Overview

Indonesia is a dominant player in the global palm oil market and its Indonesian Sustainable Palm Oil  (“ISPO”) certification scheme is one of the largest in the world – representing nearly 40% of global certified palm oil production.[1] While palm oil has been a significant contributor to Indonesia’s foreign exchange earnings, particularly as the country’s largest non-oil-and-gas export in 2023, its environmental impact has also raised concerns.[2] In this regard, deforestation, biodiversity loss and greenhouse gas emissions are increasingly associated with palm oil plantations, despite a growing demand for sustainably sourced palm oil among international buyers.

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