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ISPO Mandatory by 2029, FORTASBI Encourages Incentives for Independent Palm Oil Farmers



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ISPO Mandatory by 2029, FORTASBI Encourages Incentives for Independent Palm Oil Farmers

InfoSAWIT, JAKARTA — The government has officially mandated all independent palm oil farmers to obtain the Indonesian Sustainable Palm Oil (ISPO) certification starting March 2029. This provision is outlined in Presidential Regulation (Perpres) Number 16 of 2025, signed on March 19, 2025, replacing Perpres Number 44 of 2020. The Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI) believes that the four years leading up to the ISPO deadline is a short time, thus massive support must be provided.

In an official statement quoted by InfoSAWIT on Tuesday (August 12, 2025), FORTASBI emphasized the need for synergy between the government, business actors, farmer organizations, and non-governmental organizations to accelerate certification. One of the strategic steps proposed is to provide incentives for independent farmers, considering they often face obstacles related to certification costs, infrastructure improvements, and technical training. Incentives, whether in the form of financial support, technical assistance, or broader market access, are believed to help overcome these barriers.

According to FORTASBI, incentives can also motivate farmers to adopt sustainable agricultural practices, such as the use of organic fertilizers, waste management, soil and water conservation, and the prohibition of land burning. Compliance with ISPO principles and criteria is expected to help reduce deforestation rates and mitigate the risks of haze disasters and other environmental damage.

The government has several funding instruments that can be utilized to support the acceleration of certification, ranging from the Palm Oil Plantation Fund Management Agency (BPDP) funds, Special Allocation Funds (DAK), Palm Oil Revenue Sharing Funds (DBH), to grants from ministries and local governments.

These schemes can be used to cover certification audit costs, build plantation infrastructure, provide Good Agricultural Practices (GAP) training, and offer low-interest loans. On the non-financial side, intensive mentoring programs, provision of experts, and strengthening farmer institutions are key to achieving the ISPO 2029 target. (T2)


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