Multi-stakeholder engagement in the Indonesian Sustainable Palm Oil (ISPO) framework

Abstract

There has been an increasing concern in the development of sustainability in Indonesia. Indonesia's sustainability policy through Indonesian Palm Oil Sustainability (ISPO) and recently Presidential Decree Number 44 of 2020 on Certification System for Sustainable Palm Oil Plantations prove the government's seriousness in managing palm oil. Growing global market demand requires the expansion of oil palm plantations. Unfortunately, land expansion can cause environmental hazards, such as deforestation, loss of biodiversity, increased greenhouse gas emissions, and green land damage. On the other hand, the threat to sustainable development in the palm oil industry and pressure from stakeholders for more responsible industrial practices require sustainable production activities and minimize environmental and social impacts through sustainability principles. The government, companies, smallholders, palm oil associations, and INGO/NGO strive to build synergies in finding strategic solutions under the ISPO certification scheme. This article explores the involved actors in the palm oil industry and the relationship pattern between actors. Methodologically, the author uses a qualitative method and multi-stakeholder approach to invent how actors deal with sustainability issues in the palm oil industry and carry out sustainability commitments. The results show that Indonesia faces economic, social, and environmental imbalance. In implementing ISPO certification, Indonesia has involved all multi-stakeholder actors: state, company, IGO, and civil society.