GREEN COMMODITIES FACILITY
INDONESIA
Sustainable Palm Oil Initiative (SPO)
Indonesia is the world’s largest producer of palm oil, with a forecasted annual growth in production
of 10%.. In 2012, it is estimated that 22 million tons of Crude Palm Oil- CPO will be produced in
Indonesia, with a total plantation area of approximately 7.65 million hectares. With this rapid
growth, palm oil is one of the priority commodities in the National Strategic Plan (Renstra) of the
Ministry of Agriculture (MoA). The need to balance growth and economic potential and
maintaining healthy ecosystems and communities is fundamental to secure the future of both
forests in Indonesia and the supply of palm oil.
The Project objective: to promote sustainable palm oil by reducing deforestation and support a
structural change in the sector
Main Partners:
Government
Private:
Other Partners:
Funding partners:
Ministry of Agriculture (MoA), Ministry of Environment, Ministry of
Forestry, Ministry of cooperation and SMEs, National Land Agency
(BPN), Ministry of Trade
Johnson & Johnson, IKEA, Mondeléz
key stakeholders in the platform includes RSPO, DINAS, PPKS, GAPKI,
Global Compact, ASPEKPI, Research and Development of Palm Oil,
RPN, IKEA, Mondeléz, Johnson & Johnson, SAWIT WATCH/SPKS, EU/SATF,
IFC, WWF, ZSL.
Johnson & Johnson, IKEA, Mondeléz, opportunity for additional funders
The national platform is a major tool for project success
5 year programme (2013-2018)
The Sustainable Palm Oil Initiative (SPO) is a major public private
partnership that supports the sustainable production of palm oil while
minimizing adverse social and environmental impacts. Based on the
baseline assessment carried out in 2011-2012, the programme is organized
around
three
strategic
components:
1) Support ISPO to achieve sustainable palm oil production in Indonesia focusing on
smallholders.
(led
by
Ministry
of
Agriculture)
ISPO is a national certification scheme which requires producers to comply with existing
regulations including technical guidance, environmental management, responsibility to
workers and social community. This component will focus on the following:


Strengthening ISPO is a crucial step given international concern over its credibility,
but is also a way to address sustainability of all farmers, and provide the opportunity
of farmers being able to meet the international RSPO standard.
Strengthening smallholder cooperatives is key to build capacity and increase
training to maximise production on existing land. The project seeks to increase the
quantity and quality of extension workers employed by the MoA system. The
training of smallholders will have a significant impact and will increase the number
of plantations that are eligible for ISPO certification.

The programme will also reinforce existing mediation mechanisms linked to land
titles and disputes resolution following government regulations
 The set-up of a National Platform for
Multi-stakeholder collaboration
Sustainable Palm Oil as well as provincial
level platforms will help to bridge the gap
The Platform was launched in
in coordination between national and December 2012 with a large
provincial authorities and will improve participation from stakeholders
collaboration between companies, NGOs across the palm oil supply chain.
and government. The National Platform was
launched in December 2012.
2) Facilitate policy change to protect forests and enhance biodiversity conservation. (led by
Ministry of Forestry, Presidential Delivery and Monitoring and Control Unit UKP4)
The aim is to mainstream biodiversity and ecosystem services in policies and practices for
land allocation for palm oil development, through improved land-use planning processes and
an increased mandate and capacity of the Ministry of Forestry.
3) Establish GHG emission monitoring systems on peatlands and palm oil plantations and
pilot the reduction of emissions through water table management. (Led by Agency for the
Assessment and Application of Technology (BPPT), and Ministry of Agriculture).
The SPO initiative will enhance the baseline and estimation of GHG emissions, including a
real time monitoring system based on indicators such as the water table level, soil moisture
and composition. Collaboration with palm oil plantations is also critical to ensure that
interventions to reduce GHG emissions are balanced with potential production impacts, and
also pilot the actual reduction of GHG emissions.
SPO will be coordinated with key stakeholders such as Ministry of Forestry, Ministry of
Environment, BAPPENAS, UKP4, REDD+ Agency, Ministry of Cooperation and SMEs, National Land
Agency, Ministry of Trade, National Standardization Agency, provincial and district governments,
the private sector, smallholders, relevant palm oil associations, CSOs and NGOs. While the platform
was launched on 20 December 2012, a lot of consultation and coordination among the different
ministries and stakeholders is occurring currently to finalize the design of the programme and the
set-up of the platform. Collaboration between the private sector and other related schemes such as
RSPO and NGO projects will be pursued.
The project is already adding value in the following ways:





Feed company good practices into government extension and ISPO
Connect ISPO with other initiatives
Progress to date
Facilitate inter-ministerial coordination
- Inaugural launch of Platform on 20
Connect
production
to
REDD+
programmes and payments
December 2012
Coordinate donor funding in the sector
- Consultation with stakeholders
- Setting up the organisation of the
Platform
partners.
- Ethiopian government fully engaged
- Platform being established