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Enhancing Indonesian Sustainable Palm Oil (ISPO) certification’s acceptance in the international market
As the sustainable development and its three pillars (economic growth, environmental protection and social integrity) arises in the international discourse, the issue of sustainability gains currency in an all-encompassing field. The notion of sustainability standard has entered into international trade through certification. Especially in the international trade of nature-based commodities, such as forestry, fisheries, agriculture (including palm oil) to ensure that the whole chain of production would conform with sustainability criteria that would play an important role in the achievement of the United Nations Sustainable Development Goals (SDGs) in 2030.
Many countries and regions have recently imposed their policies on sustainable standards such as “deforestation free products” of the European Union (EU), “mandatory due diligence” of the United Kingdom, and “the Forest Act Bill” of the US.
As the world’s largest crude palm oil (CPO) producer – supplying around 59% of the global demand –, Indonesia needs to have an internationally accepted sustainability certification for its palm oil products. Hence, since 2011 Indonesia has developed the Indonesian Sustainable Palm Oil (ISPO) certification system (Minister of Agriculture Regulation No.19/2011). It has been over a decade since the ISPO was first initiated. However, ISPO still has a low acceptance in the global market. Meanwhile, the Indonesian Ministry of Foreign Affairs and its missions overseas are expected to play a role in promoting the ISPO to the global market to enable Indonesian CPO to gain broader access to the international market.
Therefore, it is a fair time to review of where is the position of ISPO and, moving forward, which direction it needs to go? This paper, thus, will explore, what are the (possible) causes of its low acceptance in the international market? What should be done domestically and internationally to increase the acceptance of ISPO? What policy recommendations (based on the literature review, analysis and interviews) can we draw?
| 2022-0057 | Sesparlu 70-2022 | Training Materials Repository | Tersedia |
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