Sustainable Palm Oil Certification Schemes Must Be Redesigned

Sustainable Palm Oil Certification Schemes Must Be Redesigned

Civil society groups are calling for a comprehensive strengthening and overhaul of the Indonesian Sustainable Palm Oil (ISPO) certification system to ensure that it truly guarantees palm oil sustainability, protects the environment and human rights, and restores market confidence, which has declined due to weak credibility and poor law enforcement.

March 21, 2017

[Tuesday, 21 March 2017] In conjunction with the International Day of Forests, we—the undersigned civil society representatives—hereby express our collective position regarding Indonesia’s sustainable palm oil industry through this position paper. This is intended as an active and transparent contribution to the ongoing process of “strengthening” the Indonesian Sustainable Palm Oil (ISPO) certification system, which the Government is currently seeking to fundamentally reform.

This position paper is prepared to support Indonesia’s agenda in:
(i) addressing climate change mitigation challenges and improving natural resource governance through stronger policy frameworks and implementation;
(ii) increasing market acceptance of palm oil as one of Indonesia’s strategic commodities; and
(iii) ensuring the protection, respect, and fulfillment of human rights.

The transformation of Indonesia’s palm oil sector must be grounded in a shared vision to:

halt deforestation of remaining forest cover and prevent further degradation of environmental functions and biodiversity;
stop land conversion and strengthen forest protection, including full protection of peatland ecosystems; and
provide consistent and enforceable legal guarantees for the rights of affected communities, including but not limited to Indigenous Peoples, local communities, smallholder farmers, and workers.

The poor credibility and accountability of ISPO implementation, combined with weak law enforcement against ongoing violations, has harmed the environment and triggered conflicts between communities and palm oil plantations. Ultimately, these shortcomings have contributed to low market acceptance of ISPO certification.

In April 2016, President Joko Widodo committed to a palm oil moratorium that should have halted further land expansion for plantations—whether by corporations or under the guise of “smallholder” development. However, business groups and their supporters continue to push for principles that would not constrain plantation expansion, repeatedly invoking smallholder narratives and poorly grounded claims of nationalism as shields against criticism and demands for reform.

Unfortunately, during the ISPO strengthening process, civil society agreements and inputs regarding the substance of ISPO principles and standards have been disregarded. This includes the removal of two key principles: traceability and transparency, and respect for human rights. Such developments undermine the integrity of the multi-stakeholder process currently underway.

Reforming the ISPO certification system must therefore be carried out comprehensively through a redesign process that is participatory, inclusive, transparent, and accountable. A renewed ISPO scheme must include robust sustainability standards and governance mechanisms that ensure credibility and accountability. Furthermore, ISPO certification must be accompanied by effective law enforcement and a comprehensive policy framework to ensure meaningful improvements in palm oil governance in Indonesia.

For this reason, we present this position openly as input to the Government, so that it may be publicly known and monitored by society.

Signatories

Serikat Petani Kelapa Sawit (SPKS) – Lembaga Ekolabel Indonesia (LEI) –
Forest Watch Indonesia (FWI) – Jaringan Pemantau Independen Kehutanan (JPIK) –
Kaoem Telapak – Yayasan Sumberdaya Dunia Indonesia – Greenpeace Indonesia –
Yayasan Madani Berkelanjutan – Institute for Ecosoc Rights – GAIA –
Tropical Forest Foundation (TFF) – Padi Indonesia (East Kalimantan) –
Jasoil (West Papua) – Uno Itam (Aceh) – Lembaga Tiga Beradik (Jambi) –
Evergreen (Central Sulawesi) – Yayasan Pusaka – Sayogyo Institute –
Indonesia Center for Environmental Law (ICEL) – Kemitraan – GeRak Aceh –
Stabil (East Kalimantan) – MATA Aceh – Perkumpulan Bantuan Hukum Kalimantan –
PPLH Mangkubumi – JAPESDA Gorontalo – GRID West Kalimantan –
LPMA Borneo (South Kalimantan) – Yayasan Peduli Nanggroe Atjeh (PeNA) –
Jikalahari (Riau)