Indonesian Palm Oil Industry Enhances Sustainability with New Labor Standards

Strengthening Worker Protections

The Indonesian palm oil industry is taking significant steps to improve labor practices through the implementation of new Indonesian Sustainable Palm Oil (ISPO) certification standards. The Ministry of Agriculture's recent regulation, Permentan 33/2025, has introduced 5 critical criteria and 36 specific labor indicators that all palm oil companies must comply with to achieve certification.

Key Focus Areas

The new standards particularly emphasize the elimination of child labor and the promotion of gender equality in the industry. According to Baginda Siagian, Director of Palm Oil and Various Palma Plants at the Ministry of Agriculture, all company activities must now align with the 17 Sustainable Development Goals (SDGs) and be completely free from child labor. The ISPO certification process will rigorously verify compliance with these requirements.

Industry Implications

This regulatory development comes at a crucial time for Indonesia's palm oil sector, which faces ongoing challenges related to sustainability and labor practices. By strengthening the ISPO standards, the government aims to enhance the industry's international reputation and maintain its export performance. The new measures are expected to impact both large plantation companies and smaller operators, requiring them to adapt their labor practices to meet the enhanced certification criteria.

Path Forward

The implementation of Permentan 33/2025 represents a significant step towards modernizing Indonesia's palm oil industry standards. As companies work to comply with the new regulations, the industry is likely to see improvements in worker welfare and operational sustainability. The Ministry of Agriculture will play a crucial role in monitoring compliance and ensuring that the new standards are effectively enforced across the sector.