InfoSAWIT, JAKARTA – The Indonesian government is intensifying efforts to accelerate Indonesian Sustainable Palm Oil (ISPO) certification among palm oil companies and smallholders by providing financing support and technical assistance aimed at strengthening sustainable palm oil governance nationwide.
Ratna Sariati from the Directorate of Plantation Product Downstreaming at the Directorate General of Plantations, Ministry of Agriculture, said ISPO serves as Indonesia’s national sustainability standard to ensure palm oil plantations and processing industries operate in compliance with regulations and environmental, labor, and social standards.
“ISPO stands for Indonesian Sustainable Palm Oil. It ensures that palm oil and its derivative products are produced through plantation and processing practices that comply with regulations, environmental standards, labor requirements, social aspects, and proper governance,” Ratna said.
She emphasized the strategic role of the palm oil industry in Indonesia’s economy, noting that the sector directly employs around 2.5 million workers and supports more than 12 million indirect jobs.
“Palm oil does not exist in a vacuum. This industry provides livelihoods for millions of people, and its future remains promising,” she said, as quoted by InfoSAWIT from Small Talk Fortasbi on Tuesday (12/5/2026).
Government Facilitates ISPO Certification Costs
Ratna stressed that the government has prepared multiple support schemes to help smallholders meet ISPO requirements, including funding for documentation, technical mentoring, certification fees, and training programs.
“Smallholders should not worry, but they must commit to implementing ISPO standards. The government supports them through financing facilitation for certification requirements, mentoring, certification costs, and educational programs,” she explained.
Funding sources include the Palm Oil Plantation Fund Management Agency (BPDP), state and regional budgets, and Revenue Sharing Funds (DBH).
The assistance can be used to complete administrative requirements such as Plantation Cultivation Registration Certificates (STDB), environmental management statements (SPPL), and plantation business development programs.
Smallholders Encouraged to Coordinate with Regional Governments
Ratna also reminded farmer groups that access to DBH funding is coordinated through regional governments, urging smallholders to actively engage local authorities so certification assistance can be included in regional budget planning.
“Applications are submitted through regional governments because the funds are transferred to local administrations. Regional governments will then determine allocations for mentoring and certification activities,” she said.
She acknowledged that many smallholders remain concerned about certification costs and recurring ISPO audit requirements. However, the government remains committed to supporting smallholders through sustainable financing and assistance programs.
“The government is committed to supporting financing and mentoring. In addition, many NGOs and development partners are actively assisting smallholders in achieving sustainable palm oil certification,” Ratna concluded. (T2)
