Challenges and possibilities of implementing sustainable palm oil industry in Indonesia

Abstract

Indonesia has emerged into the largest palm oil-producing nation in just a few decades, leaving Malaysia behind. Undeniably, palm oil has substantially contributed to the country’s economic development. Nonetheless, it comes with refutation for deforestation, environmental degradation, and social tensions, are also evident. The palm oil industry has been recognized as one of the major producers of greenhouse gases, including CO2. The Government of Indonesia (GOI) is committed to maintaining the palm oil industry, despite the strain of the European Union, as millions of workers depend on these industries for their livelihoods. The GOI requests that each palm oil firm pursue the Indonesian Sustainable Palm Oil (ISPO) certification regarding the adverse impacts. Around 20% of the country’s entire palm oil industry has received an ISPO certificate. By 2023, all palm oil companies must be ISPO accredited, as this regulation is compulsory. By reducing CO2 and other greenhouse gasses, implementing all the ISPO guidelines in the palm oil industry will support the industry and protect the environment. This paper will review the implementation of sustainable Indonesia’s palm oil industry under the current situation, corresponding with ISPO and RSPO (Roundtable Sustainable Palm Oil).