- ISPO, Indonesia’s national certification scheme, is the world’s largest palm certification scheme
- National certification schemes in Indonesia and Malaysia cover an area greater than South Korea
- ISPO’s legality requirements can assist in meeting EUDR requirements
ISPO – Indonesia Sustainable Palm Oil, Indonesia’s national palm certification scheme – is the world’s largest palm oil certification program in the world, covering 5.68 million hectares. This achievement not only demonstrates Indonesia’s dedication to responsible palm oil production but also positions palm oil as the most certified agricultural crop globally.
To put this into perspective, Malaysia’s national certification scheme covers around 5.6 million hectares, which is the country’s entire palm estate. Combined, these two major palm oil-producing countries have certified over 11 million hectares of palm oil plantations. This compares also with around 4.9 million ha certified globally under the RSPO – with many plantations in Indonesia and Malaysia holding two certifications.
The magnitude of this certification goes beyond any other agricultural commodity, making palm oil a leader in legal and sustainable crop production.
ISPO certified area is equal to the area of Croatia and covers more than one-third of Indonesia’s total palm oil plantations — an area ten times the size of Bali. Combined, ISPO and MSPO certified area is larger that South Korea.
More than 1,000 plantation organizations, including smallholders, cooperatives, and companies, are ISPO certified. Combined ISPO certified farms produce around 40 million tonnes of palm oil annually, representing almost 40% of global palm oil production.
ISPO is backed by robust principles, criteria, and indicators that address environmental, social, and economic aspects of palm oil production.
What sets ISPO apart is its inclusive approach, particularly towards smallholders. As the world’s first sustainability standard to meaningfully include smallholders, ISPO provides a pathway for Indonesia’s 2.6 million smallholders to become certified. This inclusive strategy, supported by government financial mechanisms, ensures that sustainability practices reach all levels of the palm oil industry.
The significance of ISPO will continue to grow with the implementation of the EUDR (EU Deforestation Regulation). The European Forest Institute (EFI), an EU-funded NGO recently undertook a study to assess how the ISPO can assist with EUDR compliance.
Although the ISPO does not presently meet the requirements for the EUDR’s deforestation cut-off date, the system requires a full audit for legality – meaning that independent auditors must check the legal documentation requirements for each firm being certified.
But ISPO is not just about compliance. The certification scheme aligns with the UN Sustainable Development Goals, covering crucial areas such as poverty alleviation, zero hunger, health and well-being, education, gender equality, and climate action. This comprehensive approach ensures that ISPO certified palm oil contributes to broader sustainable development objectives.