Presidential Regulation (Perpres) No. 16 of 2025 — Amendment to Perpres 44/2020: Extension of ISPO to Downstream Industry and Bioenergy

Presidential Regulation (Peraturan Presiden, Perpres) No. 16 of 2025, issued by the President of Indonesia, replaces Perpres No. 44 of 2020 and broadens the scope of Indonesian Sustainable Palm Oil (ISPO) certification. ISPO previously applied only to plantations; it is now also mandatory for the downstream palm oil industry and for palm-based bioenergy businesses. The regulation emphasises supply chain traceability from upstream to downstream and sets administrative sanctions for businesses that fail to meet the certification obligation.

Key points

• Wider scope of ISPO certification: covers oil palm plantation businesses (cultivation, processing of produce, or both combined), the downstream palm oil industry, and palm oil bioenergy businesses (palm-based biofuels, biomass and/or biogas).
• Different principles per sector: plantations are subject to seven principles (including environment, labour and social responsibility), while the downstream industry and bioenergy are subject to three principles: legal compliance, traceability, and continuous improvement of sustainable business.
• Supply chain requirement: ISPO certification applications by downstream industry and/or bioenergy companies must include ISPO certificates for oil palm plantation businesses as part of the application documents.
• Certification bodies: ISPO certification is carried out by ISPO certification bodies that must be accredited by the National Accreditation Committee (KAN).
• Administrative sanctions: businesses that breach the ISPO certification obligation may face written warnings, administrative fines and/or temporary suspension of business activities.
• Group certification: smallholders may apply for ISPO certification as a group, through smallholder groups, associations of smallholder groups or cooperatives.

Who it affects

Smallholders, plantation companies, downstream palm oil industry companies and palm oil bioenergy companies.