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Periode 2019 - 2024

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PREFACE

Palm oil is an important commodity worldwide and is advantageous to many industries, particularly food-related industries. Statistics Indonesia (BPS) states that in 2017 the palm oil industry employed 5.5 million workers directly and 12 million workers indirectly, making the palm oil industry’s total employment reach 17.5 million people and contributing to USD 20 billion in export revenue. As the world’s largest palm oil producer, Indonesia has committed to sustainably produce palm oil for consumers around the globe. Sustainable palm oil development involves many stakeholders, henceforth strong coordination and synergy between stakeholders is vital. Indonesian Sustainable Palm Oil Forum or FoKSBI has been created to strengthen coordination between stakeholders. The forum has come up with the National Action Plan for Sustainable Palm Oil (NAP SPO). The NAP SPO is intended to be a road map to improve the governance of the palm oil industry and ultimately increase the sustainability of the industry. The NAP SPO will be legalized into a presidential instruction to ensure the NAP SPO activities are being implemented by the relevant ministries, institutions and other stakeholders. The NAP SPO is expected to address many challenges and fulfil the international market’s demand for sustainable palm oil products, namely through supporting the implementation of the oil palm plantation permit deferment and evaluation policy, as regulated in the Presidential Instruction No. 8/2018; and through helping achieve the Sustainable Development Goals (SDGs), according to the Presidential Regulation No. 59/2017. The approval of this document demonstrates the government and all stakeholders’ commitment in supporting sustainable palm oil development.

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Table of Contents List of Abbreviations and Acronyms ........................................................................ 4

Glossary of Terms ................................................................................................... 7

I. Background ................................................................................................... 10

II. The Objectives of the National Action Plan on Sustainable Palm Oil (NAP SPO) ..................................................................................................................... 11

III. The Relationship Between the NAP SPO and the Sustainable Development Goals ............................................................................................................. 11

IV. The NAP SPO Preparation Process ................................................................. 12

V. Implementing the NAP SPO ............................................................................. 13

VI. Monitoring and Evaluating the NAP SPO Implementation .............................. 13

COMPONENT A: STRENGTHENING OF DATA, COORDINATION AND

INFRASTRUCTURE .......................................................................................... 15

A1: Strengthening basic oil palm plantation data to support better plantation management ........................................................................................................ 15

A2: Fostering the implementation of Thematic Geospatial Information (IGT) on the oil palm plantation cover .......................................................................................... 17

A3: Increasing the socialization of regulations and policies pertaining to the sustainable oil palm plantation business for smallholders and stakeholders ..... 19

A4 : Increasing synergy between ministries/government agencies regarding the oil palm plantation business ..................................................................................... 21

A5: Establishing a regional sustainable palm oil production implementation team in the form of a multi-stakeholder sustainable palm oil forum at the provincal and district/city level ................................................................................................... 23

A6: Road construction to support the improvement of oil palm plantations ............. 24

A7: Increasing coordinative legal compliance for oil palm plantation businesses ...... 25

COMPONENT B: BUILDING SMALLHOLDERS CAPACITY AND CAPABILITY ................ 27

B1: Building the capacity and capability of smallholders in using certified seeds. ..... 27

B2: Building the capacity and capability of smallholders in implementing good agricultural practices ............................................................................................ 30

B3: Increasing access to plant replanting funding for smallholders ............................ 31

B4: Accelerating the formation and strengthening of smallholder institutions .......... 34

B5: Increasing agricultural extension services in central palm oil producing regions . 36

COMPONENT C: ENVIRONMENTAL MANAGEMENT AND MONITORING ................. 38

C1: Increasing efforts to conserve biodiversity and plantation landscapes ................ 38

C2: Preventing plantation and land fires ..................................................................... 42

C3: Reducing greenhouse gas (GHG) emissions across plantation and land sectors .. 45

C4: Improving the MRV (measurement, reporting, and verification) of potential GHG emission reductions in oil palm plantations ........................................................ 48

C5: Increasing the use of critical land as an effort to reduce greenhouse gas (GHG) emissions in oil palm plantations ......................................................................... 49

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C6: Increasing the utilization of palm oil waste to increase palm oil’s economic value chain ..................................................................................................................... 51

C7: Increasing the use of palm oil products as renewable energy to promote energy security ................................................................................................................. 53

COMPONENT D: PLANTATION GOVERNANCE AND DISPUTE MANAGEMENT .......... 54

D1: Accelerating the realization of corporate obligations to facilitate the development of sustainable oil palm plantations in local communities ............. 54

D2: Handling oil palm plantation land disputes in areas of other uses (APL) ............. 56

D3: Improving the oil palm plantation settlement process in forest areas................. 57

D4: Improving the legalization of land incurred from declaring plantation status in forests and the settlement of land disputes ........................................................ 59

D5: Improving the process of settling land status for plantation businesses located within peatland ecosystems ................................................................................. 61

D6: Conducting a review of labor regulations related to monitoring the implementation of occupational safety and health systems; (K3) and Workers' Social Security, and its dissemination in oil palm plantation businesses ............ 62

COMPONENT E: SUPPORTING THE ACCELERATION OF INDONESIAN SUSTAINABLE

PALM OIL (ISPO) CERTIFICATION AND ACCESS TO THE PALM OIL PRODUCT MARKET ........................................................................................................ 64

E1: Increasing ISPO socialization for national stakeholders ........................................ 64

E2: Accelerating the implementation of ISPO certification for companies and smallholders ......................................................................................................... 65

E3: Carrying out diplomacy, promotion and advocacy towards the acceptance of the ISPO system by the international market ............................................................ 67

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List of Abbreviations and Acronyms

3P People, Planet, Profit

ABKT High Conservation Value Areas

ASN

State Civil Apparatus

ATR/BPN

Agrarian Spatial Planning/State Land Agency

BIG Geospatial Information Agency

BPDP-KS Oil palm plantation Fund Management Agency

BPN National Land Agency

BPP Agricultural Counselling Centre

BPS Central Bureau of Statistics

BSN National Standardization Agency

BUMN State Owned Enterprises

CPO Crude Palm Oil

DAS Watershed

Dirjen Director General

Ditjen Directorate General

FoKSBI Indonesian Sustainable Palm Oil Forum

GAP Good Agricultural Practices

GAPKI Association of Indonesian Palm Oil Entrepreneurs

GRK Green House Gases

IGT Thematic Geospatial Information

HCV High Conservation Value

ISPO Indonesian Sustainable Palm Oil System

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IUP Plantation Business License

K3 Occupational Safety and Health

KEE Essential Ecosystem Area

K/L Ministry/Institution

KTPA Fire-free farmers group

KUD Village Unit Cooperative

LEM Community Economic Institution

MoEF Ministry of the Environment and Forestry

MRV Measurement, Reporting and Verification

NSPK Norms, Standards, Principles, Criteria

PDB Gross Domestic Product

Pemda Regional Government

Perdirjen Director General Regulation

Permentan Minister of Agriculture Regulation

PKS Palm Oil Mill

PLP-TKP Field Officer Assisting Contract Staff Assistant

PLTB Land Clearing without Burning

POME Palm Oil Mill Effluent

PPNS Civil Servant Investigator

PSR Communities’ Oil Palm Replanting

PUP Plantation Business Evaluator

RAD Regional Action Plan

NAP SPO National Action Plan for Sustainable Palm Oil

SDM Human Resources

TBS Fresh Fruit Bunches

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TKP Contract Staff Assistant

SDGS Sustainable Development Goals

UU Law

USD United States Dollar

7

Glossary of Terms

High Conservation Value Area

High Conservation Value Area (HCVA): a patch of land that is especially important for biodiversity conservation and producing environmental services (ecosystems). They are crucial for local communities (Perdirjen KSDAE Number P.5/KSDAE/KUM.1/9/2017).

BPDPKS An agency established by the Ministry of Finance based on Presidential Regulation No. 61, dated May 18th, 2015, regarding the collection and use of funds for oil palm plantations. BPDPKS has the duty to collect funds from oil palm plantation businesses, financial institutions, community funds and other legitimate sources in the form of export levies or derivatives and contributions.

Clear and Clean

The clear ownership of undisputed land that is located outside the Forest Zone and does not overlap with other permits.

Deforestasi

Gross deforestation, i.e. changes in land cover conditions from the forested land cover class to the non-forested land cover class1.

Essential Ecosystem

Ecosystems outside the ecological, socio-economic and cultural conservation areas; they have important values for biodiversity conservation including natural and/or man-made ecosystems inside and outside forest areas (Draft Regulation by the Minister of the Environment and Forests on Guidelines for Protecting Essential Ecosystem Areas).

FoKSBI Forum for stakeholder coordination to provide input, views and recommendations regarding the actions needed to encourage economic growth through the development of sustainable oil palm plantations, while ensuring environmental protection and community welfare.

GAP Good Agricultural Practices aimed at improving output quality based on pre-determined standards: guaranteeing high incomes, ensuring healthy production techniques, maximizing efficiency in the use of natural resources, encouraging sustainable agricultural practices and minimizing environmental risks.

GAPKI The Indonesian Palm Oil Association. Members include Indonesian oil palm plantation companies and palm oil producers. It was established on February 27th, 1981.

1 MoEF, 2015, National Forest Reference Emission Level for REDD+ In the Context of Decision 1/CP.16

Paragraph 70, Directorate General of Climate Change. The Ministry of Environment and Forestry. Indonesia.

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GRK Gases in the atmosphere that cause the greenhouse effect. These gases naturally appear in the environment, but their production can be catalysed by human activity.

Forest

Land area of at least 0.25 ha that is overgrown with trees with a percentage of canopy closure of at least 30% that at the end of growth reaches a minimum height of 5-meters or more (Regulation of the Minister of Forestry Number P.14/Menhut-II/2004).

HCV An HCV is a biological, ecological, social or cultural value of outstanding significance or critical importance.

Responsible Institution

Ministries or institutions that are the leading actor in coordinating, implementing and carrying out an activity.

ISPO Indonesian Sustainable Palm Oil: a mandatory certification system for sustainable palm oil production in Indonesia.

IUP

Written permission from an authorized official that any plantation company must have.

Essential Ecosystems Area (KEE)

Ecosystems outside conservation areas that ecologically, socio-economically and culturally are important for biodiversity conservation. They include natural and/or man-made ecosystems in and outside forest areas that have been designated as protected areas and are managed based on conservation principles (Draft Regulation of the Minister of Environment on Guidelines for Protecting Essential Ecosystem Areas).

Community Farms

Farms that are owned and/or managed independently by the community. Community farms contained in the RAN include smallholder farms and independent plantations.

SPO

Sustainable Palm Oil: the approach used in palm oil production by considering environmental, economic and social principles.

Critical Land

Land inside and outside the forest area that no longer self-regulates its water management system. Agricultural practices on this land disrupt the watershed ecosystem balance (Government Regulation of the Republic of Indonesia No 76/2008).

Supporting Institution

Institutions that provide technical, financial or other means of support as needed in implementing an action plan.

One Map Policy

One map policy: a policy that integrates land use, land ownership and spatial data into a single database. It is a reference for all ministries and institutions in Indonesia.

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Smallholders

Smallholders are Indonesian citizens, either male or female, who work in a plantation business that is not yet large-scale. (Law No. 39/2014 regarding Plantations).

NAP SPO NAP SPO is a document that explains the activities to be carried out by palm oil sector stakeholders in realizing sustainable palm oil development in Indonesia.

POME

The process of filtering liquid waste from palm oil mill (PKS). PKS is wastewater produced by the palm oil mills that mainly comes from boiled condensate, hydrocyclone water and sludge separators.

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I. Background Globally, palm oil has an important role as a raw material for food, non-food and energy production. Global demand for palm oil has risen sharply due to an increased global population, its cheap production costs compared to other vegetable oils and its diverse uses. For Indonesia, palm oil has a substantial role in supporting national development. In 2017, the commodity contributed to 8% of Indonesia’s GDP as their third largest export value (more than USD 20 billion or equivalent to 13.7% of Indonesia's total exports). In various rural areas in Indonesia, oil palm plantations are the main economic growth drivers that stimulate agribusiness development, upstream and downstream. Based on data from the Statistics Indonesia (BPS), in 2017 the oil palm plantation industry absorbed 5.5 million direct workers and 12 million indirect workers, allowing total employment to reach 17.5 million people. Palm oil has become a source of income for many communities and generates added value that plays a significant role in increasing national income. Considering the importance of palm oil for Indonesia, the sector needs to develop with sustainable principles in mind. The national palm oil industry has greatly benefitted the country, but it still faces numerous challenges and therefore needs an effective strategy to improve and maintain palm oil sustainability. Currently, one of the largest challenges the palm oil industry faces is: how to increase the commitment and involvement of palm oil stakeholders to promote sustainable development within the sector. Several plantation business actors have led business activities to encourage sustainability in line with the 3P principles (People, Planet, Profit). However, most have yet to realize or apply it. The importance of sustainable oil palm plantation development has been mandated in Law No. 39/2014 regarding Plantations. Many programs and initiatives that support sustainable plantations have been facilitated by the government and other stakeholders including land mapping, educating smallholders about effective farm management practices, efforts to protect peatlands, preventing land fires and improving governance in high conservation value areas in a plantation landscape. The Indonesian government showed their commitment to balance economic and socio-cultural development as well as environmental preservation through developing the sector, in their issuance of a regulation regarding the Indonesian Sustainable Palm Oil (ISPO) Certification System, regulated in Ministry of Agriculture Regulation No. 11/2015. To increase the commitment and coordination between the government and stakeholders in the framework that would ultimately accelerate the achievement of sustainable oil palm plantations in Indonesia, it is necessary to have an integrated and measurable plan. This plan is set forth in the NAP SPO.

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II. The Objectives of the National Action Plan for Sustainable Palm Oil (NAP SPO)

The NAP SPO has been prepared in line with the government's commitment to realize the development of sustainable oil palm plantations. The NAP SPO has involved all stakeholders in the implementation of sustainable palm oil development. The objectives of the NAP SPO are as follows: 1. As a reference document for various stakeholders in the execution of sustainable

oil palm plantation development in Indonesia, and to support the government in achieving their target for certified palm oil production in 2020 (Ministry of Agriculture Regulation No. 11/2015).

2. As a mechanism to strengthen the coordination and synergy between various parties in achieving Indonesia’s sustainable palm oil development goals.

3. As an instrument to improve sustainable oil palm plantation development implementation monitoring.

III. The Relationship between NAP SPO and the Sustainable Development Goals

In the presence of world leaders, the United Nations ratified the Agenda for the Sustainable Development Goals (SDGs) on September 25th, 2015 in New York City, United States. The SDGs was inclusively designed, involving all development stakeholders such as the government, the private sector, academics and civil society organizations. With the principle of "No One Left Behind", as applied to the SDGs, the NAP SPO also provides an opportunity for all parties to contribute to the fulfilment of the Indonesian SDGs. Inserted below is a table that illustrates the contribution of each NAP SPO activity to its respective objectives in the SDGs.

Component SDGS Fulfilment

Data Strengthening, Coordination and Infrastructure

Increased Capacity and Capability of Smallholders

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Component SDGS Fulfilment

Environmental Management and Monitoring

Governance and Conflict Management

Implementation of ISPO Certification and Market Access for Palm Oil Products

Accordingly, it can be concluded that all activities in the NAP SPO are assisting Indonesia in achieving the Sustainable Development Goals.

IV. The NAP SPO Development Process The NAP SPO was prepared by stakeholders, led by the government, and was discussed in the Indonesian Sustainable Palm Oil Forum (FoKSBI). The preparation of the NAP SPO by FoKSBI started with the designing process, beginning at the end of 2014. In 2015, the dialogue process between stakeholders in FoKSBI included activities such as identifying the root causes of unsustainability, compiling recommendations for sustainable development and consulting parties at the national and provincial levels, as set forth in the NAP SPO. The NAP SPO preparation accommodated input from more than 500 representatives from 100 organizations within Indonesia. The NAP SPO outlines the strategic actions that forum participants believe are needed within the next five years (2020-2024) in details, allowing stakeholders to rapidly improve the social, economic and environmental performance of the palm oil sector. With the signing of the NAP SPO by the President, the NAP will need to be implemented by all stakeholders.

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V. Implementing the NAP SPO The implementation of NAP SPO will be carried out either collaboratively between the government, key partners and other parties, or independently by institutions or organizations. This action plan will be predominantly implemented in the 26 palm oil producing centres in Indonesia, namely:

1) Aceh 2) North Sumatera 3) Riau 4) Riau Islands 5) Jambi 6) South Sumatera 7) Bengkulu 8) West Sumatera 9) Bangka Belitung 10) Lampung 11) Banten 12) West Java 13) West Kalimantan 14) Central Kalimantan 15) South Kalimantan 16) East Kalimantan 17) North Kalimantan 18) South Sulawesi 19) Central Sulawesi 20) West Sulawesi 21) Southeast Sulawesi 22) Gorontalo 23) Maluku 24) North Maluku 25) Papua 26) West Papua

VI. Monitoring and Evaluating the NAP SPO Implementation In line with the framework to monitor the commitments of the stakeholders in implementing the NAP SPO, the Indonesian government will establish an Implementation Team at the national, provincial and district levels. Monitoring will be carried out in line with the prepared monitoring and evaluation mechanism. The NAP SPO consists of various activities, that have either been carried out by stakeholders or new activities that have yet to be carried out. The Monitoring Committee maps and monitors the implementation of the NAP SPO’s activities.

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The NAP SPO flow chart from the preparation, implementation, monitoring and evaluation processes can be observed in the following graph. Figure 1. The NAP SPO Flowchart

“It is very important to apply green economy values in the development of the sustainable palm oil sector.” - Darmin Nasution, Coordinating Minister for Economic Affairs, 2015 - 2019

PREPARATION OF THE NATIONAL ACTION PLAN

CONSULTATION OF THE NATIONAL ACTION PLAN

FORMULATION OF THE NATIONAL ACTION PLAN

ANALYSIS OF ROOT PROBLEMS

IMPLEMENTATION OF THE NATIONAL ACTION PLAN

By: the Indonesian Government, Private Sector

and NGOs

MONITORING AND EVALUATION (MONITORING

COMMITTEE)

RENEWAL OF THE NATIONAL ACTION PLAN

SUSTAINABLE INDONESIAN PALM

OIL

2015

2017

2019

2024

BY WORKGROUP

1 - 4

NAP VALIDATION OF THE STEERING

COMMITTEE

COMPONENT A: STRENGTHENING OF DATA, COORDINATION AND INFRASTRUCTURE

A1: Strengthening basic oil palm plantation data to support better plantation management Context: Oil palm plantations, cultivated by smallholders, make up 36.5% of CPO production in Indonesia (Ditjenbun 2016). With this contribution, smallholders play a very strategic and important role in the development of sustainable oil palm plantations. However, they still face many challenges in smallholders capacity building, namely the absence of basic data regarding the amount and locations of plantations. Basic data on smallholders is vital in many ways, which can be used for proper distribution of fertilizer subsidies and replanting funds, the socialization of various regulations and training sessions related to sustainable oil palm plantations. Objective: To obtain regularly updated accurate smallholders and other oil palm-related data and information.

No

Program

Activity Output Time of

Implementation

Agency in Charge

Supporting Agency

A. STRENGTHENING DATA, COORDINATION AND INFRASTRUCTURE

1 Strengthening basic oil palm plantation data to support better plantation management

1.1. Prepare guidelines for smallholders data collection.

Compilation of guidelines for data collection on smallholders that are accepted by stakeholders at the National, Provincial and Regency / City levels.

2019

Ministry of Agriculture

1. Ministry of the Environment and Forestry

2. Ministry of Agrarian and Spatial Planning/ National Land Agency

3. Ministry of National Development Planning/National Development Planning Agency

16

No

Program


Implementation

Agency in Charge

Supporting Agency


4. Geospatial Information Agency

5. Statistics Indonesia 6. Oil Palm Plantation

Fund Management Agency

7. Provincial Governments 8. District/Municipal

Governments 9. Business actors

1.2. Update the Thematic Geospatial Information (IGT) on oil palm plantation cover

Availability of the updated Thematic Geospatial Information (IGT) on oil palm plantation cover

2019 - 2024 Ministry of Agriculture

1. Ministry of the Environment and Forestry

2. Ministry of Agrarian and Spatial Planning/National Land Agency


4. Statistics Indonesia 5. Provincial Governments 6. District/Municipal

Governments 7. Business Actors

1.3. Collect smallholders data

1.3.1. Availability of smallholders data

2019 - 2024


1. Coordinating Ministry of Economic Affairs

17

No

Program


Implementation

Agency in Charge

Supporting Agency


along with their location mapping which are updated periodically.

along with their location mapping which are updated periodically in 26 palm oil producing provinces.

1.3.2. Availability of

indicative plantation maps which need to be replanted in 21 provinces.

2019 - 2024

2. Ministry of National Development Planning/Head of the National Development Planning Agency



5. Statistics Indonesia 6. Oil Palm Plantation

Fund Management Agency

7. Provincial Government 8. District/Municipal

Government 9. Business actors

A2: Fostering the implementation of Thematic Geospatial Information (IGT) on the oil palm plantation cover Context: A one-map policy was first introduced in 2010. This policy is expected to resolve some of the challenges and obstacles in the development process that frequently lead to land disputes due to overlapping land use. Objective: To obtain IGT on the cover of oil palm plantations.

18

No

Program


Implementation

Agency in Charge

Supporting Agency


2 Fostering the implementation of Thematic Geospatial Information (IGT) on oil palm plantation cover

2.1. Compilation and

integration of oil

palm plantation

cover IGT from

various

ministries/institution

s relevant to palm oil

production.

The availability of an integrated

IGT for oil palm plantations

cover.

2019-2024

Geospatial Information Agency

1. Ministry of Agriculture

2. Ministry of Agrarian

and Spatial Planning/

National Land Agency

3. Ministry of the

Environment and

Forestry

4. Ministry of Internal

Affairs

5. Provincial

Governments

6. District/Municipal

Governments

7. Business actors

2.2. Prepare guidelines

or Norm, Standard,

Procedure, Criteria

(NSPK) for

participatory

mapping

The availability of guidelines or

NSPK for participatory mapping

2021 Geospatial Information Agency


2. Ministry of Agrarian and

Spatial Planning/ National

Land Agency

3. Ministry of the

Environment and Forestry


Affairs

5. Provincial Governments


Governments

19

No

Program


Implementation

Agency in Charge

Supporting Agency


7. Business Actors

2.3. Conduct

participatory

mapping training for

relevant sub-national

agencies, companies

and communities in

plantation locations.

2.3.1. The availability of

participatory mapping

facilitators

2.3.2. Implementation of

participatory mapping in

pilot areas

2020 - 2024 Geospatial Information Agency



Spatial Planning/


3. Ministry of the

Environment and

Forestry

4. Provincial Government


Governments

6. Business actors

A3: Increasing the socialization of regulations and policies related to the sustainable oil palm plantation business for smallholders and stakeholders Context: One of the obstacles to sustainable palm oil development in Indonesia is smallholders and other stakeholders having deficient knowledge and understanding of essential regulations to sustainable palm oil development. There needs to be continuous socialization of regulations pertaining to sustainable palm oil development to ensure all parties know, understand and implement existing regulations. Objective: Increased stakeholder knowledge and compliance with sustainable palm oil regulations and policies.

20

No

Program


Implementation Agency in Charge

Supporting Agency


3 Increasing the socialization of regulations and policies pertaining to the sustainable oil palm plantation business for smallholders and stakeholders

3.1. Develop effective

communication

strategies and

socialization plans

for smallholders and

other stakeholders

Issuance of communication

strategies and socialization

plans on regulations and

policies related to sustainable

oil palm plantation

development in all 26 palm oil

producing provinces in a

periodic basis.



Affairs

2. Ministry of the

Environment and

Forestry




4. Ministry of

Communication and

Information

5. Ministry of Manpower

6. Oil Palm Plantation

Fund Management

Agency

7. Provincial

Governments


Governments

9. Business actors

3.2. Undergo the

socialization of

regulations and

policies in line with

the communication

strategy and

socialization plan

Implementation of the

socialization of regulations and

policies, in line with the

communication strategy and

socialization plan, at the central

level and in all 26 palm oil



Affairs

2. Ministry of the

Environment and

Forestry

21

No

Program



Supporting Agency


producing provinces n a

periodic basis.




4. Ministry of

Communication and

Information

5. Ministry of Manpower


Fund Management

Agency

7. Provincial

Governments


Governments

9. Business actors

A4: Increasing synergy between ministries/government agencies regarding the oil palm plantation business Context: Developing oil palm plantations involves various technical government institutions such as the Ministry of Agriculture; the Ministry of Environment and Forestry; the Ministry of Agrarian and Spatial Planning; the Ministry of Trade; the Ministry of Industry; regional governments. The support of each institution is crucial to increase the sustainability of the sector, but the synergy between the institutions has yet to reach its potential at the central or regional level. Therefore, synergy and coordination are imperative in designing policies that promote a sustainable palm oil industry. Objective: Increase synergy between ministries/government institutions related to sustainable oil palm plantations.

22

No

Program



Supporting Agency

A. COMPONENT OF DATA STRENGTHENING, COORDINATION STRENGTHENING AND INFRASTRUCTURE

4 Increasing synergy between ministries/government agencies regarding the oil palm plantation business

4.1. Synchronize oil palm

plantation business

policies in a periodic

basis

Synchronized policies 2019 - 2024

Coordinating Ministry for Economic Affairs


2. Ministry of the

Environment and

Forestry




4. Ministry of Trade


Affairs


Fund Management

Agency

4.2. Synchronize data

and information in

each ministry/

institution

The availability of

synchronized data and

information in each

ministry/institution.

2019 - 2024

Coordinating Ministry for Economic Affairs

1. Ministry of National

Development

Planning/National

Development Planning

Agency

2. Ministry of Finance


4. Ministry of the

Environment and

Forestry





23

No

Program



Supporting Agency



Affairs


Fund Management

Agency

9. Geospatial Information

Agency

10. Statistics Indonesia

11. Provincial

Governments


Governments

A5: Establishing a regional implementation team in the form of a multi-stakeholder sustainable palm oil forum in the palm oil producing provinces and districts/municipals Context: The NAP SPO will be implemented in provinces and districts, making the role of provinces and regencies key. In the framework that ensures coordinated implementation and monitoring of the NAP SPO, a regional implementation team needs to be established consisting of members of government and other stakeholders. Objective: To establish a regional implementation team that is responsible to implement the NAP SPO’s actions, and simultaneously perform monitoring.

24

No

Program



Supporting Agency


5 Establishing a regional implementation team in the form of a multi-stakeholder sustainable palm oil forum in the palm oil producing provinces and districts/municipals

5.1. Establish a regional

implementation

team in the form of

a multi-stakeholder

sustainable palm

oil forum in the

palm oil producing

provinces and

districts/municipals

The establishment of a regional

implementation team in the

form of a multi-stakeholder

sustainable palm oil forum in

all 26 palm oil producing

provinces.

2020 1. Provincial Governments

2. District/ Municipal Governments



Affairs

3. Business actors

A6: Road construction and improvement to support the improvement of oil palm plantation business quality Context: Inadequate infrastructure is a common challenge in Indonesia, the palm oil industry included. Mandatory infrastructure in the palm oil industry includes roads in farms, village roads, district roads, province roads and ports to deliver product. Poor road conditions make seedling transportation, plant maintenance, fertilization and the transportation of FFB or CPO products difficult. Road infrastructure improvement programs are necessary in supporting sustainable palm oil development.

Objective: Improved infrastructure to support the development of a sustainable palm oil industry.

No

Program



Supporting Agency


6 Road construction and improvement to support the improvement of oil

6.1. Construct and

improve the quality

of roads in palm oil

producing provinces

The construction of roads that

meet quality standards in palm

oil producing provinces and

districts/ municipals

2019 - 2024 Ministry of Public Works and Public Housing


Affairs

2. Ministry of National

Development

25

No

Program



Supporting Agency


palm plantation business quality

and districts/

municipals

Planning/National

Development

Planning Agency

3. Ministry of

Agriculture

4. Ministry of Villages,

Disadvantaged

Regions and

Transmigration


Fund Management

Agency

6. Provincial

Governments


Governments

A7: Increasing coordinative legal compliance by oil palm plantation businesses actors Context: In the sustainable palm oil industry framework, greater efforts to assess legal compliance is critical. This will have a positive impact on increasing the credibility of the national palm oil industry so that it can improve product acceptance and competitiveness of oil palm plantations at the international level. Several identified violations of the law are among others: (1) issuance of business licenses and utilization of land rights that are not conform the regulations, (2) land occupation, (3) theft of TBS, CPO and other by-products, (4) price discrimination, (5) forgery of certified palm oil seeds, fertilizers, pesticides and (6) land clearing by burning. Therefore, a strong commitment from the government is needed to carry out evaluations of compliance to the laws and regulations. Objective: Increased compliance of the parties to the laws and regulations that apply in the development of the sustainable palm oil industry.

26

No

Program



Supporting Agency


7

Increasing coordinative legal compliance by oil palm plantation businesses actors

7.1. Establish an inter-

agency working

groups to improve

legal compliance

Establishment of an inter-

agency working groups to

improve legal compliance

2020 Ministry of Agriculture

1. Ministry of the

Environment and

Forestry


and Spatial

Planning/National

Land Agency

3. Ministry of

Manpower

4. Provincial

Government


Governments

7.2. Increase the number

and improve the

competence of Civil

Servant

Investigators (PPNS)

An increased number and

improved competence of PPNS

from 28 to 100 personnel in 21

provinces

2020 - 2024


1. Ministry of the

Environment and

Forestry


and Spatial

Planning/ National

Land Agency

3. Ministry of State

Apparatus

Utilization and

Bureaucratic Reform

4. Ministry of Law and

Human Rights

27

No

Program



Supporting Agency


5. National Police

Department

6. National Attorney

Office

7. Provincial

Government


Governments

COMPONENT B: IMPROVING SMALLHOLDERS’ CAPACITY AND CAPABILITY

B8: Improvement of the capacity and capability of smallholders in using certified seeds

Context: Indonesian palm oil producers generally have limited knowledge and skills to apply to sustainable plantation practices; they typically use uncertified palm oil seeds. This reduces productivity in palm plantations owned by independent smallholders. To address this problem, efforts are needed to increase the provision of certified seeds in a timely manner, at affordable prices and in adequate quantity. If this is addressed, economic, social and environmental challenges will naturally be reduced. Objective: To improve palm oil smallholders’ knowledge and skills in the use of certified seeds and to increase their use, seeds need to be affordable and accessible for smallholders who plant on their legal land

28

No Program Activity Output

Time of Implementation

Agency in Charge

Supporting Agency

B. SMALLHOLDERS’ CAPACITY AND CAPABILITY BUILDING

8 Improvement of the capacity and capability of smallholders in using certified seeds

8.1. Conduct

socialization

regarding the use of

certified seeds

The implementation of

socialization regarding the use

of certified seeds in 21

provinces



Fund Management

Board

2. Provincial

Governments


Governments

4. Business actors

8.2. Conduct the

socialization of

partnership

programs among:

a. seed producers

owning seed

producing

plantations

b. seed producers

who cultivate

seeds and/or

c. agricultural state-

owned enterprises

The implementation of

socialization about partnership

programs in 21 provinces

among:

a. seed producers who own

seed source plantations

b. seed producers who

cultivate seeds and/or

c. agricultural state-owned

enterprises

2020 - 2024


1. Ministry of State-

Owned Enterprises

2. Provincial

Governments


Governments

4. Seed producing

companies

8.3. Develop partnership programs among: a. seed producers

owning seed

The establishment of partnerships in 21 provinces among: a. seed producers who own

seed source plantations

2019 - 2024



Owned

Enterprises

2. Provincial

Governments

29

No Program Activity Output

Time of Implementation

Agency in Charge

Supporting Agency


source plantations

b. seed producers who cultivate seeds and/or

c. agricultural state-owned enterprises

b. seed producers who cultivate seeds and/or

c. agricultural state-owned enterprises


Governments

4. Seed producing

companies

8.4. Facilitate to improve

the commitment of

seed producers’

producing ready-to-

sell seeds to sell

certified seeds.

The establishment of an

agreement between seed

producers producing ready-to-

sell seeds with seed producers

owning seed source plantation

to sell certified seeds in 21

provinces

2019 - 2024



Owned Enterprises

2. Provincial

Government


Governments

4. Seed producing

companies

8.5. Improve supervision in the supply and distribution of certified seeds to their designated planting locations

The implementation of supply and distribution of certified seeds to planting locations in 21 provinces in a periodic basis.


1. Provincial

Governments


Governments

30

B9: Improving the capacity and capability of smallholders in implementing good agricultural practices (GAP) Context: Most smallholders in Indonesia have a poor understanding of GAP and therefore do not reach their potential palm oil production or the potential productivity of their land. Thus, smallholders require quality technical cultivation training to enable them to increase their palm oil production through land intensification. Objective: Increase the number of smallholders implementing good agricultural practices

No

Program Activity Output Time of


Supporting Agency


9 Improving the capacity and capability of smallholders in implementing good agricultural practices (GAP)

9.1 Develop technical

guidelines for

monitoring and

evaluation of the

GAP training result

implementation

The establishment of technical

guidelines for monitoring and

evaluation of the GAP training

result implementation

2020 Ministry of Agriculture

1. Provincial

Governments


Government

3. Business actors

9.2. Conduct GAP

training at the

provincial and

district/municipal

level either by the

government or

multi-stakeholder

partnerships in a

periodic basis

The implementation of GAP

training at the national and

provincial level either by the

government or multi-stakeholder

partnerships in a periodic basis



Fund Management

Agency

2. Provincial

Governments


Governments

4. Business actors

9.3. Increase the

certification of

competence

Increased competence in the oil

palm plantation



Fund Management

Agency

31

No



Supporting Agency


related to oil palm

plantation.

2. Provincial

Governments


Governments

4. Business actors

9.4. To conduct

extension service

on GAP principles

to smallholders

Implementation of extension

activities on GAP principles for

500 smallholder groups in 21

provinces


1. Provincial

Governments


Governments

3. Business actors

B10: Increasing smallholders’ access to replanting fund

Context. Replanting oil palm is an urgent activity to maintain sustainable palm oil production. It is estimated that there are 2.4 million ha of palm oil that need to be replanted. Thus, funding for replanting is an important factor. With funding support for replanting, smallholders can carry out the replanting process in accordance with good agricultural practices. Objective: Increase the allocation of funds for smallholders’ replanting program

32

No



Supporting Agency


10 Increasing smallholders’ access to replanting fund

10.1. Increase the socialization of access to funding from banks or other financial institutions

Implementation of socialization of access to funding from banks or other financial institutions in 21 provinces


1. Ministry of

Finance


Owned

Enterprises

3. Provincial

Governments


Governments

5. Business actors

10.2 Enhance the

capacity of

smallholders in

meeting the

requirements to

get technical

recommendation

for oil palm

replanting

An increased number of smallholders who have met the requirements to get technical recommendation for oil palm replanting in 21 provinces



Owned Enterprises


Fund Management

Agency

3. Provincial

Government


Governments

5. Business actors

10.3. Improve funding support for Smallholders Oil Palm Replanting Program (PSR)

Increased funding for PSR from Oil Palm Plantation Fund Management Agency (BPDPKS) and other legitimate sources


1. Coordinating

Ministry for

Economic Affairs


Fund Management

Agency

3. Business actors

33

No



Supporting Agency


10.4. To improve a smooth distribution of PSR funds to smallholders

Increased realisation on distribution of replanting funds to smallholders in 21 provinces


1. Coordinating

Ministry for

Economic Affairs


Owned Enterprises

3. Provincial

Governments


Governments


Fund Management

Agency

6. Business actors

10.5. Evaluate the utilization of PSR funds

Availability of issues evaluation report and follow-up recommendations concerning the utilization of PSR funds in 21 provinces



Owned Enterprises


Fund Management

Agency

3. Provincial

Governments


Governments

5. Business actors

34

B11: Accelerating the formation and strengthening of smallholder institutions Context: Smallholders play a significant role in sustainable palm oil development. The development of sustainable palm oil is a necessity in the effective organization of smallholders in an institutional platform; examples include: farmer groups, cooperatives, farmer associations and LEM Sejahtera (Prosperous Community Economic Institution). Additionally, the establishment of institutional platforms is also intended to improve smallholders’ bargaining positions; banking access and production; and smallholders’ marketing input. However, currently the number and capacity of smallholder farmer institutions is still inadequate. Objective: Increasing the number and enhancing the performance of smallholder’s institutions

No



Supporting Agency


11 Accelerating the formation and strengthening of smallholder institutions

11.1. Aocialization and guidance in the formation of smallholders’ institutions

11.1.1. Implementation of

socialization and

guidance in the

formation of

smallholders’

institutions in 26 palm

oil producing provinces

in a periodic basis

11.1.2. The establishment of

legal smallholders’

institutions in the form of

cooperatives, and/or

village-owned enterprises

(BUMDES) in 26 palm oil

producing provinces

2019 - 2023

2019 - 2023


1. Ministry of

Cooperatives &

Small and Medium

Enterprises

2. Ministry of Home

Affairs


Development of

Disadvantaged

Areas and

Transmigration

4. Provincial

Governments


Governments

6. Business actors

35

No



Supporting Agency


11.2. Strengthen

smallholders’

institutions

Improvement in the managerial

capacity of smallholders’

institution managers in 26 palm

oil producing provinces in a

periodic basis


1. Ministry of

Cooperatives &

Small and Medium

Enterprises

2. Ministry of Home

Affairs


Development of

Disadvantaged

Areas and

Transmigration

4. Provincial

Governments


Governments

6. Business actors

11.3. Prepare technical

guidelines for

buying and selling of

smallholders’ fresh

fruit bunches (FFB)

Availability of technical

guidelines for buying and selling

of smallholders’ FFB

2020



2. Ministry of Home

Affairs

3. Provincial

Governments


Governments

5. Business actors

11.4. Conduct monitoring

and evaluation of

Availability of periodic

recommendation reports as a


1. Ministry of

Cooperatives &

36

No



Supporting Agency


business

partnerships

between companies

and smallholders’

institutions

result of monitoring and

evaluation of business

partnerships between

companies and smallholder

institutions in 26 palm oil

producing provinces

Small and Medium

Enterprises


Development of

Disadvantaged

Areas and

Transmigration

3. Provincial

Governments


Governments

5. Business actors

B12: Increasing agricultural extension services in central palm oil producing regions Context: Extension agents are the primary benefactors in the transfer of knowledge and expertise to oil palm plantation smallholders. The current polyvalent (multi-disciplinary) extension system still prioritizes the development of food crops. The current system provides insufficient guidance to the plantation sub-sector, prohibiting the industry from reaching its potential. Challenges in providing guidance include: the limited number of extension agents; inadequate capacity and competence; and inadequate remuneration and facilities. Recruiting Supporting Contract Workers (TKP) and Assisting Field Workers for Supporting Contract Workers (PLP-TKP) is an example of the Ministry of Agriculture’s efforts to meet the requirement for extension agents. However, the requirement for extension agents are still unmet. Objective: Increasing the number and improving the competency of palm oil extension agents/facilitators

37

No



Supporting Agency


12 Increasing agricultural guidance in central palm oil producing regions

12.1. Regularly updating the number of agricultural extension workers in the plantation sector including civil servant (ASN), civil society organisations, and companies

The availability of up-to-date data of the number of agricultural extension workers in the plantation sector including civil servant (ASN), civil society organisations, and companies in 26 palm oil producing provinces



2. District/Municipal Governments

3. Business actors

12.2. Increasing the numbe of training to improve the competence of agricultural extension workers in the plantation sector including ASN, civil society organisations, and companies

An increased number of training for agricultural extension workers in the plantation sector in 26 palm oil producing provinces in a periodic basis


1. Ministry of Home Affairs



4. Business actors

12.3. Improving the role of community extension workers and companies in providing extension services for oil palm smallholders

The implementation of extension services for oil palm smallholders by community extension workers and companies in 26 palm oil producing provinces in a periodic basis

2019 - 2024




3. Business actors

38

No



Supporting Agency


12.4. Strengthening the role of the Agricultural Extension Service Agency (BPP) as one of the centres for oil palm plantation extension services

The availability of a BPP with the capacity to support the oil palm extension services in 26 palm oil producing provinces




3. Business actors

COMPONENT C: ENVIRONMENTAL MANAGEMENT AND MONITORING

C13: Increasing efforts in conservation of biodiversity and plantation landscapes Context: The Indonesian economy has greatly benefitted from the palm oil industry, encouraging the Indonesian government to set targets for land productivity and production in each region. These targets often disfavour environmental capacity, resulting in damage to the ecosystem. However, there is a growing understanding of the importance of biological resources and environmental services in Indonesia, due to the importance of sustainable national development. To protect national interests now and for future generations, it is important to support the government's efforts to protect critical ecological areas, especially those in cultivation areas. This program focuses on determining how to align oil palm plantation development and management with government policies on the management of environmental services in oil palm plantations and biodiversity protection. Objective: To apply the approaches for Essential Ecosystems (KEE), High Conservation Value Areas (ABKT) and other local protected areas to plantation development areas

39

No Program Activity Output Time of


Supporting Agency

C. ENVIRONMENTAL MANAGEMENT AND MONITORING

13 Increasing efforts in conservation of biodiversity and plantation landscapes

13.1. Develop a regulation to protect Essential Ecosystems Area (KEE) and technical guidelines for monitoring of High Conservation Value Areas (ABKT)

The issuance of KEE protection regulation and technical guidelines for ABKT

2019 - 2020

Ministry of Environment and Forestry



3. Peat Restoration Agency



6. Business actors

13.2. Monitoring and evaluation of biodiversity management in plantation areas in a periodic basis

13.2.1. The availability of periodic report of monitoring and evaluation on biodiversity management in 26 palm oil producing provinces

13.2.2. The availability of data on the number of companies that manage biodiversity within plantation business areas

2019 - 2024






40



Supporting Agency


13.3. Conduct socialization of KEE and protected areas to provincial and district/ municipal governments

socialization of KEE and protected areas to provincial and district/ municipal governments in 26 palm oil producing provinces

2019 - 2024 Ministry of Environment and Forestry





5. Business actors

13.4. Increasing the number of collaborative forums responsible for managing KEE and biodiversity at the provincial and district/municipal levels

An increased number of collaborative forums with an effective role in managing KEE and biodiversity at the palm oil producing provinces and districts/municipals from 48 to become 83 forums

2019 - 2024







6. Business actors

41



Supporting Agency


13.5. Increasing the participation of oil palm plantation business actors in the rehabilitation of watersheds (DAS)

Participation of oil palm

plantation business actors in

DAS rehabilitation.

2019 - 2023






5. Business actors

13.6. Prepare guidelines for planning and implementation of peat management and restoration by companies and smallholders

13.6.1. Guidelines for planning and implementation of peat management and restoration by companies and smallholders in palm oil producing provinces and districts/municipals

13.6.2. Plan and

implementation of peat management and restoration by companies and smallholders in palm oil producing provinces and districts/municipals

2019 - 2020







6. Business actors

42

C14: Prevention of plantation and land fires

Context: Plantation and land fires is an issue Indonesia faces almost every year, particularly during the dry season. Fires can occur due to natural or human factors or a combination of both. Oil palm plantations are often the target of criticism as a cause of plantation and land fires, though there are no studies to prove this. The Indonesian government has made a commitment to prevent plantation and land fires, though Indonesia has seen a minimal reduction in these fires. Objective: To prevent and manage plantation and land fires



Supporting Agency


14 Prevention of plantation and land fires

14.1. Provide infrastructural support for smallholders in implementing land clearing without burning (PLTB)

The continuous availability of infrastructure and facilities for smallholders applying PLTB in palm oil producing provinces and districts/municipals that are prone to fires

2020 - 2024


1. Ministry of Environment and Forestry and Ministry of Home Affairs

2. National Disaster Management Agency



5. District/Municipal governments

6. Business actors

14.2. Monitor and evaluate the implementation of each plantation

The availability of monitoring and evaluation reports regarding the implementation

2019 - 2024


1. Ministry of Environment and Forestry

43



Supporting Agency


company’s obligations in controlling plantation and land fires

of each plantation company’s obligations in controlling plantation and land fires





6. Business actors

14.3. Increase cooperation among Fire Response Farmer Groups (KTPA) located near oil palm plantations to prevent plantation and land fires

14.3.1. The formation of KTPA around oil palm plantations

14.3.2. Cooperation between

oil palm plantation comapnies and KTPA located near oil palm plantations to prevent plantation and land fires

2019 - 2024

2019 - 2024



2. Ministry of Villages, Development of Disadvantaged Areas and Transmigration





7. Business actors

44



Supporting Agency


14.4. Follow up on the results of hotspot monitoring for plantation and land fires

Regular follow-ups on the results of hotspot monitoring for plantation and land fires

2019 - 2024




3. Meteorology, Climatology and Geophysics Agency

4. National Institute of Aeronautics and Space



7. Business actors

14.5. Develop regulations regarding KTPA

The issuance of regulations

pertaining to KTPA

2019 - 2024



2. Ministry of Villages, Development of Disadvantaged Areas and Transmigration


45



Supporting Agency




6. Business actors

C15: Reducing greenhouse gas (GHG) emissions across plantation and land sectors Context: The Government of Indonesia is committed to reducing GHG emissions and preventing the adverse effects of climate change. At the end of 2015, the government stated that the agricultural sector’s target was 17,480 Mtons of CO2e or double the national GHG emissions reduction target for this sector (RAN-RAD GRK 2010-2015 Report)2. However, GHG emissions have only reduced by 17%. Reductions are still short of the 29% target set by the government for 2030. It is therefore critical that the agricultural sector, especially oil palm plantations, play a role in reducing GHG emissions. Land clearing is the cause of most GHG emissions in Indonesia; one possible solution to this is to consider the role of critical land in planning plantation development. Furthermore, forest, land and plantation fires are also prominent issues that can inhibit reaching the targeted national GHG emissions reduction. Multistakeholder cooperation therefore becomes very important in achieving better land governance and more efficient land use to respond to environmental challenges. Objective: Support the government in reducing GHG emissions



Supporting Agency


15 Reducing cross-sectoral greenhouse gas (GHG)

15.1. Improve the standard guidelines for calculation and

Improved standard guidelines for calculation and inventory of carbon

2021 - 2024



2 The Agriculture Sector contributed 0.32% of the 29% BAU baseline data (1990 - 2012) or 9 MTons CO2e (Nationally Determined Contribution Republic of Indonesia, KLHK 2017).

46



Supporting Agency


emissions in plantation and land

inventory of carbon stock and GHG emissions in oil palm plantations

sinks and GHG emissions in oil palm plantations which are nationally agreed upon and internationally recognized.




5. Business actors

15.2. Prepare technical guidelines on the mitigation of GHG emissions in the oil palm plantation sub-sector

The availability of

technical guidelines on the

mitigation of GHG

emissions in the oil palm

plantation sub-sector

2021 - 2024






5. Business actors

15.3. Periodic inventory of carbon stock and GHG emissions in plantations

The availability of periodic inventory reports on GHG emission, baselines, and emission reduction targets for plantations

2021 - 2024






5. Business actors

47



Supporting Agency


15.4. Develop a national database on carbon stock and oil palm GHG emissions values

The establishment of a database on carbon stock and GHG emissions values produced by the oil palm plantation sector

2021 - 2024






5. Business actors

15.5. Develop an integrated action plan on the mitigation of GHG emissions in oil palm plantations

The availability of an integrated action plan on the mitigation of GHG emissions in oil palm plantations






5. Business actors

15.6. Mitigating, monitoring and verifying GHG emission reduction in oil palm plantations

Reports regarding potential GHG emission reduction in oil palm plantations





4. District/MunicipalsGovernments

5. Business actors

48

C16: Implementation of measurement, reporting, and verification (MRV) on potential GHG emission reductions in oil palm plantations Context: The MRV concept first appeared during the COP 13 Conference on Climate Change in the Bali Action Plan: a national commitment to mitigate measurable, reportable and verifiable GHG emissions. In 2009, Indonesia voluntarily committed to reduce GHG emissions by 29% from national funding sources and by 41% if their efforts are supported with international funding by 2030. This concept will be applied in reducing GHG emissions in oil palm

plantations. Objective: Reduction of GHG emissions from oil palm plantations that can be measured, reported and verified.



Supporting Agency


16 Implementation of measurement, reporting, and verification (MRV) on potential GHG emission reductions in oil palm plantations

16.1. Carry out MRV for potential GHG emission reduction in oil palm plantations

16.1.1. The availability of MRV report on potential GHG emission reduction in oil palm plantations across 26 provinces

16.1.2. Verified emission reductions in oil palm plantations

2021 – 2024

2021 - 2024






5. Business actors

16.2. Capacity building on human resources in reducing GHG emissions

The availability of human resources with the competence to measure GHG emissions





49



Supporting Agency



5. Business actors

C17: Increasing the use of critical land as an effort to reduce greenhouse gas (GHG) emissions in oil palm plantations Context: Development generally requires land resources. Indonesia has experienced an acceleration of forest destruction since the early 2000s. This created extensive areas of critical land within both forest areas and non-forest areas. This degenerated land needs to be utilized, enabling it to absorb carbon and other GHGs. Palm oil can be grown on degraded land, making forest clearing no longer required. Objective: Increase the use of critical land as an effort to reduce GHG emissions in oil palm plantations.



Supporting Agency

C. ENVIRONMENT MANAGEMENT AND MONITORING

17 Increasing the use of critical land as an effort to reduce GHG emissions in oil palm plantations

17.1. Identify critical land and its ownership status within and/or outside forest areas

The availability of data on critical land and ownership status within and/or outside forest areas which are updated regularly

2020 - 2024 Ministry of Agrarian and Spatial Planning / National Land Agency






6. Business actors

50



Supporting Agency


17.2. Develop regulations and technical guidelines regarding improving the effectiveness of critical land management

The establishment of regulations and technical guidelines to facilitate the improvement of critical land management

2020 Ministry of Agrarian and Spatial Planning/ National Land Agency






6. Business actors

17.3. Establishing basic data for land and critical land data in oil palm plantations

The availability of basic land and critical land data in the oil palm plantation sector

2020 - 2022 Ministry of Agrarian and Spatial Planning/ National Land Agency







7. Business actors

17.4. Conduct studies on social, economic, ecological, and critical

The availability of studies on social, economic, ecological, and critical

2020 - 2022 Ministry of Agrarian and Spatial Planning/


51



Supporting Agency


land suitability for utilisation plan

land suitability for utilisation plan




4. Provincial Governments District/Municipal Governments

5. Business actors

C18: Utilization of oil palm waste to increase economic value chain Context: The government of Indonesia is focused on efforts to increase plantation intensification and the down streaming of palm oil products. Consequently, there is a larger amount of waste that can impede on environmental sanitation. The waste-free plantation activities policy is necessary in avoiding the environmentally harmful outcomes of increased levels of palm oil waste. In addition to increasing economic value, waste utilization also plays an important role in reducing GHG emissions and maintaining clean water sources in plantation areas. However, in implementing waste utilization still poses numerous challenges, such as: a selling price that is not yet economical, limited market access and inadequate processing and distribution infrastructure. Objective: Increase the utilization of oil palm waste to improve palm oil’s economic chain value.



Supporting Agency


18 Utilization of oil palm waste to increase economic value chain

18.1. Carry out feasibility studies on the utilization of solid and

The availability of study results and various knowledge about the procedures to utilise oil

2019 - 2022


1. Coordinating

Ministry for

Economic Affairs

52



Supporting Agency


liquid oil palm waste for various purposes

palm waste for various purposes

2. Ministry of Energy and Mineral Resources


4. Oil palm plantation Fund Management Agency

18.2. Develop business-to-business strategies to use oil palm stems as a raw material for various industries dan oil palm sap as a raw material for brown sugar

Business-to-business strategies to use oil palm stems as a raw material for various industries dan oil palm sap as a raw material for brown sugar

2019 - 2022





4. Business actors

18.3. Increase the integration of oil palm plantations and livestock

An increased number of companies that integrate oil palm plantations and livestock




53



Supporting Agency



4. Business actors

C19: Increasing the use of palm oil products as renewable energy in the context of energy security Context: Oil palm plantation companies have used POME as a renewable energy source, mostly to supply electricity to the oil palm plantation’s vicinity and villages located around the plantations. The use of POME needs to be evaluated to identify challenges in the distribution of its renewable energy. Objective: Increasing the use of palm oil products as a renewable energy source.

No. Program Activity Output Time of


Supporting Agency


19 Increasing the use of palm oil products as a renewable energy source in the context of energy security

19.1. Monitor and evaluate the use of Palm Oil Mill Effluent (POME) as a renewable energy

19.1.1. The availability of reports on the results of monitoring and evaluation on the use of POME as an alternative energy

19.1.2. An increasing

number of

2020 - 2024 Ministry of Energy and Mineral Resources



3. Ministry of State-Owned Enterprises


54



Supporting Agency


cooperation between palm oil companies and the State Electricity Company (PLN) in the use of POME as a renewable energy


6. Business actors

COMPONENT D: PLANTATION GOVERNANCE AND DISPUTE RESOLUTION

D20: Accelerating the realization of corporate obligations to facilitate the development of sustainable oil palm plantations for communities Context: Palm oil development has supported and economically empowered many rural and regional Indonesian communities. Current laws and regulations require plantation companies to facilitate the development of community plantations of at least 20% of the Plantation Business Permit (IUP). To achieve consistent development in community plantations, intensive supervision and commitment is needed from the licensor and the private sector. Objective: Accelerate community oil palm plantation development



Supporting Agency

D. GOVERNANCE AND MANAGEMENT OF DISPUTES

20 Accelerating the realization of corporate

20.1. Conduct review against regulations regarding

Recommendations to improve regulations that



55



Supporting Agency


obligations to facilitate the development of sustainable oil palm plantations for communities

facilitation of community oil palm plantations development

facilitate the development of community oil palm plantations

Spatial Planning/National Land Agency





6. Business actors

20.2. Conduct public consultations on the draft regulation regarding facilitation of community oil palm plantations development by companies

Feedback from stakeholders on the draft regulation regarding facilitation of community oil palm plantations development by companies







6. Business actors

56

D21: Handling oil palm plantation land disputes in areas of other use Context: Land disputes have become a common issue in land-based industries in Indonesia, oil palm plantations included, and are the main cause of conflict. Other causes include issues related to plasma cooperation, employment, environmental impacts and the implementation of corporate social responsibility for the surrounding communities. To illustrate, in 2016, there were 439 cases of palm oil land use conflicts. These conflicts need to be resolved quickly, professionally, fairly and without violence. The Ministry of Agrarian and Spatial Planning/the National Land Agency has issued the Regulation of the Head of BPN No.3 / 2011 regarding the management, study and handling of land cases. This regulation can be used to accelerate the resolution of land conflicts effectively and efficiently. Objective: Handling land disputes effectively and efficiently by using existing facilities and infrastructure



Supporting Agency


21 Handling of oil palm plantation land disputes in areas of other use

21.1. Form a mediation team to handle land disputes and conduct mediation training regarding the handling of oil palm land disputes in areas of other use

21.1.1. The formation of a mediation team to handle oil palm land disputes in areas of other use

21.1.2. The availability of a mediation team to handle land disputes

2020 – 2024

2020 – 2024

Ministry of Agrarian and Spatial Planning/National Land Agency






21.2 Handling land disputes through mediation

Results from the handling of oil palm plantation land disputes

2020 – 2024 Ministry of Agrarian and Spatial Planning/National Land Agency



57



Supporting Agency





21.3 Evaluate the progress in

the handling of land

disputes

21.3.1 Results of evaluation and recommendations for land disputes handling

21.3.2 A reduced amount of land disputes in oil palm plantation areas

2020 – 2024

2020 – 2024

Ministry of Agrarian and Spatial Planning/National Land Agency






D22: Settlement on the status of oil palm plantation indicated in forest areas Context: One of the challenges facing Indonesia’s palm oil industry is oil palm plantations located in forest areas. The legality aspect is an important factor in the governance of Indonesian oil palm plantations, because it will have an impact on business certainty, legality, and the legitimacy of oil palm plantation products. Data from Ditjenbun (2017) shows that of the total oil palm plantation area covering 14.03 million hectares, around 2.5 million hectares are in forest areas. Objective: Settlement of the land status of oil palm plantations located in forest areas

58



Supporting Agency


22 Settlement on the status of oil palm plantation indicated in forest areas

22.1. Settling the status of oil palm plantations indicated in forest areas

The settlement of oil palm plantations status indicated in forest areas






22.2. Settling the already existing community oil palm plantation within plantation forest concession.

The settlement of those already existing community oil palm plantation within plantation forest concession.






22.3. Collecting data on communities’ oil palm plantations indicated in forest areas

22.3.1. The availability of data on communities’ oil palm plantations indicated in forest areas

22.3.2. The availability indicative mapping and issues related to communities’ oil

2019 – 2021

2019 – 2021




3. Provincial Government

59



Supporting Agency


palm plantations indicated in forest areas

22.3.3. The availability of database and verification results on communities’ oil palm plantations indicated in forest areas

2019 – 2021


22.4. Facilitate the fulfilment of requirements for social forestry permits, plantation forest utilization permits or changes to the designation of forest areas which already existed prior to forest area appointment.

The issuance of social forestry permits, plantation forest utilization permits or changes to the designation of forest areas which already existed prior to forest area appointment.






D23: Legalisation of land from the settlement of plantation status indicated in forest areas and the settlement of land disputes Context: Assets that are obtained from the settlement of plantation statuses in forest areas need to be legalized immediately.

60

Objective: Provide legal status to assets obtained from the settlement plantation statuses in forest areas and from the settlement of land disputes.



Supporting Agency


23 Legalisation of land from the settlement of plantation status indicated in forest areas and the settlement of land disputes

23.1. Conduct land legalisation in the context of agrarian reform, as a follow-up to the settlement of plantations status indicated in forest areas

The issuance of land certificates in the context of agrarian reform, as a follow-up to the settlement of plantations status indicated in forest areas

2020 – 2024

Ministry of Agrarian and Spatial Planning/ National Land Agency






23.2. Conduct land legalisation in the context of agrarian reform, as a follow-up to disputes resolution over oil palm plantations

The issuance of land certificates in the context of agrarian reform as a follow-up to disputes resolution over oil palm plantations

2020 – 2024

Ministry of Agrarian and Spatial Planning/ National Land Agency





61

D24: Settlement on the land status of plantation businesses land indicated in peat ecosystems Context: Peatland ecosystems are unique because they are rich in carbon and biodiversity but are also extremely fragile. Damage to these ecosystems affects the hydrological system on a landscape scale. Peat also becomes flammable when dry. Therefore, oil palm plantation activities carried out within peatland ecosystems need to be evaluated; and land and business statuses need to be settled. Objective: Settlement of land and plantation business statuses located within peatland ecosystems



Supporting Agency


24 Settlement on the land status of plantation businesses land indicated in peat ecosystems

24.1. Managing plantation business land with a peat ecosystem management system (hydrological system).

The implementation of "clear and clean" plantation businesses with a peat ecosystem management system (hydrological system).

2019 – 2023 Ministry of Environment and Forestry





24.2. Collecting data on communities’ oil palm plantations indicated in peat ecosystems

24.2.1. The availability of communities’ oil palm plantation land data indicated in peat ecosystems

24.2.2. The availability of indicative maps on communities’ oil palm plantations indicated in peat ecosystems

2019 – 2023

2019 – 2023






62



Supporting Agency


24.2.3. Recommendations for the settlement of the identified communities’ oil palm plantations indicated in peat ecosystems

2019 – 2023

D25: Conducting a review on labour regulations ad dissemination related to monitoring on the implementation of occupational safety and health systems; (OSH) and Workers' Social Security in oil palm plantation businesses Context: Labour regulations apply to medium and large-scale oil palm plantations. They need to be reviewed so they can become applicable to small-scale plantations that employ workers, ensuring that these workers are also protected. Objective: A review of existing labour regulations related to monitoring the implementation of occupational safety and health (K3) systems and Workers' Social Security, and their dissemination in oil palm plantation businesses.



Supporting Agency


25 Conducting a review on labour regulations ad dissemination related to monitoring on the implementation of occupational safety and

25.1. Reviewing labour regulations related to labour issues in the oil palm plantation sector

Recommendations for the settlement of labour issues in the oil palm plantation sector

2020 - 2021 Ministry of Manpower




63



Supporting Agency


health systems; (OSH) and Workers' Social Security in oil palm plantation businesses

25.2. Improving the quality of labour norms cadres and OSH experts for oil palm plantations

Education and training to labour norm cadres and OSH expert in oil palm plantations in 26 palm oil producing provinces




3. Business actors

25.3. Increasing the regulation socialization and dissemination to oil palm company and smallholders which consists of explanation and handling of issues, OSH, and workers’ social security

Regulation socialization and dissemination to oil palm company and smallholders which consists of explanation and handling of issues, OSH, and workers’ social security in 26 palm oil producing provinces in a periodic basis.



2. Workers Social Security Agency (BPJS Ketenagkerjaan)



5. Business actors

25.4. Monitoring the regulation implementation covering OSH and workers’ social security in oil palm plantation businesses

Regular monitoring the regulation implementation covering OSH and workers’ social security in oil palm plantation businesses

2019 - 2024

Ministry of Manpower


2. Workers Social Security Agency (BPJS Ketenagkerjaan)



5. Business actors

64

COMPONENT E: SUPPORTING THE ACCELERATION OF INDONESIAN SUSTAINABLE PALM OIL (ISPO) CERTIFICATION AND IMPROVEMENT OF PALM OIL PRODUCT MARKET ACCESS

E26: Implementation of ISPO socialization for national stakeholders Context: ISPO was implemented in 2011 but has yet to be optimally implemented in all of Indonesia’s plantations. As of August 27th, 2019, approximately 5,185,544 hectares of plantations is ISPO certified. It is mostly managed by 556 companies, 6 independent cooperatives and 4 plasma village cooperative units (KUD). This area is equivalent to a CPO production volume of approximately 12,260,641 tons. The results of meetings held at the national and regional levels conclude that national stakeholders' knowledge on ISPO is still lacking and sometimes non-existent. The above data also shows that ISPO certification is carried out by only a small proportion of palm oil business operators, compared to the total oil palm plantation area and the national CPO production volume. Objective: Ensure broad recognition and acceptance of ISPO among national stakeholders and the international market

NO Program Activity Output Time of

Implementation Agency in

Charge Supporting Agency

E. SUPPORTING THE ACCELERATION OF INDONESIAN SUSTAINABLE PALM OIL (ISPO) CERTIFICATION AND IMPROVEMENT OF PALM OIL PRODUCT MARKET ACCESS

26 Implementation of ISPO socialization for national stakeholders

26.1. Developing a communication strategy road map at the national, provincial and district/municipal level

The establishment of a communication strategy road map at the national, provincial and district/municipal level


1. Ministry of Trade 2. National

Standardization Agency


4. District/MunicipalGovernments

5. Business actors

26.2. Increasing the frequency of

26.2.1. An increased number of stakeholders who

2019 – 2024


1. Provincial Govenrments

65





socialization on the ISPO certification system

understand the importance of ISPO certification

26.2.2. An increased number of companies and smallholders obtaining ISPO certification

2019 – 2024

2. District/Municipa Governments

3. Business actors

E27: Accelerating the implementation of ISPO certification for companies and smallholders Context: As of March 2019, there are 493 ISPO certified plantation units. In accelerating sustainable palm oil development, it is vital to escalate the rate of ISPO certification for companies and smallholders. The public-private partnership model between the Indonesian government and companies, or other parties, is an example of the strategies to accelerate ISPO certification for smallholders. Objective: Accelerate the implementation of ISPO certification for companies and smallholders


Implementation

Agency in Charge

Supporting Agency


27 Accelerating the implementation of ISPO certification for companies and smallholders

27.1. Providing assistance/ extension service to smallholders in fulfilling the ISPO certification requirements

An increased number of smallholders who have met the requirements to obtain ISPO certification




3. Business actors

66


Implementation

Agency in Charge

Supporting Agency


27.2. Increasing the number and capacity of Plantation Business Assessors (PUP) and local government funds for the plantation appraisal process as a prerequisite for becoming ISPO certified

27.2.1. An increased number and capacity of Plantation Business Assessors (PUP) and local funds for the implementation of plantation business appraisals

27.2.2. An increased number of plantations that have received plantation class appraisals




3. Business actors

27.3. Developing partnership guidelines between companies and smallholders to obtain ISPO certification

The establishment of partnership guidelines between companies and smallholders to obtain ISPO certification




27.4. Conducting ISPO training for officers in provinces and districts/municipals

An increased number of ISPO certified extension officers





4. Business actors

67


Implementation

Agency in Charge

Supporting Agency


27.5. Establishing working groups as a platform for ISPO information and consultation

The establishment of working groups as a platform for ISPO information and consultation




3. National Standardization Agency


E28: Carrying out diplomacy, promotion and advocacy towards the acceptance of ISPO system by the international market Context: ISPO was originally designed to improve oil palm plantation management with the aim that all oil palm plantation businesses comply with the regulations set by the government of Indonesia. ISPO then developed into a policy that could be used as a sustainability instrument, hopefully accepted by the international market. Well-planned communication, advocacy, diplomacy and promotion strategies are required to ensure acceptance by the international market. Objective: Carrying out diplomacy, promotion and advocacy towards the acceptance of the ISPO system by the international market

68





28 Carrying out diplomacy, promotion and advocacy towards the acceptance of the ISPO system by the international market

28.1. Develop diplomatic strategies towards ISPO acceptance at the international level

Establishment of diplomatic strategies towards ISPO acceptance at the international level

2020 - 2021

Ministry of Foreign Affairs

1. Ministry of Trade 2. Ministry of

Agriculture 3. Ministry of



5. Oil Palm Plantation Fund Management Agency

6. Business actors

28.2. Coordinating diplomacy towards the acceptance of ISPO at the international level

The coordination of diplomacy towards the acceptance of ISPO at the international level

2020 - 2024 Ministry of Foreign Affairs


Agriculture 3. Ministry of




6. Business actors

28.3. Developing promotion and advocacy strategies towards the acceptance

The establishment of promotion and advocacy strategies towards the

2020 - 2024

Ministry of Trade

1. Ministry of Foreign Affairs

69





of ISPO at the international level

acceptance of ISPO at the international level





6. Business actors

28.4. Organizing promotion and advocacy towards acceptance of ISPO at the international level

Promotion and advocacy for the acceptance of ISPO at the international level

2020 - 2024 Ministry of Trade

1. Ministry of Foreign Affairs




5. Oil Palm Plantation Fund Management Board

6. Business actors

28.5. Cooperating with consumer countries

28.5.1. Cooperation with consumer countries

2024

Ministry of Foreign Affairs


Agriculture

70





through various programs

through various programs

28.5.2. Achievement of understanding with importer countries’ towards ISPO acceptance

2024



5. Business actors

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