By reflecting on the outcomes of previous ISPO, what kind of enabling conditions are needed to make the new ISPO work?
ince 2016, the Indonesian government has been reworking the Indonesian Sustainable Palm Oil (ISPO) certification scheme. The new ISPO is intended to further improve palm oil governance through an instrument of state-driven certification.
The revision is needed because the outcomes of previous ISPO were considered less encouraging. The fundamental changes in this reworking effort include to shift the regulation from a ministerial regulation to a presidential regulation. A question then emerges: By reflecting on the outcomes of previous ISPO, what kind of enabling conditions are needed to make the new ISPO work? This question should be answered to understand how ISPO can potentially make a change in Indonesia’s palm oil sector.
The first enabling condition should be backed by accurate and complete data on the national palm oil sector. For instance, currently, government agencies report different sizes of oil palm plantations in the country. According to Agriculture Ministry data in 2015, total oil palm plantation area is 11.24 million hectares, but based on the Central Statistics Agency (BPS), it is 10.75 million ha. Furthermore, independent research conducted by non-governmental organizations also shows a different number. For instance, according to a study by Auriga this year, the country’s oil palm plantations cover 16.64 million ha. And this is not even mentioning that other important data, such as the ownership of oil palm plantations (company, government, or smallholder), plantations in forest areas, the age of the plantations and the supply chain of businesses, are still confusing. Some of the data don’t even exist.
Without having accurate and complete data of the national palm oil sector, the government‘s policies don’t have a strong basis. This is critical in ensuring that the policies can drive a reform.
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