Minister of Agriculture Regulation (Permentan) No. 38 of 2020 — Implementation of Indonesian Sustainable Palm Oil (ISPO) Certification

Minister of Agriculture Regulation (Peraturan Menteri Pertanian, Permentan) No. 38 of 2020, issued by Indonesia's Ministry of Agriculture (Kementan), implements Presidential Regulation (Perpres) No. 44 of 2020 on the Indonesian Sustainable Palm Oil (ISPO) certification system. It sets the ISPO principles and criteria, the requirements and procedures for certification, guidance and supervision, certification costs and funding facilitation, and administrative sanctions.

Key points

• ISPO certification is mandatory for all oil palm plantation businesses, covering cultivation, processing of produce, and integrated operations.
• Plantation companies must apply seven principles: regulatory compliance, good plantation practices, management of the environment and biodiversity, labour responsibility, social responsibility and community economic empowerment, transparency, and continuous improvement of sustainable business.
• Smallholders are subject to five, more concise principles, which do not include labour or social responsibility and economic empowerment.
• Certification applications by plantation companies must include the plantation business licence, proof of land rights, the environmental permit and the plantation class rating (class I, II or III).
• Plantation companies must have internal auditors who understand the ISPO principles and criteria through ISPO training.
• The regulation includes detailed annexes with separate principles and criteria for plantation companies (Annex I) and smallholders (Annex II).

Who it affects

Oil palm plantation companies and smallholders engaged in cultivation, processing or integrated operations.