SUSTAINABLE PALM OIL CERTIFICATION SYSTEM

IN INDONESIA IN ACCORDANCE WITH THE

CONCEPT OF GREEN GROWTH
 I. INTRODUCTION
• Green growth focuses on the quality of economic growth, improving welfare with better social
impacts, and reducing adverse effects on the environment and Indonesia's natural resources.
The Green Growth Concept is in line with the Post 2015 Global Development Agenda.
• The implementation of sustainable palm oil certification is in accordance with the regulations in
Presidential Regulation Number 44 of 2020 and Regulation of the Minister of Agriculture
Number 38 of 2020 concerning the Implementation of Indonesian Sustainable Oil Palm
Plantation Certification, amid the concept of green growth which is often echoed whether then
Indonesian sustainable palm oil certification and its implementation has been in accordance
with the concept of green growth which is echoed as the best economic growth concept
according to National Development Planning Agency (BAPPENAS).
• The existence of ISPO slightly opens a way out of the complex problems of oil palm plantations
in Indonesia. The law comprehensively regulates the behavior of human activities with humans,
humans with legal entities and humans with nature. Therefore, the meaning of legal certainty is
very important.
II. DISCUSSION

• A. Towards a Green Economy Through Indonesian Sustainable Palm

Oil Certification
• Green growth focuses on the quality of economic growth, increasing
welfare with better social impacts and reducing adverse impacts on
the environment and Indonesia’s natural resources
• The concept of green growth according to the National Development
Planning Agency (BAPPENAS) is an approach to achieve a number of
goals simultaneously so that Indonesia can be closer to true
sustainable development.
Green growth characteristics include:
• (i) increased investment in natural capital
• (ii) environmentally friendly economy through improving the
efficiency of the use of natural resources and ecosystem services in
economic activities,
• (ii) strengthening environmental management and increasing
environmental goods and services, and
• (iv) create multiple benefits for the economy and the environment.
• The green economy concept is essentially in line with environmentally
sustainable development (eco-development) which is officially
regulated in Law No. 23/1997 on environmental management.
Sustainable development is development that is based on the
sustainability of economic, social and environmental development.
1.Indonesian Palm Oil Plantation
• The industrial sector that creates complete economic benefits includes
economic, social, and environmental simultaneously, one of which is palm
oil plantations.
• According to UNEP report in 2007, about 98% of Indonesia's forests will be
lost by 2022 due to legal and illegal logging, forest fires, and the
development of palm oil plantations.
• Palm oil plantations are also one of the sectors that provide the largest
contribution to the level of greenhouse gas emissions, around 4% of global
greenhouse gas emissions.
• The occurrence of erosion and the spread of pests and plant diseases are
also part of the complexity of the negative side of palm oil land clearing.
2.Indonesian Sustainable Palm Oil
Certification
• ISPO is a policy taken by the Indonesian government which in this
case the Ministry of Agriculture aims to increase the competitiveness
of Indonesian palm oil in the world market and participate in fulfilling
the commitment of the President of the Republic of Indonesia to
reduce greenhouse gases and pay attention to environmental
problems.
• ISPO aims to position oil palm as part of Indonesia's development
economy by supporting the government's commitment to conserving
natural resources and the environment.
ISPO has seven important principles in its
implementation, namely:
• 1.Licensing system and plantation management
• 2.Application of Good Agriculture Practices (GAP) and Good
Manufacturing Practices (GMP)
• 3.Environmental monitoring and management
• 4.Responsibilities to workers
• 5.Social and community responsibility
• 6.Community economic empowerment
• 7.Continous business improvement
• ISPO is a mandatory prerequisite set by the government for palm oil
plantations in order to improve palm oil governance in a sustainable
manner. ISPO has a goal to ensure that the sustainability principles set
out in the relevant regulations/policies are properly implemented.
3.Certification Of Indonesian Sustainable Palm
Oil Plantation In The Concept Of Green Growth
• a development paradigm that based on resources efficiency approach
with strong emphasizes on internalizing cost of natural resources
depletion and environmental degradation, efforts on alleviate the
poverty, creating decent jobs, and ensuring sustainable economic
growth
• The concept of Indonesia's green economy, in addition to
emphasizing the efficient use of resources, also emphasizes the
internalization of environmental costs, efforts to alleviate poverty,
create decent jobs, and ensure sustainable economic growth.
• The use of natural forests in Indonesia to meet the world's palm oil
needs has caused natural forests to turn into production forests. The
expansion of production land has converted some or even the entire
forest area. Land degradation, decreasing soil productivity, increasing
carbon emissions which result in an increase in the intensity of the
greenhouse gas effect which then causes global warming are big
prizes amid the high demand for world’s palm oil. If the use of forests
is carried out continuously, natural forests as the largest source of
oxygen on earth will lose their duties and functions as a balance of life
on earth.
• Therefore, the regulation in Ministry of Agriculture 38/2020 is here as
a long-term savior.
• The application of the principles of good agriculture practices is a
technical implementation of a certification system for agricultural
production processes that uses advanced technology that is
environmentally friendly and sustainable, and aims to improve the
welfare of farmers, which is actually in accordance with the goals of a
green economy in order to creat a cycle of using environmentally
friendly natural resources and the fulfillment of welfare people.
• ISPO certification also adheres to the principle of good manufacturing
practice (GMP) as a strategy in improving the quality of product safety
where the concictency of the final produc must ensure food safety, so
that the resulting produc can be of high quality and safe for
consumption.
• The application of these two principles is applied so that Indonesian
palm oil product can compete in the world market. GMP have been
accommodated in the provisions of article 4 of presidential regulation
44/2020 and their implementation is regulated in more detail in
minister of agriculture 38/2020.
• This is also in line with the main objectives of the green economy,
namely maintaining environmental ecosystems while maintaining
efficient use of natural resources, efforts to improve welf are, create
decent jobs, and ensure sustainable economic growth. A green
economy also requires a low-emissions and/or climate-resilient
economic growth strategy in the long term. A green economy focuses
on more efficient use of natural resources but still allows to produce
more or provide greater value with fewer inputs.
CONCLUSION
• The existence of ISPO also supports the green economy growth
program in Indonesia, this is evident from the new innovations born
from the use of forests for palm oil plantations.
• As a contributor to foreign exchange, the certification applied to
Indonesian oil palm plantations has supported the goals and
principles of a green economy. Efficient use of natural resources
through restrictions on land clearing permits, monitoring the use of
hazardous pesticides is one of the sustainable ways to minimize
impacts on the environment.