JOURNAL MONITOR EDITION 19 : THE NEW CONCEPT OF SUSTAINABILITY IN ISPO FOR THE PALM OIL INDUSTRY MORE SUSTAINABLE AND COMPETITIVE
Journal Pages Number
Journal Document Type
To respond to the negative campaign and global consumer demands related to sustainable issues, the Indonesian government arrange a national standard in order to realize sustainable palm oil plantations, namely the ISPO. In 2020, the Government of Indonesia issued the ISPO Presidential Regulation as a complement to Ministry of Agriculture Regulation 11/2015 in the context of strengthening ISPO by accommodating the dynamics of the global market and increasing the adoption of SDGs values.
Various regulations as national guidelines or standards related to Indonesia’s sustainable palm oil system are quite comprehensive, but there are points that can be criticized from the concept of sustainability adopted in ISPO (and other sustainable certification systems) such as the concept of absolute and segregated sustainability, have not yet covered palm-based processed products and supply chain mechanism until the obstacles in realization faced, both by farmers and oil palm plantation companies. Therefore, policy recommendations are needed as a solution to critics of the sustainability concept adopted in ISPO or other sustainable certification systems.
To increase the realization of ISPO in order to realize the vision of a sustainable and competitive national oil industry in both the national and international markets, the following are a number of recommendations as a solution to the criticism of the concept and implementation of the sustainability certification system.
Policy recommendations that can be adopted by ISPO by using the concept of relative sustainability by accomodating the principle of degree of sustainable which shows differences in the quality of sustainability and adjusted to the capabilities of the plantation business actors, both of companies and farmers. This relative concept is also a solution for variations in market segments that have different willingness to pay for the sustainability attributes of the product.
ISPO must also using an ecosystem approach that not only evaluates one oil palm plantation plot, but all components in the ecosystem including biodiversity therein. In addition, the sustainability assessment must also cover the entire supply chain mechanism and palm oil-based products produced from the supply chain, so the products that can be labeled with ISPO Certified Product.
It is expected that coordination in formulation to the implementation of policies related to land legality and plantation business mandated by Presidential Instruction 6/2019 can immediately resolve the main problems that are the cause of the lower realization of ISPO. Settlement of the legality of smallholder oil palm plantations can be done through Tenure Policies such as amnesty, Social Forestry and Land for Agrarian Reform Objects.
In addition to the legality of land and oil palm cultivation businesses, oil palm farmers must also be incorporated in a legal legal group or institution, such as the area of oil palm smallholders, so they can facilitate access of smallholders palm oil farmers to various assistance such as ISPO or PSR funds, at once too aims to strengthen them.
Policy recommendations as a solution related to obstacles in implementing partnerships for plantation companies are reformulating partnership patterns that are made more varied or not limited to the nucleus-plasma pattern. Although the partnership pattern does not have to be in the field of oil palm plantations, through the partnership of plantation companies and local communities can meet the ISPO principles in the context of community economic empowerment.