ISPO extended downstream

Indonesia has ordered palm oil refiners and manufacturers to get Indonesian Sustainable Palm Oil certification by March 19, 2027, extending the rule beyond plantations. (tempo.co) The deadline comes from Presidential Regulation No. 16 of 2025, signed on March 19, 2025, which says downstream palm oil industries must comply within two years of its issuance. (peraturan.go.id) The Ministry of Industry is handling the technical rollout through Minister of Industry Regulation No. 38 of 2025, which sets certification procedures for downstream companies. Acting Agro Industry Director General Putu Juli Ardika said companies now have less than a year to prepare the needed systems and supporting infrastructure. (tempo.co) Indonesian Sustainable Palm Oil is the government’s own sustainability standard for the palm oil business. Under the 2025 presidential regulation, it covers plantations, downstream industry and palm oil-based bioenergy, not just estates and mills. (peraturan.bpk.go.id) That is a change from the earlier 2020 framework, which focused mandatory certification on plantation businesses. Industry and trade publications say the new rules now pull in cooking oil, margarine, soap, oleochemicals, biodiesel, biomass and biogas producers. (infosawit.com) The push comes as Indonesia leans harder on processed palm products. The Indonesian Palm Oil Association said total palm oil exports reached 32.343 million tons in 2025, up 9.51 percent from 2024, with processed products driving much of the increase. (asia-pacific-solidarity.net) Export earnings have also climbed. The association said January-to-June 2025 palm oil export value reached US$17.277 billion, up 34.64 percent from the same period a year earlier. (gapki.id) Indonesia is also tightening traceability as buyers demand more supply-chain data. The European Union’s deforestation regulation covers palm oil and processed goods sold into the bloc, and requires companies to provide due diligence and traceability information. (ec.europa.eu) Business groups have backed the broader direction while asking for workable implementation. The Indonesian Palm Oil Association said last year that extending Indonesian Sustainable Palm Oil downstream could strengthen competitiveness, while ministry officials said the rule is meant to improve legality, traceability and sustainability across the value chain. (gapki.id) The next test is execution. Refiners, food manufacturers and chemical producers now have until March 19, 2027, to show that Indonesia’s sustainability rules apply not only where palm fruit is grown, but also where it is turned into finished products. (tempo.co)