Interests Arrangement in the Implementation of Indonesian Sustainable Palm Oil Certification: Case Study of Sari Makmur Palm Oil Smallholders in Riau Province

Abstract

AbstractThe implementation of the Indonesian Sustainable Palm Oil (ISPO) certification remains unsettled nearly a decade since its introduction in 2011. Only a small number of palm oil companies and smallholders have been ISPO certified. Palm oil smallholders became the target of ISPO certification because of their significant contribution to the Indonesian palm oil industry. This study aims to analyze the slow ISPO implementation process at the smallholder level by using a polycentric governance framework, which views the ISPO’s overarching rules as changing the relationship between companies and smallholders toward sustainable management. This study examines a smallholder’s ISPO implementation in Sari Makmur. This smallholder became a pilot project site for the smallholder ISPO certification in 2011; however, it has still not been certified. This study reveals that the recurring problem of land swaps and the expectations of being certified have complicated the fulfillment process of legal documents for ISPO certification. Nevertheless, smallholders and companies are in the process of delineating their interests toward defining their physical boundaries for sustainable palm oil production.