PAPER: Obligations of Indonesian Sustainable Palm Oil (ISPO) certification for oil palm plantation companies in North Sumatera to support sustainable development


The international oil palm plantation business, there are two well-known certifications, namely the Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO). They are both certifications of oil palm plantations that adhere to sustainable and environmentally sound principles, the former being mandatory while the latter being voluntary. The obligation of ISPO is regulate by the Ministry of Agriculture Regulation No. 19 of 2011 concerning Guidelines for Sustainable Oil Palm Plantation in Indonesia. The ISPO certification required by the Government to be obtained by oil palm plantation companies can contribute to all stakeholders. ISPO certification allows oil palm plantation companies to export CPO to the Southeast Asian market, Medan being the connecting satellite city. There are several head offices of oil palm plantation companies in Medan which contribute in the form of levies and export taxes. Also, the Corporate Social Responsibility (CSR) program is conduct in the Medan region. Every oil palm plantation company under ISPO certification must be audit for its compliance, including the implementation of the CSR Program. The increase in CPO exports originating from oil palm plantation companies in Sumatra can indirectly turn the wheels of the economy Medan. Locally-generated revenue increases with licensing fees from the head offices of plantation companies in Medan.


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