Accelerating ISPO Downstream Certification Key to Indonesia’s Global Palm Oil Competitiveness

Reported by from an official statement by the Ministry of Industry on Monday (April 13, 2026), Minister of Industry Agus Gumiwang Kartasasmita emphasized that the agro-industry, including palm oil, plays a crucial role in supporting national economic growth.

He noted that the agro sector contributes 52.09% to non-oil and gas GDP, equivalent to around 9% of Indonesia’s total GDP. This performance is also reflected in the Industrial Confidence Index (IKI) for March 2026, which stood at an expansion level of 51.86.

Indonesia’s palm oil industry remains the backbone of the agro sector, with plantation areas exceeding 16 million hectares and crude palm oil (CPO) production reaching 51.66 million tonnes in 2025.

Acting Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, revealed that palm oil exports and derivatives reached US$44.65 billion in 2025, generating a trade surplus of US$43.23 billion.

“About 93% of exports come from downstream palm oil products, highlighting the success of the downstreaming policy in creating added value and economic multiplier effects,” he stated.

The government is also pushing product diversification, with downstream palm-based products increasing from 48 types in 2011 to 208 types in 2025.

However, global challenges remain, particularly related to transparency, sustainability, and supply chain traceability. To address these issues, the government has issued Presidential Regulation No. 16/2025 on ISPO certification, reinforced by Minister of Industry Regulation No. 38/2025.

The regulation will take effect on May 12, 2026, with mandatory compliance for downstream industries starting March 19, 2027.