Expanding Market Access Through ISPO Tiering

Jatmiko Krisna Santosa, President Director of PT Perkebunan Nusantara IV/PalmCo (“PTPN IV”), proposed the implementation of Indonesian Sustainable Palm Oil (“ISPO”) tiering to expand global market access for Indonesian palm oil. According to him, dividing ISPO into several tiers can make the national certification system more flexible in tailoring palm oil products to the characteristics and needs of each export destination country.

“For example, when it comes to the African and Indian markets, RSPO (Roundtable on Sustainable Palm Oil) certification may not be necessary, but the European market requires it,” he said.

Jatmiko believes the grading approach allows domestic producers to categorize palm oil products based on the sustainability requirements of each target market. Thus, the industry can continue to uphold sustainability principles through a more tactical and efficient implementation. Producers do not need to apply the highest standards to markets that do not require them.

He is optimistic that this grading mechanism can strengthen the bargaining power of Indonesian palm oil because it addresses sustainability demands through a national framework that aligns with international standards. Furthermore, classification based on sustainability levels allows Indonesian palm oil products to be tailored to the specific needs of each market.