Indonesia targets 50 companies to have ISPO certificates

Kamis, 26 September 2013 | 09:06

Ministry of Agriculture has targeted 30 to 50 palm oil companies to be certified by Indonesian Sustainable Palm Oil (ISPO) in 2013. Now only 19 companies which have certificates.

"We estimate 30 to 50 palm oil companies by the end of the year," Secretary General of Ministry of Agriculture, Hari Priyono said on Tuesday.

ISPO certification mechanism is preceded by a scoring system of plantation business according to Decree of Minister of Agriculture No. 07/2009. A company must have good plantation management system. ISPO will introduce two certification schemes for sustainable palm oil, namely scheme for plasma farmers or smallholder plantation farmers and nonplasma farmers.

Both schemes are based on result of survey conducted in several regions in Indonesia and have been through field testing process.

Plasma farmer's plantation is handled by core plantation management, while self supporting plantation is handled by the owner. ISPO certification for all farmer is compulsory. Currently, Indonesia is the largest palm oil producer. In 2012, Indonesia has produced over 23.4 million tonnes and it is estimated to reach more than 25 million tonnes this year. More than 19 million tonnes will be exported to foreign countries. If use of biofuels in Indonesia rise to 10 percent, Indonesia will become manufacturer, exporter and the largest palm oil user in the world.