Dialogue of the Palm Oil Stakeholders Lessons Learned from Palm Oil Sustainability Certification Practices

NOVEMBER 12,2019

Jakarta - Certification practice in Indonesia is a necessity. Dialogue of the Stakeholders in learning from the Palm Oil Sustainability Certification Practices is an initiative to provide stakeholders with an understanding of the process and requirements for wider acceptance of certification schemes and obtain input to improve the ISPO principles and criteria for continuous improvement. "ISPO is important for the sustainability of Indonesian palm oil," said Rusman Heriawan as an FoKSBI Advisor. In its journey from 2011 to 2019, many ISPO certification achievements have been achieved. Regardless, feedback from stakeholders related to the scope of sustainability aspects is not only considered at the cultivation level (upstream) but also at the processing (downstream). The GAPKI Declaration on "ISPO 100%" in 2020 is a clear commitment that certification benefits both environmental, social and economic aspects. To strengthening ISPO, it is hoped that all Certification Bodies will spearhead ISPO Certification, due to its independency and well-recognized by various stakeholders, both nationally and internationally. On this occasion, the Director General of Plantations, Kasdi Subagyono said that planning for oil palm development requires a strong database, but there needs to be a joint agreement in order to create an "Oil Palm Data" coordinated by the Coordinating Ministry for the Economic Affairs. The role of palm oil in Indonesia's economic development needs to be further elaborated to get a premium price if it certification obtained. ISPO also contributed to the achievement of the Sustainable Development Goals with the conformity of 12 of the 17 SDGs goals. The Dialogue of the stakeholders, it is hoped that there will be knowledge and experience sharing from the participants.

In the first session, moderated by Rismansyah Danasaputra, with the panelists was Dedi Junaedi, Director of Processing and Marketing of Plantation Product and concurrently the Secretary of the ISPO Commission, with the ISPO Certification material: Practice on the ground and update the achievements to date, then Muh. Saifullah, as Acting Assistant Deputy of Plantation and Horticulture with ISPO's Environmental Management material under the Presidential Regulation, and Director of Accreditation of the Inspection Institution and Certification Body, National Standardization Agency (BSN) with the material: Mutual Recognition Arrangements (MRA) for the acceptance of certified products in international markets, then the second session, moderated by Aisyah Sileuw, as the FoKSBI Facilitator, with the Theme of Stakeholder Expectations for Palm Oil Sustainability Standards, with panelists was representatives of the RSPO, namely Tiur Rumondang, as RSPO Operational Director in Indonesia, then Haskarlianus Pasang as Co-Chair of the ISCC Technical Committee Southeast Asia regional, and Rismansyah Danasaputra, from the ISPO Strengthening Team.

Some important issues are that the acceptance of ISPO is expected to be developed with the supply chain scheme developed by RSPO and MSPO. Because the initiation by the Ministry of Agriculture only covers supply chains up to CPO. Going forward, the ISPO Steering Board will prepare supply chain standards in collaboration with the Ministry of Industry which will cover CPO and its derivative products, 2) The obligation of one data will also include independent smallholders, 3) There must be no policy differentiation so that the growers are given a guarantee about the price of FFB, so ISPO acceptance will be even greater, 4) Countries need to be present in the fulfilment of ISPO by smallholders, although the numbers are still small, ISPO certification for farmers is not impossible. 5) going forward, in refining the Principles and Criteria, the management of ISPO-certified products will reach the organization of smallholders (Cooperative), not to the principal of oil palm or individual /independent smallholders. 6) The accreditation for ISPO certification bodies is only ISO 9001 and 14001, this will be adjusted to ISO 17065. 7) The ISCC scheme born from the EU Renewable Energy Directive (RED). In ISCC certification, the source of raw materials must comply with the standards and now ISCC-EU has been developed into ISCC Plus for non-fuel products to accommodate a wider market share. 8) RSPO and ISCC certificates are a benchmarking for ISPO to obtain gap analysis that can help increase capacity to encourage productivity, ensure market access, and higher incomes. It is hoped that ISPO will implement additional incentives in the future, such as premium prices which will be discussed by the Steering Board.

In the dialogue between the stakeholders on Learning from Palm Oil Sustainability Certification Practices, the Director General of Plantations, Kasdi Subagyono gave a number of conclusions, ISPO must learn from other schemes such as RSPO and ISCC, and greatly appreciate to ISCC and RSPO for providing input to ISPO. As of Fulfilling 12 out of 17 SDG targets, ISPO is expected to get a positive value for achieving ISPO acceptance. Dialogue between certification schemes such as RSPO and ISCC will be followed up with technical coordination. Directorate General of Plantation, Ministry of Agriculture, will send a letter to ISCC and RSPO to formally deliver constructive input to ISPO.