Companies Still Dominate ISPO Certification

The Indonesian government's commitment to sustainable palm oil development, implemented through the Indonesian Sustainable Palm Oil (ISPO) policy from 2011 to 2020, has yielded mixed results. While 566 ISPO certificates were issued by August 2019, the vast majority (98.23%, or 556 certificates) went to private companies and state-owned palm oil plantations (PTP Nusantara). A significantly smaller number were awarded to cooperatives: 1.06% (6 certificates) to independent cooperatives and 0.71% (4 certificates) to plasma KUDs (farmers' cooperatives). The total certified area is 5,185,544 hectares, with 5,179,308 hectares belonging to companies and 6,236 hectares to cooperatives.

Land ownership legality is a major obstacle to broader ISPO certification among smallholder farmers, exacerbated by reluctance to form cooperatives and funding constraints.

According to ISPO Secretariat Head, Aziz Hidayat, ISPO certification only covers half of Gapki (Indonesian Palm Oil Association) members due to low-quality company performance reports and slow government services. Furthermore, palm oil farmers oppose the presidential regulation on ISPO certificates, citing unfavorable conditions.