The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia

Published on June 2022

Information Brief

THE COMPARISON OF ISPO

AND RSPO CERTIFICATION
TO ACHIEVE SUSTAINABLE PALM OIL PRODUCTION IN INDONESIA

Introduction and Methodology

The Roundtable on Sustainable Palm Oil (RSPO) is a
non-profit organization established in 2004 and has
members from various stakeholders at all levels of
the global supply chain. The establishment of RSPO
is a joint stakeholder response based on concerns
from the consumer that requires the sustainability of
the production and trading process of palm oil. Up
to 2021, the RSPO has certified 2.3 million hectares
of oil palm plantations in Indonesia [3]. The RSPO
has continuously been improved. The newest RSPO
standard is RSPO principles and criteria in November
2018 which has been nationally interpreted [5].

This article aims to understand how two primary

Indonesia is a major palm oil producer in the world.
standards regulate oil palm plantations in Indonesia.
In 2020, the production of palm oil reached up to 44,8
ISPO as a national standard and RSPO as a global
million tons comprising more than 50% of the world’s
standard can fulfil and underpin the implementation
palm oil production [1]. As an important sector in
of sustainable palm oil production in Indonesia.
the global and national economy, governments
To achieve the objective, the two standards
and global actors have been contributing to the
are compared. This article discusses the 2 (two)
governance transformation of oil palm plantations
latest standard documents namely the minister
in Indonesia.
of Agriculture No.38 of 2020 and the nationally
interpreted RSPO principles and criteria in November
The Indonesian Sustainable Palm Oil (ISPO)
2018.
certification system is a collection of laws and
regulations on oil palm plantations developed by the
Government of Indonesia in 2011. The establishment
of ISPO is the response of the Government of Indonesia
to strengthen and ensure the implementation of
framework regulation regarding oil palm plantation
in Indonesia in order to achieve sustainable palm oil
production. Until now, ISPO has certified 4.5 million
hectares of oil palm plantation from the 16,8 million
hectares of the total national palm oil plantation
[2]. The framework regulation has always been
improved. Minister of Agriculture regulations No. 38
of 2020 is the newest framework regulation on ISPO
implementation standards where its development
upholds the involvement of stakeholders [3].
Result and Discussion
In comparing the ISPO and RSPO standards, this tending of soil layers on peatlands, planting
paper re-synthesizes the principles and criteria of the application on peatlands, the new plantation areas
two standards into several aspect categories namely are not converting peatlands, as well as peatland
(1) the environmental aspect, (2) Social and Labour, preservation in accordance with applicable law
(3) the governance aspect, (4) the supply chain, and regulations while for RSPO standards, the oil palm
(5) verification of the third party. growers must have a map which identifies marginal,
fragile, and steep slope, suitability evidence of a long-
First, the environmental aspect, the two standards term land for oil palm cultivation, evidence of best
discuss the limitation of converting primary forests practices for fragile and marginal land. The oil palm
and peatlands, the greenhouse gas emission growers must have an inventory, documentation, and
reduction, and biodiversity conservation with various reports regarding peatland management including
different clauses. the peat soil subsidence in the plantation. Proof
of the program implementation of water and land
The limitation of converting primary forests, ISPO cover management as well as an assessment of
requires the applicants to hold a land (location) peatland drainage activities for oil palm plantations
permit. This evidence ensures that the plantation in peatlands. Moreover, the oil palm growers planted
areas are situated in a proper zonation as planned in peatlands must comply with all applicable laws
in a district or provincial spatial planning (RTRK/ and/or RSPO guidelines. Lastly, all unplanted and
RTRWP). Furthermore, oil palm plantation located reserved peatlands in managed plantation areas
in the converted convertible production forest (regardless of depth) should be protected as peatland
must have a permit on forest estate release from conservation areas. It also emphasizes prohibiting
the Ministry of Environment and Forestry (MoEF/ peatlands conversion for the new area.
KLHK) or Investment Coordinating Board/Ministry of
Investment (ICB/BPKM) while for oil palm plantation Greenhouse gas emission reduction aspect, ISPO
coming from production forest and limited requires the oil palm growers must have SOPs for
production forest, the oil palm growers must hold GHG mitigation, an inventory of GHG emission
a letter of consent on the principle of exchanging sources, GHG calculation results, the land history
forest areas. Moreover, the assessment report on documents, and the GHG mitigation documents.
the identification of protected areas and the High Meanwhile, the RSPO requires identification of the
Conservation Value (HCV) areas are also required amount of GHG emissions in each certified land unit
for ISPO certification. Lastly, a supporting document and the planning of the oil palm growers to monitor
shows that the new plantation areas are not clearing and reduce the GHG emission. The estimated GHG
the natural forest in accordance with relevant and emission in certified land units includes the potential
applicable laws and regulations. In contrast with GHG emissions that might arise as a result of oil
the RSPO standard, the historic Land Use Change palm plantations.
Analysis – LUCA is used to understand the land-use
changes where converting primary forests into oil
palm plantations after 2005 cannot be accepted.
Similar to the ISPO standard, RSPO also requires the
oil palm growers to identify the High Conservation
Value (HCV) areas.

Restriction on converting peatland areas, ISPO

regulates that the oil palm growers must have
a Standard Operating Procedure (SOP) on land
clearing and management of land. The conservation
principles of water and soil in clearing the new land
and any operational activities are also required in the
implementation in accordance with the applicable
laws and regulations. An SOP on technical guidelines
or working instructions for planting the oil palms on
peatlands is also demanded in ISPO certification.
Additionally, the following information such as
documentation (records) regarding subsidence
 The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia

In the biodiversity conservation aspect, ISPO requires and Health (OHS). This plan should be documented,
the oil palm growers to have the result identification communicated, and effectively implemented. Also,
of the protected areas and High Conservation the oil palm growers must ensure that the working
Value (HCV) areas. The SOP for managing HCV environment is safe without any health risks.
and protected areas, the site location map and the
management plant of HCV and protected areas, an Regarding the workers' rights to form labour unions,
SOP on biodiversity conservation, and the priority list ISPO requires the oil palm growers to facilitate the
of flora and fauna in and outside of the plantation formation of labour unions to express the workers'
area (from the environmental document), pre and rights whereas the RSPO inquires the oil palm
post plantation activities. In addition, the result of the growers to respect the rights of all workers to form
identification and the planning program of HCVs and and join a labour union and to collectively negotiate
protected areas should also be informed to workers their rights with the company. When the rights to
and local communities. Meanwhile, RSPO requires form a labour union and collective discussion are
protection for all rare, threatened, and endangered restricted by laws, employers must facilitate any
species in the HCVs areas as well as adjacent parallel methods to form a labour union and conduct
plantation areas. In addition, monitoring activities an open and independent negotiation for all their
should be included in the plantation management workers.
planning.
Third, related to governance, the two standards
Second, related to social and labour context, regulate the compliances with the law, provision
both standards regulate the compliance on land and disclosure of information, and the extension or
rights, child and forced labour, Health and Safety termination of certification, with several different
Environment (HSE), and workers’ right to form a clauses. Regarding compliance with the laws,
labour union and several different stipulations. ISPO inquires the applicants (oil palm growers)
Regarding the land rights (ownership), ISPO requires to comply with applicable laws and regulations
the availability of a site location permit, the process such as the fulfillment of land rights legality and
of obtaining the land, and the right ownership such as plantation business permits. While for the oil palm
cultivation right tittle (HGU), the right of the building smallholders, compliance with the law includes
(HGB), and the right to use. In contrast with the RSPO legality and smallholders’ management, location,
standard, the applicants must have legal documents dispute, the legality of smallholders’ business, and
showing ownership or authority to use the customary the environmental permit obligations. Apart from
land and acknowledged by the land owners through that, all oil palm growers in Indonesia must comply
a free, prior, and informed consent (FPIC) process. with all applicable regulations as follows: labours,
These documents must be able to explain the history good agricultural practices, waste management and/
of land ownership and legal use of land. Related to or utilization, emissions management, disturbance
child labour issues, ISPO demands to prohibit hiring levels, fire and disaster controls, protected areas
child labour and discrimination act in the working and HCVs areas, biodiversity conservation, soil and
environment in accordance with the applicable water conservation, indigenous people, and others.
laws and regulations while RSPO requests for the Meanwhile, RSPO demands all oil-palm growers to
policy establishment that formally prohibits child comply with all applicable laws and regulations at
labour. The oil palm growers must hold an evidence local, national, and ratified international as basic
document showing the minimum age requirements principles of operation in any jurisdiction.
for workers. Furthermore, the policy should also
be implemented and informed to all actors in its For the provision and disclosure of information,
supply chain including oil palm smallholders. For ISPO requires the implementation of transparency
the forced labour aspect, ISPO inquiries about the oil palm plantation mills in terms of the source of
written policy of the oil palm growers that regulates Fresh Fruit Bunches (FFB), the calculation of the K
the prohibition of all forms of forced labor or slavery index and transparency of supporting data, and fair
in executing all operational activities whereas RSPO and transparent FFB pricing, complaints handling,
prohibits any forced labour or human trafficking to commitment to eradicate any bribery actions, and
become workers in the oil palm plantation. traceable supply chain systems. Additionally, ISPO
requires the implementation of transparency for
For the Health and Safety environment aspect, ISPO smallholders in terms of sales and price agreements
inquires the oil-palm growers should implement of FFB as well as the provision of data and
the Health and Safety Environment procedures in information. Meanwhile, RSPO inquiries about oil
accordance with the applicable laws and the RSPO, it palm growers to provide adequate information on
is required to develop a plan on Occupational Safety the environment, social, and applicable laws on RSPO
criteria for relevant stakeholders. So, participation the next audit, the non-compliance category would
can be effectively performed in decision-making. be listed in the major category. Moreover, if the
This information can be formulated or shown in major non-compliance is found again in the annual
the management process as the results of the FPIC surveillance audit (ASA), the consequences would be
process, Environmental Impact Analysis (AMDAL), the suspension of the RSPO certificate. The major
Human Rights Policy (HAM), and social programs to non-compliance raised during the surveillance audit
prevent and mitigate adverse social impacts. and recertification must be successfully completed
within 90 days, or the certificate will be suspended
In regard to extension and termination of the and subsequently be revoked if the major non-
certification, ISPO determines that the ISPO certificate compliance is not addressed within the agreed
is valid for five years. An expired ISPO certificate timeframe as specified, not later than six months from
can be renewed by submitting an application for the last day of the audit. The Certification Body must
recertification no later than six months before document procedures regarding the circumstances
the expiration of the ISPO certificate. The first and of suspension and revocation, ensuring that the
second audits are performed in the re-certification client (certified institution) discontinues the use of all
in accordance with the initial certification process. promotional and advertising materials that contain
If there is no significant change that affects the any reference to certified status. The Certification
fulfillment of the ISPO principles and criteria, the Body must notify the RSPO within one working
same ISPO Certification Body can immediately day, along with the effective date and justification
conduct a second audit in phase two. A significant for suspension or revocation. After revocation and
change includes amendment in permit documents, termination of the certificate, a recertification audit
size of plantation area (hectares), and/or processing is required before the certificate can be re-assigned.
unit capacity. The decision to recertification is
determined before the expiration of the ISPO Fourth, the supply chain aspect, both standards
certificate and no later than four months from the regulate the tracing of the supply chain with different
last day of the second audit phase two. Furthermore, stipulations. ISPO acknowledges two supply chain
the oil palm growers that have obtained the ISPO models namely a segregated model and a mass
certificate must be monitored by the Certification balance. The Segregation Model demands that
Body that issued the ISPO certificate. The first 100% of all raw materials are from ISPO-certified
surveillance is undertaken between 9 – 12 months fresh fruit bunches (FFB) at each stage of processing
from the date of the certification. Subsequent starting from production, processing, storage, and
surveillance is conducted annually for a maximum transportation throughout the supply chain. The
of 1 (one) year from the previous surveillance. If Mass Balance Model inquires at least 30% of the raw
there are some findings during surveillance, a period materials are certified in the very first surveillance
of improvement is given no later than three months and it (the certified FFB raw materials) will be
from the closing meeting of the surveillance. If the increased in the following year. Moreover, ISPO
certified oil palm growers receive a surveillance requires the palm oil mills to have a system to find
decision in the form of suspension, they are given a out the source of ISPO-certified and non-certified FFB
maximum period of six months before the decision suppliers. The mills and their supply chain must have
to revoke or terminate the ISPO certificate. the SOPs that explain the procedures for receiving
FFB from all supplier sources including the purchase
RSPO stipulates that the maximum validity period of from the third parties (purchases from legal sources,
an RSPO certificate is five years. The Certification Body criteria, and category determination of supplier risk).
must conduct an annual surveillance audit during ISPO also requires an up-to-date list of registered
the validity of the certificate and a recertification FFB suppliers and FFB sources
compliance audit before the end of the five-year
period. Non-compliance with a requirement is a non- Meanwhile, the RSPO regulates two supply chain
compliance that is categorized as a minor or major models such as ISPO, namely segregation and mass
non-compliance. At the time of initial certification, balance. RSPO also requires that all FFB sourced
if there is a major category of non-compliance, direct information about the geolocation of FFB
the certificate will not be issued until the non- origin, proof of ownership status or rights/claims
compliance is fulfilled in a maximum of 12 months to land by smallholders/smallholders and if any,
after the last meeting. If it cannot be fulfilled within valid planting/operation/trading permits, or indeed
the agreed time duration, then a re-audit will be part of a cooperative that allows buying and selling
conducted and for a minor non-compliance, it will be TBS. Meanwhile, for all FFB sourced from indirect
verified in the next audit. At the time of the annual suppliers, the unit of certification is obtained from
surveillance audit (ASA), if it is not addressed until collection centers, agents, or other intermediaries.
 The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia

Fifth, the third-party verification, the two standards

regulate the independence of Certification Bodies,
Conclusion
with several different provisions. ISPO stipulates
Overall, ISPO and RSPO standards cover the principles
that each certification body must be accredited
and criteria to encourage the achievements of
by the National Accreditation Committee (KAN)
sustainable palm oil and create the possibility of
within a certain accreditation period. In addition,
further collaboration in the future. ISPO standards
the Certification Body must be registered in the
are fully prepared based on the prevailing laws and
Ministry of Agriculture partner list. In the operation
regulations in Indonesia while RSPO standards are
of certification, the results report on the certification
developed according to mutually agreed upon by
assessment conducted by the auditor team is
global stakeholders. Nevertheless, RSPO standards
submitted to the Certification Decision Making Unit
contain principles and criteria for complying
of the Certification Body no later than 1 month
with the legality in a jurisdictional area through
after the audit process is completed and declared
the national interpretation process, particularly
complete
regarding the land rights legality and plantation
business. Furthermore, additional requirements,
The ISPO certificate is issued by the Certification
such as proof of the information that the oil palm
Body and signed by the Head of the Certification
plantations do not encroach the primary forest and
Body. The ISPO Certification Body is required to
the implementation of historical Land Use Change
submit a report to the ISPO Committee regarding the
Analysis (LUCA). This can be observed in each aspect
ISPO certificate that has been issued and information
group of the principle and criteria: 1) environment,
on oil palm growers' plantation businesses that are
2) Social and labour issues, 3) governance, 4) supply
in the process of improvements and/or completing
chain and 5) the third-party verification which in
the requirements for compliance. Also, ISPO auditors
ISPO requires to comply with the national laws and
must hold a competency test certificate from a
regulations, and RSPO added further requirements to
Professional Certification Institute (LSP) which has
strengthen the achievement of sustainable palm oil
obtained a license from the National Professional
production in Indonesia. The collaboration of these
Certification Agency (BNSP), and the RSPO standard,
two certifications can help overcome the legitimacy
inquires that each Certification Body must be
issues of certification from the private institution
accredited by Assurance Services International (ASI)
(RSPO). In addition, both standards have continued
and the accreditation is valid for 5 years with an
to grow into independent and trusted certifications
annual audit. In the operation of certification, the
with third-party verification systems.
Certification Body must prepare a certification audit
report and submit a draft report for peer review. The
certification body will only finalize and complete
the report after the peer reviewer has provided
REFERENCE
comments (feedback). The final decision on approval
of certification is made by the certification body. The [1] BPS, “Statistik Kelapa Sawit Indonesia 2020,”
certification body must issue a certificate and send BPS, 2021. [Online]. Available: https://
a copy to the RSPO secretariat together with the www.bps.go.id/publication/2021/11/30/
certification report. The registration and approval 5a3d0448122bc6753c953533/statistik-kelapa-
of the RSPO results in the activation license in a sawit-indonesia-2020.html
specially developed portal, namely Palm Trace for [2] Gapki, “Gapki: 4.53m ha palm oil plantations
the trading of certified products. certified with ISPO,” Gapki, 2021. https://gapki.
id/en/news/20739/gapki-4-53m-ha-palm-oil-
plantations-certified-with-ispo (accessed Jun.
2022).
[3] Kementan, “Peraturan Menteri Pertanian No.
38/2020 tentang Penyelenggaraan Sertifikasi
Perkebunan Kelapa Sawit Berkelanjutan
Indonesia,” Kementerian Pertanian, 38, 2020.
[4] RSPO, “RSPO: Impacts,” RSPO, 2022. https://rspo.
org/impact (accessed Jun. 2022).
[5] RSPO, “Interpretasi Nasional: Prinsip dan
Kriteria RSPO 2018,” RSPO, 2019. [Online].
Available: https://rspo.org/public_
consultations/download/ fa608229dcfda61
CRITERIA
RSPO (P & C November 2018) ISPO (MOA regulation No. 38, 2018)
Environmental Aspect
Limiting land Converting Standard: Standard in Annex 1
conversion: primary forests 1. Indicator 7.12.1
Conservation or other high • Circumstances: Indicator 1.1.1.:
of the primary conservation Land clearing since November 2005 has not damaged the primary forest or any area • Circumstances:
forest and biodiversity required to protect or enhance HCVs. Land clearing since 15 November 2018 has not The oil-palm growers should have land permits….. based on district or provincial
value areas into damaged HCVs or HCS forests. spatial planning (RTRW/RTRWP)
new oil palm
plantations will A historic Land Use Change Analysis (LUCA) is conducted prior to any new land clearing, • Description:
not be allowed in accordance with the RSPO LUCA guidance document.
since November According to Indonesian law 26/2017, spatial planning is defined as a form of
2005. • Description: spatial and pattern structures where the pattern is designated for protection
I. Definition of Land clearing on Annex 1 is a conversion of land from one land use to and cultivation zones. One of the protected zone functions is protected area
another. Replanting oil palm to oil palm is not considered land clearing. Within an while for the cultivation zone is the forest silviculture. The oil palm plantation
existing certified unit, clearing of less than 10 ha is not considered new land clearing; should not be converted from protected areas and/or the forest silviculture area
II. Definition of Primary Forest and area required to protect on Annex 1 and Indonesian instead it must use the agriculture/plantation zones.
National Interpretation is not available so that definition refers to the term used in
Indonesian (by government & scientific) during the audit; Indicator 1.1.2.:
III. Definition of deforestation in Annex 1 is loss of natural forest as a result of: 1). • Circumstances:
Conversion to agriculture or other non-forest land use; 2). Conversion to a plantation The oil palm plantation area which comes from convertible production forest
forest; or 3). Severe and sustained degradation; must have the permit forest estate release from the Ministry of Environment and
IV. Definition of High Conservation Value (HCV) areas on Annex 1 is the areas necessary to Forestry (MoEF/KLHK) or Investment Coordinating Board/Ministry of Investment
maintain or enhance one or more HCVs; (ICB/BPKM);
V. Definition of new planting on Annex 1 is planned or proposed planting on land not The oil palm plantation area which comes from production forest and limited
previously cultivated with oil palm; production forest must have a letter of consent on the principle of exchanging
VI. Since November 2005 when the Principles and Criteria (P&C) were firstly adopted in forest areas.
November 2005;
VII.New term was introduced from “new planting” to be “land clearing” and other additional • Description:
words in 2018 RSPO standards. 1. The definition of Forest and Forest area refers to Indonesia’s law No 41 of 1999
VIII. Activity since November 2005 in HCVs area because the HCVs assessment is not as amended by law no 19 of 2004 (stipulation of government law in lieu of law
conducted yet prior to the land clearing activity. So, it will be categorized as non- No. 1 of 2004);
compliant clearance. For this category, the remediation and compensation Procedures
(RaCP) November 2015 will be applied. The membership of the entity would be revoked 2. The forest area that is allowed to be converted as a non-forest area (including
if this activity is undertaken after 2014. oil palm plantation) is a production forest. So, the primary forests that have
functioned as permanent forests could not be converted into the non-forest
2. Indicator 7.12.2 areas. The permanent forest is a forest area whose existence will be maintained
• Circumstances: as forest (primary forest). forest, are the type of permanent forest.
HCVs, HCS forests, and other conservation areas are identified.
- Government regulation No. 10 of 2010, amended by government regulation
• Description: No. 60 of 2012, and amended by government regulation No. 104 of 2015;
1. The HCV toolkit is used for HCV assessment/identification. Forest is one of the - Minister of Forestry Regulation No.P.33 of 2010, amended by P.17 of
landscapes which is considered as a special ecosystem in terms of biodiversity; 2011 and P.51 of 2016. This regulation was then revised to Minister of
2. The HCV assessment/identification is assessed by authorized personnel (Approved RSPO Environment and Forestry Regulation No. 96 of 2018, amended by P.50 of
personnel comprise ALS licensed assessor, RSPO assessor list, and internal assessor). 2019 on the procedures of converting Convertible Production Forest area;
Since January 1st, 2015 the assessment must be conducted by HCV ALS Licensed
Assessor.
 - Minister of Forestry Regulation No.32 of 2010, amended by No.41 of
3. Indicator 7.7.1 2012, and then amended by 27 of 2014. The regulation was revised by
• Circumstances: the Minister of Environment and Forestry regulation No.97 of 2018 on
No New Planting on peatland, regardless of depth after 15 Nov 2018, in existing plantation exchanging forest areas.
areas, as well as in new development areas. - In the era of 1990, a joint decree of the Minister of Forestry, Minister of
Agriculture, and Head of National Land Affairs agency (BPN) No 364 of
• Description: 1990, No. 519 of 1990, and No.23 of 1990 on the release of forest estate
1. RSPO P&C in November 2018 stated that new planting on peatland, regardless of depth and granting cultivation right tittle (HGU) for agricultural practices. The
after 15 Nov 2018, in existing plantation areas, as well as in new development areas is characteristics of a forest estate that can be converted into farmland are
not allowed; the suitability of the soil to be cultivated for agricultural purposes and the
2. The definition of peatlands is referred from government regulations (PP) No.71 of 2016, forest itself is not designated as a permanent forest area.
and MOA regulation No.14 of 2009.
Indicator 3.7.:
Other role: Circumstances
New Planting Procedures (NPP), November 2015. This regulation should be imposed Having identified results on protected areas and high conservation values area.
by all plantation companies that have had new planting plan since 2010 outside
certification scope. • Description:

1. The types of protected areas for identification implementation refer from

Presidential Decree No. 90 of 1990;
2. The HCV Toolkit is used as a standard for the HCV assessment/identification;
3. There is also another guideline issued by the Directorate General of
Conservation of Natural Resources and Ecosystem of the Ministry of
Environment and Forestry No. 5 of 2017 regarding technical guidelines for
identifying high conservation values areas outside the nature reserves, nature
conservation area, and hunting parks.

Indicator 3.9.1.
Circumstances
The development of a new oil palm plantation area could not occur in the natural
forest and peatlands in accordance with the applicable laws and regulations.

The definition of a primary natural forest is the forests with a category consisting
of one type or a combination of appearances from primary dryland forest, primary
swamp forest and primary mangrove forest. The Director-General of Forestry
Planning and Environmental Management enacted regulation No.P.6 of 2019
which encompasses this definition.

Those documents included the alignment the map of plantation’s operational

area with natural forest and the indicative map on suspension or termination for
granting new permits (IPPIB) and the records that the oil palm growers do not
clear cut the primary forest and peatland areas.

The above information is regulated in the Presidential Instruction No. 10 of 2011,

No. 06 of 2013, No. 8 of 2015, No. 6 of 2017, and No. 5 of 2019.
The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia
CRITERIA
RSPO (P & C November 2018) ISPO (MOA regulation No. 38, 2018)
Environmental Aspect
Limiting land When the new Standard: Standard in Annex 1:
conversion: planting area 1. Indicator 7.5.1 • Indicator 2.2.1
Peatland is limited on • Circumstances: Circumstances:
Conservation the fragile A map that identifies marginal and fragile soils, including steep slope lands • The oil palm growers must have Standard Operational Procedures (SOP) on land clearing
is available including the management of land;
and marginal
• Description: • Applying the soil and water conservation principles in the process of clearing new land and the
soils (including 1. The fragile and marginal soils should be identified and mapped; operation of the plantation. This SOP must follow related applicable laws and regulations.
peat) is being 2. Definition of marginal and fragile soils in Annex 1 is available
proposed. 2. Indicator 7.6.1 and 7.6.2.: • Description:
Planning on • Circumstances: The certification unit must have a Standard Operational Procedures (SOP) on land clearing and land
soil protection 1. 7.6.1 : Evidence of long-term land suitability for oil palm cultivation, soil management in the operated plantation area that refer to the soil conservation principles.
should be maps, or soil surveys that identify marginal and fragile soils, including
developed steep terrain are available, in planning and operations The soil and water conservation principles are regulated in Laws No. 37 of 2014 and Minister of
and applied to 2. 7.6.2 : Extensive planting on marginal and fragile soils is avoided or, if Agriculture Regulation No. 131 of 2013.
necessary, carried out according to the best-practice soil management
protect the soil.
plan. • Indicator 2.2.4
So, any adverse • Description: Circumstances
impacts could 1. Soils survey and topography information are used for new planting site 1. SOP on technical guideline or working instruction for planting oil palm in peatlands.
be avoided. development and the results will also be integrated with the planning 2. Managing the subsidence of soil layers in the peatlands.
and operation work plan. So, the long-term oil palm cultivation plan will 3. The record documentation of planting activities in peatlands area in accordance with the
be available. procedures and/or laws and regulations.
2. One of the guidelines which could be referred to is MOA No.131 of 2013. • Description:
- The SOP for planting in peatlands must comply with the applicable laws and regulations
3. Indicator 7.7.2 and 7.7.7.: regarding the utilization of peat for the cultivation of oil palm.
• Circumstances: - For existing oil palm plantations in peatlands, the SOP on managing the declining layer of peat
1. 7.7.2 : peat areas within the managed area are inventoried, documented, is required. This includes the measuring equipment and the infrastructures related to planting
and reported to the RSPO secretariat (effective from Nov 15, 2018); management in peatlands;
2. 7.7.3 : peat subsidence is monitored, documented, and minimized; - The implementation documentation includes documents on peat depth identification in
3. 7.7.4 : availability of implementation evidence of the water and land the cultivation right title (HGU) areas, the result of the implementation of the SOP regarding
cover management program; planting and tending the oil palm in peatlands, the monitoring result of peatland subsidence,
4. 7.7.5 : Drainability assessments are conducted for plantations planted setting of groundwater level, as well as the document on identification and mapping of peatland
on peat following the RSPO drainability assessment procedure or other ecosystem outside plantation area which has the function for ecosystem protection.
method recognized by RSPO before replanting; Indicator 3.9.1.
5. 7.7.6 : All existing plantations on peat are managed according to Circumstances
applicable laws and/or RSPO guidelines for BMP for oil palm cultivation The development of a new oil palm plantation area could not occur in the natural forest and
that are already on peatlands version 3 (June 2019) along with related peatlands in accordance with the applicable laws and regulations.
audit guidelines (May 2019;
6. 7.7.7 : All peat areas not planted and reserved in managed areas • Description:
(regardless of depth) are protected as peatland conservation areas; ……… 1. The definition of primary natural forest is a forest with a category consisting of one type or a
along with relevant audit guidelines. combination of appearances from primary dryland forest, primary swamp forest, and primary
mangrove forest. The Director-General of Forestry Planning and Environmental Management
• Description: enacted regulation No.P.6 of 2019 which encompasses this definition;
1. The management of peatlands within concessionaire area should refer 2. Those documents included the alignment map of the plantation’s operational area with natural
to any applicable laws and/or RSPO guidelines for BMP for oil palm forest and the indicative map on suspension or termination for granting new permits (IPPIB) and
cultivation, drainability assessment prior to replanting phase; the records that the oil palm growers do not clear cut the primary forest and peatland areas;
2. All peat areas which are not planted and reserved in managed areas 3. The above information is regulated in the Presidential Instruction No. 10 of 2011, No. 06 of 2013,
(regardless of depth) are protected as peatland conservation areas. No. 8 of 2015, No. 6 of 2017, and No. 5 of 2019.
Greenhouse The planning Standard: Standard in Annex 1:
gas emission for greenhouse 1. Indicator 7.10.1 1. Indicator 3.8.1
reduction gas emission • Circumstances: • Circumstances:
reduction GHG emissions for the unit of certification are identified and assessed. Plans Having SOP on mitigating the GHG emission;
to reduce or minimize GHG emissions are implemented, monitored Having the inventory of the GHG emission source;
should be
through the palm GHG calculator, and reported publicly. Having the GHG emission result calculation;
developed and Having the history of land use document;
implemented • Description: Having the GHG mitigation document
to minimize Not for the development area.
emissions. • Description:
2. Indicator 7.10.2 The GHG mitigation document comprises a work plan or planning on reducing GHG emission and
• Circumstances: the documentation of a work plan implementation.
Since 2014, an estimate of carbon stocks in the proposed development area
has been carried out along with potential sources of emissions that can
occur directly as a result of the development, and plans to minimize
these emissions are prepared and implemented (following the RSPO
GHG Assessment Procedure for New Development);

• Description:
For development area.

Biodiversity Status of Rare, Standard: Standard in Annex 1:

conservation Threatened, 1. Indicator 7.12.6 Indicator 3.7 :
Endangered • Circumstances: • Circumstances:
(RTE) species All rare, threatened, or endangered (RTE) species are protected, whether or
not they are identified in an HCV assessment. • Having the result identification of protected areas and High Conservation Value areas.
and other
• Description: • Having SOP regarding protected areas and High Conservation Value areas;
potential - • Having a map showing the location and work plan management in the identified protected
habitats which 2. Indicator 7.12.7 areas and High Conservation Value areas;
has high • Circumstances: • Conducting socialization regarding protected areas and High Conservation Value areas to the
conservation The status of HCVs, HCS forests after 15 Nov 2018, other natural ecosystems, labours and adjacent communities;
value should be peatland conservation areas, and RTE species is monitored. Outcomes of • Implementing program activities to protect the protected areas and High Conservation Value
identified and this monitoring are fed back into the management plan. areas as well as reporting them to the authorities.
managed to • Description:
ensure that they - • Description:
are protected The HCV Toolkit is used as a standard for the HCV assessment/identification. Forest is one of
landscapes that obtained special consideration due to their biodiversity characteristics.
and/or There is also another guideline issued by the Directorate General of Conservation of Natural
increased their Resources and Ecosystem of the Ministry of Environment and Forestry No. 5 of 2017 regarding
population. technical guidelines for identifying high conservation values areas outside the nature reserves,
nature conservation areas, and hunting parks.

All rare, threatened, or endangered (RTE) species are part of conservation values in the HCV
identification.
Indicator 3.7.1:
• Circumstances:
1..Having SOP regarding biodiversity conservation and management;
2..Having a list of flora and fauna in the plantation and the adjacent area (from environment
document), pre and post the development of oil palm plantation.
The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia
CRITERIA
RSPO (P & C November 2018) ISPO (MOA regulation No. 38, 2018)
Environmental Aspect
Biodiversity Status of Rare, Threatened, • Description:
conservation Endangered (RTE) species and 1. List of prioritized flora and fauna in the RTE category or protected under government regulation, IUCN,
other potential habitats which has and other species that are not listed in the three categories;
high conservation value should be 2. Government regulation No. 7 of 1999 regarding the preservation of flora and fauna set the list of
protected flora and fauna species. This regulation had been amended to Minister of Environment and
identified and managed to ensure
Forestry Regulation No. P.20 of 2018, in conjunction with P.92 of 2018, and in conjunction with P.106 of
that they are protected and/or 2018;
increased their population. 3. Laws No. 5 of 1994 on ratifying the UN convention on biodiversity
4. Presidential decree No. 43 of 1978 regarding CITES ratification.

Social and Labour Aspects

The The evidence shows that Standard: Standard in annex 1:
1. Indicator 4.4.1.: 1. Indicator 1.1.1, 1.1.2 & 1.1.3:
appropriate the operator should have Circumstances: Circumstances:
land rights: the right to utilize the Documents showing legal ownership or lease, or 1.1.1: Land (site location) permit
authorized use of customary land authorized 1.1.2: Land acquisition
ensure land land property for their by customary landowners through an FPIC 1.1.3: Land rights (Cultivation right title, the right of building or right of use)
ownership operations. process. Documents related to the history of
by the land tenure and the actual legal or customary • Description:
use of the land are available. The process of obtaining the land acquisition and land rights from the state must comply with the
operator procedures of applicable laws according to the time of acquisition;
• Description: The following information is the list of applicable laws and regulations on land rights:
Documents showing legal ownership or lease, or a. Laws No. 5 of 1960 on basic agrarian rules;
authorized use of customary land authorized b. Government regulation No. 24 of 1997 regarding the land registration;
by customary landowners through an FPIC c. Government regulation No. 40 of 1996 regarding cultivation right title (HGU), the right of the building
process. Documents related to the history of (HGB), or right of use for the land (Hak Pakai);
land tenure and the actual legal or customary d. Ministry of Home Affairs Regulation No. 15 of 1975 on the provision regarding procedures for land
use of the land are available. acquisition;
e. Minister of Agrarian/Head of National Land Affairs regulation No.2 of 1993 regarding the procedures for
obtaining site location permits and land rights for companies;
f. Minister of Agrarian/Head of National Land Affairs regulation No.2 of 1993 amended by No. 15 of 2015
regarding site location permit;
g. Minister of Agrarian/Head of National Land Affairs regulation No.5 of 1999 on guidelines in addressing
the issue of customary rights of indigenous people;
h. Head of National Land Affairs regulation No.2 of 2011 on guidelines for technical consideration of land
in the issuance of site location permit, site location designation, and land-use change permit
i. Minister of Agrarian/Head of National Land Affairs regulation No.3 of 1999 regarding delegation
authority to grant or revoke the decision of the rights over the state land;
j. Minister of Agrarian/Head of National Land Affairs regulation No.9 of 1999 regarding the procedure of
granting and revoking the (state) land rights and the management right.
No children No child labour or any forced Standard: Standard in annex 1:
labour instructions in labour are 1. Indicator 6.4.1.: 1. Criteria 4.4:
performed. Circumstances: Circumstances:
A formal policy for the protection of children, including the The use of child labor and discrimination in employment (the oil palm growers are
prohibition of child labour and remediation is in place and prohibited from employing minors and discriminate according to the laws and
included in service contracts and supplier agreements. regulations).

• Description: • Description:
This policy is not only binding in the certification unit but also 1. Starting from oil palm growers’ policy related to the prohibition of employing minors
applies to sub-contractors (service contracts, Fresh Fruit Bunch in accordance with the applicable labour laws. This applies to all levels of workers
(FFB) suppliers, and others). and temporary/contractor workers.
2. Record of the employee list comprising the information on names, education,
2. Indicator 6.4.2.: position, place, date of birth, etc.
Circumstances: 3. A sign prohibiting children from dangerous work locations for children. This sign must
Documented evidence on the fulfilment of workers’ minimum age have been known by all workers and their families.
requirements in accordance with applicable regulations and
verification procedures for age requirements are available. The following information is the list of applicable laws and regulations:
• Description: - Laws No. 13 of 2003 regarding labour. Article 1 defines what children are and article
The (Indonesian) national interpretation mandates that the 68 states and regulates that the employer must not hire minors;
certification unit should not employ/hire people under 18-year- - Laws No 20. of 1999 on ILO ratification No. 138 of 1973 regarding the standard age
old. limitation for working or getting a job;
3. Indicator 6.4.2.: - Laws No. 23 of 2002 in conjunction with No. 35 of 2014 on children protection;
Circumstances: - Laws No. 1 of 2000 on ILO ratification No. 182 regarding the prohibition and
The unit of certification demonstrates communication about its no immediate action for the elimination of the worst forms of child labour;
child labour policy and the negative effects of child labour and - Minister of Labour and Transmigration Regulation No. 235 of 2003 regarding the types
promotes child protection to supervisors and other key staff of dangerous works for the health, safety, or children’s morals;
smallholders, FFB suppliers, and communities where workers - Laws No.21 of 1999 on ILO ratification No. 111 of 1958 regarding the discrimination at
live. work and positions.
• Description:-

No forced No child labour or any forced Standard: Standard in annex 1:

labour instructions in labour are 1. Criteria 6.6.: 1. Indicator 4.2.2:
performed. Circumstances: Circumstances:
No form of forced or trafficked labour is used. There is a policy in place that regulates how oil palm growers prohibit any types of forced
• Description: labour or slavery in executing the operational activities.
1. There are things that are prohibited. Labour forms are not
accepting any free and voluntary work. This includes retaining • Description:
any identity documents or passport, payment for recruiting Starting from the written policy, socialization, and up to the implementation in the
process, amending labour contracts unilaterally, forced overtime fields, stating that there is no any type of forced labour or slavery in executing the
work, prohibiting workers quitting from their job, and penalty operational activities.
fees for contract termination; The definition of forced labour is informed on ILO convention No 105, this convention had
2. Definition of forced or trafficked labour on Annex 1 was been ratified by Indonesia through enacting law No. 19 of 1999;
available. The following information is the list of applicable laws and regulations:
- Laws No. 13 of 2003 on labour (article 32 on forced labour);
- Laws No. 19 of 1999 on ILO ratification No. 105 regarding the elimination of forced
labour;
- Laws No. 39 of 1999 on human rights (article 20 regulates on rights not to be
enslaved);
- Laws No. 21 of 2007 on the criminal act of human trafficking.
The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia
CRITERIA
RSPO (P & C November 2018) ISPO (MOA regulation No. 38, 2018)
Environmental Aspect
Ensuring the The Health and Standard: Standard in annex 1:
health and Safety of the 1. Criteria 3.6.: 1. Criteria 4.1:
safety of the workers are Circumstances:
workers secured. Circumstances: Applying Health and Safety Environment (HSE)
OHS plan is documented, effectively communicated, and
implemented. • Description:
The indicator regarding to the HSE policy, organization, and emergency response, emergency
• Description: infrastructure, HSE organization, risk identification and implementation plan which has been
- informed to the management and workers, HSE instruction, medical check-up, HSE training, personal
protective equipment (PPE) and reports.
2. Criteria 6.7.: The following information is the list of applicable laws and regulations
Circumstances: a. Laws No. 1 of 1970 on HSE;
The unit of certification ensures that the working environment under b. Government regulation No.50 of 2012 on applying HSE management system/SMK3 (article 3 related
its control is safe and without undue risk to health. to HSE)
• Description: c. Minister of Labour regulations No. 4 of 1987 on Oversee Committee for Occupational Safety and
The indicator includes the establishment of the Supervisor Health (P2K3)
Committee on Health and Safety Environment (HSE) (the d. Minister of Labour decree No. 4 of 1993 on accident assurance;
organization, meeting, and discussed issues), emergency e. Minister of Labour and Transmigration Decree No. 609 of 2012 on case settlement guideline of work
response procedures, work accident, first aid officer, training on accidents and occupational diseases.
first aid, accidents note list, personal protective equipment (PPE),
sanitation facility for pesticide workers, health services, accident
insurance, and Lost Time Accident (LTA).

Ensuring The workers’ Standard: Standard in annex 1:

the rights of right to form 1. Criteria 6.3.: 1. Criteria 4.5:
workers in labour union Circumstances: Circumstances:
labour unions and collectively The unit of certification respects the rights of all personnel to form The facility to establish labour union (the oil palm growers facilitate the establishment labour union in
and collective discuss or bargain and join trade unions of their choice and to bargain collectively. order to defend and stand up for the labour’s rights)
discussion or is respected and Where the right to freedom of association and collective
bargaining. secured. bargaining is restricted under law, the employer facilitates • Description:
parallel means of independent and free association and The indicator comprises the document of labours union establishment and meeting between oil palm
bargaining for all such personnel. growers and the labours union as well as applying the policy, list of labours union members,
mechanism procedures in delivering opinion and complaints, policy regulation on gathering,
• Description: developing, or joining the organization or labours union.
This indicator comprises the statement on freely involved in the
labour union and collective bargaining in Bahasa Indonesia The following information is the list of applicable laws and regulations
from the published certification unit, explained to all workers, Laws No. 21 of 2000 on Labours union
and implemented. Also, the minutes of the meeting between the Laws No. 13 of 2003 on Labours
certification unit and labour union.

Government Aspect
Compliance Laws and national Principle 2. The operation is run legally as well as respecting the Principle 1.
with Laws regulations from local rights. Implementing any legal provisions as a fundamental The compliance of the plantation business legality including the land rights and the legality of oil-palm
(outside Japan) the origin country principle of the operation in any jurisdiction. growers (plantations).
have complied Criteria 2.1. There is compliance with all appropriate laws and
regulations at the local, national, and ratified international level; Regarding the land rights, the oil-palm growers must have the following information and/or documents:
- A land permit issued by the authorities and attaching the relevant map according to the district or
The appropriate statutory regulations in this regard include but are provincial spatial planning (RTRW/RTRWP);
not limited to: - Oil palm plantations coming from convertible production forests must have a permit of forest estate
1. Rights on land and its utilization; release from the Ministry of Environment and Forestry (MoEF/KLHK) or Investment Coordinating
2. Labours affairs; Board/Ministry of Investment (ICB/BPKM);
3. Agricultural practices (e.g., chemical material usage) - Letter of consent on the principle of exchanging forest areas when the plantation comes from
4. Environment (e.g., laws on wildlife protection, pollution, forestry, production forest and limited production forest;
and environmental management; - Fully informed consent with comprehensive information (no coercion) from indigenous people. This
5. Transportation and processing practice. applies if the land for the plantation uses customary land.
- Legal land rights according to the applicable laws.
The referred statutory regulations include any new (revised)
legitimated laws as the country’s obligation towards ratified Regarding the legality of plantation business, the following information and/or documents are required:
international or convention as well as recognized customary - The oil palm growers must be a legal entity that has all required permits to be recognized as a
laws. business legal institution;
- Must have an environmental permit issued by the relevant authority in accordance with the
The RSPO P&C standards – Indonesian National Interpretation, applicable laws and regulations;
Nov 2019 stated that the dominant information of requirement - Facilitating the development of smallholder plantations of the local communities in accordance with
compliance referred to the imposed statutory regulations in the the applicable laws and regulations;
Republic of Indonesia. - Have a legal plantation business permit.

Criteria for compliance with laws and regulations for plantation companies are required to have the
following documents/information:
- Land legality
- The business legality of the plantation;
- Legality and the management of community smallholders;
- Community smallholders’ location;
- Land dispute, compensation, and other disputes;
- Business legality of smallholders; and
- Obligations regarding environmental permits;

Principle 1.
The compliance of the plantation business legality including the land rights and the legality of oil-palm
growers (plantations).

Regarding the land rights, the oil-palm growers must have the following information and/or documents:
- A land permit issued by the authorities and attaching the relevant map according to the district or
provincial spatial planning (RTRW/RTRWP);
- Oil palm plantations coming from convertible production forests must have a permit of forest estate
release from the Ministry of Environment and Forestry (MoEF/KLHK) or Investment Coordinating
Board/Ministry of Investment (ICB/BPKM);
- Letter of consent on the principle of exchanging forest areas when the plantation comes from
production forest and limited production forest;
- Fully informed consent with comprehensive information (no coercion) from indigenous people. This
applies if the land for the plantation uses customary land.
- Legal land rights according to the applicable laws.
The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia
CRITERIA
RSPO (P & C November 2018) ISPO (MOA regulation No. 38, 2018)
Environmental Aspect
Provision and Ensure that the Principle 1. Ethical and transparent principles should be performed. Principle 6. The implementation of transparency includes the source of FFB, determination of fair and
Disclosure of certified entity Encourage ethical business conducts and urge trust and transparent FFB pricing, disclosure of information (non-confidential) and complaint handling,
Information gives the right transparency with all stakeholders to ensure great and healthy commitment to not involve in bribery affairs, and the supply chain system that can trace the following
information to the relationships. information:
Regarding the FFB, oil palm growers must have:
stakeholders.
Criteria 1.1. The certification unit provides sufficient information - The system to trace the supplier source of FFB;
to the stakeholders regarding environmental, social, and any - The list of FFB suppliers to the oil palm mill;
relevant laws attributed to the RSPO criteria. Appropriate - Provide up-to-date information periodically on FFB prices to the FFB suppliers.
language and forms should be applied in order to achieve
effective and participatory decision-making. Regarding disclosure of the information, oil palm growers should provide data and information to
related institutions and other stakeholders (except any confidential information) in accordance with
The above criteria indicator is related to the management document applicable laws and regulations.
which corresponds to the environmental, social, and law issues in The criteria for transparent oil palm growers are:
accordance with the compliance with the RSPO criteria. - The source of FFB (including suppliers);
- The calculation of the K index (determination of FFB price) and transparent supporting document;
Management documents comprise the result of the FPIC process, - The determination of fair and transparent FFB pricing;
Social and Environmental Impact Assessment (SEIA/AMDAL), - Disclosure information (non-confidential) and complaint handling;
humans right (including the protection of human rights defenders, - Commitment to not involve in bribery affairs
witnesses, and whistle-blowers), the social programs to mitigate - Traceable supply chain system.
the adverse social impact and improve the standard of living, The criteria for transparent suppliers (community smallholders) are:
number of gender distribution in labour which is categorized - The agreed pricing and selling of FFB
in management, administrative staff, and workers (permanent, - Provision of data and information
temporary, and pieceworkers), a partnership program with
smallholders, education and health programs in the community.

Renewal/ The regulations Information regarding renewal/cancelation certificate is explained The information on the implementation certification process is regulated in the Minister of Agriculture
cancelation on renewal and in the RSPO P&C & ISH certification system 2020 as follow No.38 of 2020, as the following information:
Certificate cancelation information: The certification processes consist of the three following phases:
certification have - The maximum validity certificate of P&C RSPO is 5 (five) years. 1. The first audit
been available. The certification body ought to conduct an Annual Surveillance 2. The second audit
Assessment (ASA) during the validity period of the certificate and 3. The decision-making of certification
a compliance audit recertification before the end of 5 (five) year
period; The first audit:
- Fail to comply with all principles and criteria is a non- - The first audit is conducted within 3 months period after signing the ISPO certification agreement;
compliance. This will be subjected to the categorized indicators - If the results meet the assessment principles, it will proceed to the second audit;
(minor or major); - If the results do not meet the assessment principles, the auditee is given 6 months in order to
- At the initial certification; if there is a major category of non- improve the findings in the first audit. The first audit can be terminated if the auditee could not fulfill
compliance, the certificate will not be issued until it is addressed. the assessment requirements and it will be informed to the applicants about the reason for audit
The time duration for the fulfilment is 12-month after the termination.
closing meeting and the re-audit will be undertaken afterward.
Meanwhile, for the minor category of non-compliance, the The second audit:
verification will be conducted in the Annual Surveillance - Sampling method is used for the audit.
Assessment (in the coming year). - If the result meets the assessment principles, then, it will be forwarded to the decision-making of
- At the Annual Surveillance Assessment (ASA), if the minor non- certification;
compliance finding is not addressed, then it will be upgraded - If the results do not meet the assessment principles, the auditee is given 6 months in order to improve
into major while for the major category, the issued certificate the findings in the second audit. The second audit can be terminated if the auditee could not fulfill
will be suspended or revoked immediately; the assessment requirements and it will be informed to the applicants about the reason for audit
termination.

The Decision making

- The certification body must make a decision within 1 month after the audit process is completed;
 - The major non-compliance which is raised during the annual - The decision-making can be the issuance of the ISPO certificate or refusal to grant the ISPO
surveillance assessment should be successfully addressed certificate;
within 90 days or the certificate will be suspended and could - The decision to grant the ISPO certificate will be followed by issuing the certificate and be published
be revoked if it is not overcome as agreed time. This has to be on the certification body’s website within 30 days of the ISPO certificate decision;
agreed upon between the certification body (CB) and RSPO - Decision on refusal to grant the ISPO certificate, the application is returned accompanied with the
members (maximum within 6 month time period from the latest explanation, the audit finding, and other relevant arguments.
audit);
- The certification body should have documented all procedures The ISPO certificate is valid for five years.
regarding the requirements of suspension and revocation. This is An expired ISPO certificate must be renewed by submitting the application for recertification no later than
to ensure that client terminates all promotional and advertising 6 months before the expiration of the ISPO certificate.
material containing any reference to certified status (15.12.1);
- The certification body must inform RSPO within 1 (one) The process of recertification
working day, along with the effective date and justification for - The first and second audit is also conducted during the recertification process as the initial
suspension or revocation (15.12.2); certification process. If there are no significant changes that affect ISPO principles and criteria,
- After suspension and termination of the certificate, the therefore, the same ISPO certification body can undertake the second audit phase. The significant
recertification audit is required for regranting the new certificate changes are any changes related to permitting documents, plantation area, and/or the mills capacity
(15.12.4). (size);
- The decision to recertify is decided on the expiration of the ISPO certificate and no later than 4 (four)
months from the last day of the audit phase 2;
- The ISPO-certified oil palm growers should be monitored by the ISPO certification body. The first
monitoring should be performed between 9 to 12 months from the date of the certification. The next
monitoring will be conducted a maximum 1 year after the previous monitoring;
- If there are some findings during the surveillance assessment, the applicants should address the
findings within 3 months after the closing of the surveillance meeting.
Suspension can be given to the ISPO-certified bodies. In this case, they are asked to improve and fulfil the
requirements within 6 months after the decision of suspension. The ISPO certificate will be revoked or
terminated if they don’t comply with the ISPO standards.

Supply Chain Aspect

Ensuring the This can be RSPO has regulated the supply chain requirements for oil palm ISPO has regulated the supply chain requirements for oil palm mills and has integrated with the Minister
supply chain verified through mills. This has been integrated into 2018 P&C, principle 3.8; of Agriculture Regulation No. 38 of 2020 article 30 and annex 1 principle 6.6.
the entire supply
chain that all used There are two types of supply chain models namely Identity There are two types of supply chain models namely The segregated model and Mass Balance (MB)
biomass fuels for Preserved (IP) and Mass Balance (MB)
generating the The segregated model is required that all raw materials of FFB (100%) must be certified by ISPO at all
power have been The Identity Preserved (IP) model is if the company harvests the stages of production. The storing process and shipping transportation in all supply chain processes.
certified. FFB from the certified plantations which have complied with the
RSPO’s principle and criteria or according to the group certification Model Mass Balance is required that at least 30% of raw materials have been certified for the first
scheme; surveillance. Furthermore, the additional increasing number of certified FFB materials is required in the
following year.
The Mass Balance (MB) model is for CPO mills that receive a certain
volume of certified and uncertified FFB. This might occur when they
receive from local smallholders who don’t have certificates apart
from their own and third-party certified suppliers.
According to the above scenario, the mills can only claim the
volume of palm oil products produced from the certified FFB
processing as Mass Balance.
The comparison of ISPO and RSPO Certification to achieve Sustainable palm oil production in Indonesia
CRITERIA
RSPO (P & C November 2018) ISPO (MOA regulation No. 38, 2018)
Environmental Aspect
The legality of FFB All FFB supplies from outside certification unit come from legal In the Minister of Agriculture Regulation, the ISPO criteria 6.1 requires that oil palm mills have a system
raw materials sources; to identify the source of FFB suppliers (all ISPO certified products or not). The mills and their supply
RSPO Indicator 2.3.1. All directly sourced FFB must have the chain are required to have SOPs that elaborate the procedures of receiving from all supplier sources
following information; including the purchase of FFC from third parties. In addition, the information of legal source, criteria,
- Information on geo-location of FFB origins and determination category of the risk suppliers are regulated in the SOP.
- Proof of the ownership status or the right/claim to the land by the
grower/smallholder ISPO requires to have a history list of FFB supplier list names and an up to date FFB sources.
- Where applicable, valid planting/operating/trading license, or is
part of a cooperative which allows the buying and selling of FFB.
Meanwhile, for all indirectly sourced FFB, a certification unit is
obtained from the collection centre, agent, or other distributors.

The third party verification

Ensuring the The accreditation - The RSPO issued the system certification requirements as The operational of ISPO is referred from Presidential regulation No. 44 of 2020 regarding the
characteristic process of the guidelines for a certification body to act and as a reference in certification system of sustainable oil palm plantation in Indonesia and Minister of Agriculture
of the third Certification Body accrediting; Regulation No. 38 of 2020.
party in the (CB) - Each certification body must be accredited by an accreditation
accreditation agency; 1. Every certification body must be accredited by an accreditation body;
process - The accreditation agency is the Assurance Services 2. The accreditation agency is National Accreditation Committee (KAN), this is mentioned in the
certification International (ASI); Presidential Regulation No. 44 of 2020;
body and - The duration of accreditation is five years and an annual 3. The accreditation period of the certification body is regulated by the accreditation body;
final decision surveillance assessment. 4. The certification body must be enlisted in the ministerial or government agencies that work for
to grant the plantation or relevant affairs;
certification 5. The National Accreditation Committee (KAN) is a member of the International Accreditation
Forum (IAF), Pacific Accreditation Cooperation (PAC), International Laboratory Accreditation
Cooperation (ILAC), dan Asia Pacific Laboratory Accreditation Cooperation (APLAC). The
credibility of the KAN logo is recognized by all members of IAF, PAC, ILAC, or APLAC.

The final - The certification body must prepare the certification audit The original assessment report certification is assessed by the auditor team from the Certification
decision on report. The certification body should submit the draft Body and submitted to the certification decision-maker unit. This process should be done within a
certificate report for peer review. The peer reviewer should not be the maximum of one month after all audit processes.
approval permanent or temporary staff of the certification body. The
certification body will only complete the report after the ISPO certification is issued by Certification Body. The certificate is signed by the head of the
analysis from the peer. The final decision on certification Certification Body.
approval is made by the certification body;
- The auditor and peer reviewer must be listed in the The ISPO certification body must submit a report to the ISPO committee regarding the following
accreditation agency; information:
- The certification body should issue the certificate and send a. The issued ISPO certificate; and
the copy to the RSPO secretariat along with the certification b. The list of oil palm growers that still have to improve and/or fulfill the ISPO principles and criteria.
report. The registration and approval from RSPO to issue the
activation license on the specially built portal (palm trace) for The ISPO auditors must have a competency test certificate from the Professional Certification
trading the certified products. Institute that has been licensed by the National Agency of Professional certification (BNSP)