Indonesia plans to extend the Indonesian Sustainable Palm Oil (ISPO) certification scheme across its palm oil processing industry, Vietnam Plus reports.
Under current regulations, ISPO certification would become mandatory for downstream palm oil businesses by 2027, following Presidential Regulation No 16/2025 and related implementing rules, the 14 April report said.
The move was aimed at enhancing sustainability governance and boosting the sector’s global competitiveness, Vietnam Plus wrote.
Indonesia is the world’s largest palm oil producer and exporter and the industry is a key pillar of the national economy, with more than 16M ha under cultivation and crude palm oil (CPO) output of 51.66M tonnes in 2025, the report said.
According to the Indonesian Ministry of Industry, the move would ensure that the entire palm oil value chain complies with sustainability standards.
Indonesian Minister of Industry Agus Gumiwang Kartasasmita said the initiative –implemented through the certification mechanism of Indonesia’s National Accreditation Committee (KAN) – was designed to improve domestic production standards and also help Indonesia maintain and expand its market share amid increasingly stringent global sustainability requirements.
Acting director-general of agro industry at the Ministry of Industry, Putu Juli Ardika, said that export earnings from palm oil and its derivatives reached US$44.65bn in 2025, while imports totalled US$1.417bn, generating a trade surplus of US$43.23bn.
