InfoSAWIT, JAKARTA – The Indonesian government is strengthening the implementation of Indonesian Sustainable Palm Oil (ISPO) certification by preparing various incentive schemes for oil palm smallholders that adopt sustainable plantation practices.
Ratna Sariati from the Directorate of Plantation Product Downstreaming at the Directorate General of Plantations under the Ministry of Agriculture stated that while Indonesia has yet to implement a premium pricing scheme similar to the Roundtable on Sustainable Palm Oil (RSPO), ISPO-certified smallholders will receive priority access to government support programs.
“The government is moving in that direction, although not yet through premium pricing like RSPO. The incentives currently focus more on priority assistance for groups or smallholders that have obtained ISPO certification,” Ratna said, as quoted by InfoSAWIT from Small Talk Fortasbi on Tuesday (May 12, 2026).
She explained that the support would be distributed through programs managed by the Palm Oil Plantation Fund Management Agency (BPDP), particularly initiatives aimed at improving smallholder capacity and welfare.
Ratna added that ISPO-certified smallholders would have greater opportunities to receive assistance programs, including human resource development, competency training, infrastructure support, and participation in the Smallholder Palm Oil Replanting Program (PSR).
“For example, educational support for smallholders’ children, workforce competency improvement, infrastructure assistance, and support for PSR or palm oil replanting programs,” she explained.
In addition, the government is also opening opportunities for smallholder groups to access support for research and development activities in the palm oil sector.
Ratna emphasized that ISPO implementation serves not only as a regulatory compliance instrument but also as a strategic measure to strengthen the competitiveness of Indonesian palm oil in the global market.
With more smallholders expected to obtain ISPO certification, the government hopes Indonesia’s palm oil sector will become increasingly sustainable and better positioned to meet international market demands related to environmental, social, and governance (ESG) standards.
The government also continues encouraging smallholders to commit to ISPO standards, as certification can provide broader access to national palm oil support and financing programs. (T2)
