TEMPO.CO, Jakarta - Ministry of Industry has mandated that palm oil businesses in the downstream sector obtain Indonesian Sustainable Palm Oil (ISPO) certification by March 19, 2027, giving companies a limited transition period to prepare.
“This means that the transition period we have is less than a year to prepare all the infrastructure and supporting instruments so that the implementation of ISPO certification for the downstream sector can run optimally,” Acting Director General of Agro Industry Putu Juli Ardika said in a written statement on Saturday, April 11, 2025.
The obligation for downstream industries to undergo certification is stipulated in Presidential Regulation No. 16/2025 concerning Indonesia’s Sustainable Palm Oil Certification System, followed by its implementing regulation, Minister of Industry Regulation No. 38/2025 on ISPO certification for the downstream palm oil industry.
The ministerial regulation will take effect on May 12, 2026, and become mandatory for the downstream sector the following year.
Putu said the certification requirement is being enforced as export destination countries increasingly demand transparency, sustainability, and traceability in the sourcing of raw materials for palm oil-based products.
According to him, the success of ISPO certification in the downstream sector will be highly dependent on the readiness of derivative regulations, including the ISPO Certification Scheme and the accreditation system for ISPO certification bodies.
Indonesia’s palm oil exports, including derivative products, reached US$44.65 billion in 2025. Processed palm oil products dominated total trade with a 93 percent share. Meanwhile, imports were recorded at US$1.417 billion, resulting in a trade surplus of US$43.23 billion.
Putu said this achievement reflects the success of downstreaming policies in increasing added value and generating broader multiplier effects for the national economy. The number of palm oil derivative products has expanded significantly to 208 types in 2025, up from 48 types 14 years earlier.
The palm oil industry also plays a major role in employment, supporting approximately 16.5 million people both directly and indirectly.
Minister of Industry Agus Gumiwang Kartasasmita said the palm oil industry remains one of the main contributors to the national agroindustry.
He noted that the sector plays a strategic role in Indonesia’s economy, with crude palm oil (CPO) production reaching 51.66 million tons in 2025 across more than 16 million hectares of plantation area.
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