InfoSAWIT, KUALA LUMPUR – The Malaysian Sustainable Palm Oil (MSPO) standard has achieved a significant milestone by being officially listed on the ITC Standards Map. This recognition underscores Malaysia's commitment to sustainability, traceability, and responsible palm oil production.
The ITC Standards Map, developed by the International Trade Centre (ITC), is the world’s largest database for sustainability standards. The ITC, a joint agency of the United Nations (UN) and the World Trade Organization (WTO), plays a crucial role in promoting sustainable trade and global market access.
This inclusion strengthens the MSPO's credibility as a benchmark for sustainable practices, enhancing its visibility among international buyers and solidifying Malaysia's position as a leader in sustainable palm oil production.
For international buyers, this milestone offers assurance of acquiring traceable and sustainable palm oil. For Malaysian smallholders, it expands access to global markets, fostering inclusivity and competitiveness. The industry as a whole benefits from Malaysia’s reinforced presence in global trade and its demonstrated commitment to sustainability.
“We extend our gratitude to the ITC Standards Map team, the Ministry of Plantation and Commodities (MPC), and the Department of Standards Malaysia (DSM) for their invaluable support in achieving this milestone,” stated the MSPO team in a release on Friday, December 6, 2024.
The MSPO standard, now accessible via the ITC Standards Map, allows global stakeholders to gain deeper insights into Malaysia's sustainable practices.
The Challenge for ISPO
While Malaysia advances its global recognition, Indonesia’s Indonesian Sustainable Palm Oil (ISPO) certification program continues to face challenges. The mandatory implementation of ISPO is set for 2025, encompassing both businesses and independent smallholders. However, progress has been slow.
Out of Indonesia’s 16.38 million hectares of palm oil plantations, only 5.84 million hectares (35.6%) have been certified under ISPO, with 1,077 certificates issued. Despite a decade of promotion and efforts, ISPO certification remains far from its target.
Since 2019, Indonesia has initiated pre-conditioning efforts through the National Action Plan for Sustainable Palm Oil (RAN KSB), aiming to improve governance and readiness for mandatory ISPO implementation. Yet, regional adoption has been limited, with only 10 provinces and 22 districts enacting related policies.
Challenges include high certification costs, complex processes, legal issues, limited socialization, and inadequate human resource and institutional capacity. The diverse characteristics of smallholders across regions further complicate ISPO implementation.
In response, the Indonesian government is revising regulations to address these challenges while maintaining sustainability principles. Key steps include expediting the issuance of plantation business registration letters (STDB) and providing financial support for ISPO certification through the Palm Oil Plantation Fund Management Agency (BPDPKS).
“Our focus is accelerating implementation while balancing process simplification with maintaining sustainability integrity,” stated Prayudi Syamsuri, Director of Processing and Marketing of Plantation Products, at an event in September 2024.
This recognition of MSPO highlights the contrasting progress between the two countries' sustainability standards, offering valuable lessons as Indonesia seeks to strengthen its ISPO framework. (T2)
