Hoax 13 : No Governance of Oil Palm Plantations in Indonesia
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No governance of oil palm plantations in Indonesia ?
Oil palm plantations in Indonesia are administered with reference to management principles/cultural techniques that are tailored to local conditions and the policy on basic plantation management. Each and every link in the production supply chain has standards for processing and output (Table 9.10).
The production line for fresh fruit bunches (FFBs) – from planting to cultivating and to harvesting – refers to Good Agriculture Practices and the ISO.
Table : Implementation of Oil Palm Plantation Management Systems at Corporate Level
|Good Agriculture Practices|
|Good Manufacturing Practices|
|ISO 9001 (Quality Management System)|
|ISO 14000 (Environmental Management Standard)|
|ISO 26000 (Corporate Social Responsibility)|
|SMK 3 (Workplace Safety Management System)|
|ISPO/ RSPO (Sustainable Oil Palm Plantation Certification)|
|Good Corporate Governance|
|Oil Palm Plantation Classification|
|Indonesian National Standards (SNI): Agroinput, TBS, CPO, Palm Oil, etc.|
The production line for crude palm oil at palm oil mills and even in the downstream industry also refers to Good Manufacturing Practices and the ISO, while product quality standards refer to the Indonesian National Standard (SNI).
The administration of sustainable oil palm plantations in Indonesia begins at the policy level, while the implementation of industry/plantation-level management is integrated and merged under a single system called the Indonesian Sustainable Palm Oil (ISPO). The ISPO comprises seven principles (see figure below) from which hundreds of criteria/indicators are derived.
Figure : The ISPO Administration System
Evaluating the entity-level implementation of plantation administration is carried out periodically through the SMK 3, Oil Palm Plantation Classification, SNI, ISO certification, Good Corporate Governance and ISPO/RSPO certification
Therefore, the accusation that oil palm plantations in Indonesia lacks sustainable entity-level administration is unsubstantiated. On the contrary, entity-level administration is on the right track, as it follows international standards. It is acknowledged that it is not yet ideal, as it needs much future improvement, especially in the system’s implementation at the levels of smallholdings and small- and middle-scale businesses. The question is whether other vegetable oil or agricultural commodity industries are equipped with a sustainable administration and certification system as palm oil is.