ISPO EXPECTED TO BOOTS PALM OIL TO BECOME AN ENVIRONTMENTALLY FRIENDLY PRODUCT

The first ISPO (Indonesia Sustainable Palm Oil) certificate given on Friday [3/8] to 9 oil palm plantations owned by six oil palm company groups is expected to promote palm oil to become an environmentally friendly product. Minister of Agriculture, Suswono, stated during the handover of ISPO certificates.

               

The six oil palm company groups who received ISPO certificate are Musim Mas, Mina Mas, Sinar Mas, Astra Agro Lestari, Cargill, and PTPN V. “ The handover of ISPO certificate proved that oil palm development in Indonesia was not done carelessly. Since the beginning, Indonesia’s oil palm plantations had been designed to be economically, socially, and environmentally feasible”, said the Minister of Agriculture.

               

ISPO is mandatory as it contains all rules prevailing in Indonesia. “ If oil palm plantations and factories in Indonesia were unable to obtain ISPO certificate, it means that they did not implement the prevailing laws in Indonesia properly”.

               

he granting of ISPO certificate is a preliminary step, and it is expected that there will be an increasing number of companies to obtain ISPO certificate. Companies receiving ISPO certificate. Companies receiving ISPO certificate proves that oil palm development in Indonesia has been implemented sustainably.

               

Palm oil companies receiving ISPO certificate proves the companies’ obedience to the prevailing regulations and attempts to protect and promote sustainable plantation business according to market demand.

               

Oil palm has been to have a quite significant contribution to the country’s foreign exchange revenue, create work opportunities, and increase farmers’ welfare. Therefore, oil palm planting in Indonesia is a requirement, and not an alternative.

               

Gamal Nasir, Director General of Plantation, said that presently there are 22 ISPO auditors from certification institutions, plantation companies, and consultant. Soon, the number of auditors will increase to 44 persons.

               

There are 7 ISPO certification companies, namely PT Mutu Hijau, PT mutu Agung Lestari, PT Sucofindo, PT TUV Nord,PT TIV Rhend, and PT SGS. “We will open certification companies as many as possible so there will be an increasing number of plantations to be certified“, he said

               

Socialization would also be expanded to palm oil centre provinces. While, socialization abroad was focused on main markets of Indonesia’s CPO, namely India and China.

               

Currently, there were only ISPO for oil palm plantation and factories available, while ISPO for plasma/farmers plantation is not yet available. Principle  and criteria of farmers have been completed, and now plantations owned by plasma (smallholding) companies were on trial.

               

ISPO consist of 7 principles, 42 criteria, and 128 indicators. 7 principles consist of Plantation Licensing and Management System, Application of Technical Guidelines for Oil Palm Culture and Processing, Environmental Management and Monitoring, Responsibility to Workers, Social and Community Responsibility, Empowerment of Community’s Economic Activities.

               

Companies entitled to receive ISPO certificate are those classified as Class I, II and III. Assessment is conducted by the plantation agency. “This is the difference with ISPO. Without assessment, there will be no ISPO certificate.”(E)

Business News - March 13,2013