Regulation on Sustainable Indonesian Palm Oil

Minister of Agriculture Regulation No. 19/Permentan/OT.140/3/2011 on Sustainable Indonesian Palm Oil Guidelines (“Regulation”) has been issued to implement Article 33 (4) of the 1945 Constitution regarding sustainable and environment-based national economic development. This Regulation is also aimed at improving public welfare, state income, and foreign exchange.

Pursuant to Article 2, the Regulation’s Appendix, which contains the Indonesian Sustainable Palm Oil (ISPO) Guidelines, is a reference for palm oil businesses to comply with obligations under the prevailing laws and regulations to protect and to promote the sustainable palm oil industry.

The Regulation has one appendix, which consists of six chapters. Chapter I of the Appendix stipulates the key terms that will be used throughout the Guidelines. The key terms are, amongst others: ISPO (as elaborated on in Section 1.6 of Chapter I ); plantation permit (izin usaha perkebunan/IUP, as elaborated on in Section 1.7 of Chapter I); cultivation plantation permit (izin usaha perkebunan untuk budidaya/IUP-B, as elaborated on in Section 1.8 of Chapter I); and permanent plantation permit (izin tetap usaha perkebunan/ITUP, as elaborated on in Section 1.11 of Chapter I).