Abstract

Within a few decades, Indonesia has become the largest palm oil-producing country, leaving Malaysia behind. It is undeniable that palm oil has significantly contributed to the economic growth of the country. However, the negative impacts of the palm oil industry are also evident, such as deforestation, environmental pollution, and social conflicts. The palm oil industry has been known as one of the big greenhouse gasses producers, including CO2. Regardless of the pressure from the European Union, the Government of Indonesia (GOI) has committed to sustaining the palm oil industry since there are millions of workforces depend on their livelihood from these industries. Concerning the negative impacts, the GOI requests that each palm oil company has to follow the Indonesian Sustainable Palm Oil (ISPO) certification. So far, around 20% of all palm oil industries in the country have received an ISPO certificate. It is expected by 2023, all palm oil industries have been certified by ISPO since this regulation is mandatory. Implementing all ISPO guidelines in the palm oil industry is not only capable of sustaining the industry but also protecting the environment through the reduction of CO2 and other greenhouse gasses. This paper will review the CO2 management in the palm oil industry in Indonesia in the present situation, connected with ISPO as well as RSPO (Roundtable Sustainable Palm Oil).

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