Mandatory ISPO Certification for Palm-Oil Businesses

In an effort to ensure that palm-oil businesses remain socially, economically and environmentally viable,[1] the President has finally issued Regulation No. 44 of 2020 on the Indonesian Sustainable Palm-Oil (“ISPO”) Certification System (“Regulation 44/2020”).

In principle, the ISPO certification system has been introduced in order to ensure and improve the management and development of palm-oil plantations, to increase the competitiveness of Indonesian palm-oil products within both the national and international marketplaces and to accelerate the goal of achieving the country’s greenhouse-gas emissions targets.[2] As a result, Regulation 44/2020 mandates that plantation businesses (“Businesses”) and growers (pekebun) must acquire ISPO certification.[3]