Indonesia upgrades palm oil certification to boost global standards

Jakarta (ANTARA) - Indonesia is stepping up efforts to improve its Indonesian Sustainable Palm Oil (ISPO) certification system by integrating digital supply chain data to strengthen global sustainability standards and support domestic downstream industries.

Speaking via video link at the opening of the 22nd Indonesian Palm Oil Conference (IPOC) and 2027 Price Outlook in Bali on Thursday, Coordinating Minister for Economic Affairs Airlangga Hartarto said the improvements were essential to addressing increasingly complex global market demands and strengthening national economic resilience.

"These efforts are not only essential for meeting sustainability and market standards but also for providing a solid foundation for the downstream industry," Airlangga said.

Efforts to improve the certification system come as palm oil remains a key contributor to Indonesia's economy, accounting for 5.15 percent of gross domestic product (GDP) in the third quarter of 2026.

The sector also recorded strong export performance, generating US$28.84 billion in foreign exchange earnings between January and October, a 60 percent increase year-on-year. Export volumes reached 23.8 million tons, up 6 percent from the same period in 2025.

National palm oil production is projected to reach approximately 60 million tons by the end of 2026, while domestic consumption is estimated at 27.5 million tons and exports at 35 million tons.

Highlighting the importance of land-use efficiency, Airlangga said oil palms produce approximately four tons of oil per hectare, significantly more than alternative vegetable oil crops such as soybeans, rapeseed, and sunflowers, which yield less than 0.7 tons per hectare.

To ensure that smallholders benefit from the industry, the government continues to support independent farmers through the Smallholder Palm Oil Replanting (PSR) program, infrastructure improvements, and human resource development initiatives, including technical training and educational scholarships. These initiatives aim to increase productivity without expanding plantation areas.

Acknowledging the complex challenges facing the industry, Airlangga said they also presented significant opportunities that required stronger cooperation at both national and international levels.

"Through sustained collaboration and a shared commitment, we can ensure that Indonesia's palm oil industry remains a responsible contributor to global food security, a pillar of energy security, and a source of sustainable economic resilience," he concluded.

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Translator: Subagyo, Yashinta Difa
Editor: M Razi Rahman
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