Draft Presidential Regulation on Sustainable Palm Oil Being Prepared

The Government is preparing a Draft Presidential Regulation (“RPerpres”) on the National Action Plan for Sustainable Palm Oil (Rencana Aksi Nasional Kelapa Sawit Berkelanjutan – “RAN-KSB”). Ermanto Fahamsyah, Professor of Economic Law at the University of Jember and a member of the Expert Council of the Indonesian Palm Oil Association, stated that the Presidential Regulation is intended to continue Presidential Instruction No. 6 of 2019 concerning the National Action Plan for Sustainable Palm Oil Plantations 2019–2024 (“Inpres 6/2019”), which expired in November 2024.

“The Presidential Instruction needs to be extended, but it no longer in the form of a presidential instruction; instead, it will take the form of a Presidential Regulation. From a legal perspective, this is intended to provide greater legal certainty,” Ermanto told Hukumonline

Having been involved in the discussions with the Government, Ermanto explained that the RPerpres would serve as a roadmap for the central government, regional governments, and other stakeholders in strengthening the sustainability of palm oil sector. A fundamental change in this new strategy is the expansion of its scope, which no longer focuses solely on the upstream cultivation sector, but also extends to downstream industries and bioenergy.

The RPerpres contains five strategies, namely: strengthening coordination and institutional capacity; enhancing the capacity and capability of human resources; improving governance and environmental monitoring; developing downstream industries and accelerating sustainable certification; and increasing market access.