafting a ministerial regulation on technical guidelines of ISPO certification for downstream palm industries.

The ministerial regulation will function as an implementing regulation to the Perpres No.16/2025 on certification system of ISPO in Indonesia. “The Perpres has been issued. Now, we’re preparing its implementing regulation on the ISPO certification. It’s still under process,” said Putu.

He said that as part of efforts to  strengthen the ISPO certification system, they are developing an information system of palm oil products and derivatives, which can provide real time information on products and transactions in domestic palm oil markets. “Hopefully, in the future that system will provide us with accurate and reliable data. We will be also able to help raising productivity of industrial companies. The system should also become an important instrument for realizing transparency and efficiency in the palm oil supply chain,” he said.

The ISPO certification is legally based on the law (UU) No.39/ 2014 on plantations, whose implementation is stipulated in Perpres No.44/ 2020 that has been revised with the Perpres No.16/2025.

Previously, Head of the Substance Group for Implementation and Supervision of Plantation Product Quality at the agriculture ministry (Kementan), Ratna Sariati said that  ISPO certification stands as a system to ensure that palm oil businesses are properly conducted from the perspective of economy, socio-culture, environment, and prevailing regulations.

The policy revision covers the expansion of obligation of ISPO certification from just upstream to downstream, including the processing industry and bioenergy. “Based on the policy revision, ISPO certification is not only the responsibility of Kementan, but also Kemenperin for downstream palm products and ministry of energy and mineral resources (KESDM) for bioenergy,” she said.

The expansion of certification obligation is accompanied by institutional restructuration and new scheme of financing. “The certification of ISPO for growers can be financed through APBN (state budget), APBD (regional budget), and the Plantation Fund Management Board (BPDP),” she said. (*)

Read more at https://gapki.id/en/news/2025/06/15/govt-strengthening-ispo-in-downstream-palm-sector/