Indonesia is one of the countries that have a large amount of palm oil production and it is increasing every year. Based on mundi index 2022, Indonesia took 1st place as the largest producer of palm oil, which is 46,500/MT. This rapid growth of the palm oil industry can bring a negative impact on the environment if the company can not maintain the sustainability of natural resources. Those negative impacts are biodiversity threats, an increase in greenhouse gases, and even it will lead to social problems. The government’s effort to prevent those negative impacts is to obligate the palm oil industry to take ISPO certification. ISPO is regulated by Peraturan Menteri Pertanian No. 38 Tahun 2020 about the management of sustainable palm oil certification. Nevertheless, ISPO is only acknowledged in the national region so the Government urges the palm oil industry to be internationally certified, or we can say, to take the RSPO certification. The benefits of RSPO certification are to make the development of the palm oil industry aligned with the sustainability of environment function and provide benefits to society. \
The Roundtable on Sustainable Palm Oil (RSPO) is an association that consists of several organizations from the palm oil industry sector. RSPO aimed to develop and implement the global standard in sustainable palm oil production. RSPO is a large-scale international certification, and it has become an obligation to palm oil producers so that they can manage international trade. It is one of the benefits of the palm oil industry to broaden their market.
The following documents should be available at the unit of certification, including:
- Land titles/user rights
- Occupational Health and Safety Plans
- Plans and Impact Assessments relating to environmental and social impacts
- HCV & HCS Documentation
- Pollution prevention and reduction plans
- Details of complaints and grievances
- Negotiation procedures
- Continuous improvement plans
- Public summary of the certification assessment report
- Human Rights Policy
Based on the document mentioned above, analysis of social and environmental impact becomes one of the main criteria for RSPO certification. It’s aligned with the P&C RSPO structure that is divided into 3 main targeted areas: welfare, society, and planet. The stages of SIA (Social Impact Analysis) are beneficial to the P&C RSPO structure, mainly in the welfare and social area. SIA can increase the inclusivity of impacted local farmers, increase the livelihood of society, prevent land conflict, ensure the openness and traceability of commodities, reduce poverty, etc.
Therefore, the study of social and environmental impact comprehensively be done before the industry started a new plantation or operation, and the management and social and environmental monitoring have to be held and maintained periodically. This study is based on the participatory method with the involvement of stakeholders and encompasses every impact on every scheme. It’s aimed to optimize the productivity, efficiency, positive impact, and the resilience of sustainable palm oil industry. The benefits of RSPO certification for the palm oil industry are a good reputation, sustainable growth, international market exposure, added value in trademark usage, a global network, reduced land conversion risks, and assurance and validation from third parties.
Source:
[PERMENTAN] Ministry Agriculture . 2020. Implementation of Indonesian Sustainable Palm Oil Plantation Certification. Can be downloaded from:
https://madaniberkeContinan.id/2021/03/18/peraturan-menteri-pertanian-no38-tahun-2020-about-pembelenggaraan-certification-perkebunan-sawit-berkeuntungan-indonesia
Index Mundi. 2022. Palm Oil Production by Country in 1000 MT. Can downloaded from : https://www.indexmundi.com/agriculture/?commodity=palm-oil
[RSPO] Roundtable on Sustainable Palm Oil. 2018. Principles and Criteria for Sustainable Palm Oil Production. Can be downloaded from: https://rspo.org/wp-content/uploads/rspo_pc_2018_update-2020-eng.pdf
[RSPO] Roundtable on Sustainable Palm Oil. Can accessed from : https://rspo.org/en/who-kita/
