All stakeholders play a vital role in boosting the sustainability of palm oil in Indonesia.• Smallholdersproduce40%ofthecountry’spalmoil.Raisingtheirproductivityandimprovingthetraceabilityandlegalityoftheirpalmoilisvitaltoincreasingtheindustry’ssustainability.

• The government is best placed to ensure long term and systemic changes beyond onesinglesupplychainandtofosternationaldeforestation-freecommodityproduction.

• Theprivate sectormakeskeycontributions,particularly to smallholderproductivity.Withadvanced technology allowing for production increases from intensification, the privatesector is in thebestposition tomakecapital investments to improvesupplychainsandsubsequently farmer livelihoods.

Bypursuingprivatesectorandgovernmentcollaborationwithothernon-governmentactors,such as smallholders, INGOs, NGOs, certification bodies and industry associations, andbringing together existing efforts and projects under one coordination platform, the SPOInitiativeaimstocatalysefundamentalchangeinIndonesia’spalmoilsector.

The SPO Initiative Approach

• Today, the expansion of agricultural land for palm oil plantations poses a significant threat to the world’s remaining tropical forests and peatlands, jeapordizing biodiversity and livelihoods.

• Indonesia, the world’s largest producer of palm oil, has been under the glare of media spotlight regarding the impact of palm oil plantations on deforestation, the land rights of indigenous peoples and climate change.

• Palm oil has a strategic value in supporting Indonesia’s national development. Palm oil plantations are the prime movers of agribusiness development, create much-needed jobs and income for farmers, and generate national revenue.

• By 2020 Indonesia aims to almost double its palm oil production to meet rising global demand.

Fast facts: PalmOil in Indonesia

GREEN COMMODITIES PROGRAMME / Indonesia

THE SUSTAINABLE PALM OIL INITIATIVE

Scaling up sustainable palm oil production in Indonesia

Established in 2012, the SustainablePalmOil(SPO)InitiativeisanalliancebetweentheGovernmentofIndonesia(GoI),theUnitedNationsDevelopmentProgramme(UNDP),theprivatesectorand other non-government partnersthat aims to address key challengesin Indonesia’s palm oil sector suchas deforestation and improving the livelihoods of smallholder farmers.

Government:• MinistryofAgriculture• MinistryofEnvironmentandForestry• MinistryofCooperativesandSMEs• MinistryofNationalDevelopmentPlanning• IndonesianSustainablePalmOilstandard

Non-Government:• IKEA• Mondelēz• Smallholderassociations• UN-REDDProgramme• Palmoilproducers• Palmoilbuyers• Developmentorganizations• RoundtableonSustainablePalmOilstandard

Key PartnersWhat isthe SustainablePalm Oil Initiative?

GREEN COMMODITIES PROGRAMME / Indonesia

www.greencommodities.orgLearn more For more information, please contact: TomoyukiUno,GlobalCommoditiesAdvisor,GreenCommoditiesProgramme,UNDPIndonesia.tomoyuki.uno@undp.org

Why UNDP?

Asaneutralorganizationwithalong-termpresenceinIndonesia,UNDPisatrustedgovernmentpartnerwithauniquemandatetosupportdialogueandcoordination.UNDP–throughitsGreenCommoditiesProgramme-canfacilitatediscussionbetweenthegovernment,theprivatesectorandcivilsocietyonsensitiveissuesrelatedtothepalmoilsector.

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1 / National and international standards alignment:The SPO Initiative aims to supportthe Indonesian Sustainable Palm Oil(ISPO) standard to become globallyrecognisedand topromotesynergiesbetweenISPOandtheRoundtableonSustainablePalmOil.

2 / A dynamic and operational Indonesian Palm Oil Platform:Transitioning the Indonesian palmoil industry towards sustainablepractices requires fundamentalmindset changes in policy andcooperation between stakeholders.The SPO Initiative will ensure that

the platform, led by the Ministry ofAgriculture (MoA), is an operational,dynamicandpracticalforum.

3 / Policy reform to reduce deforestation:The SPO Initiative works with theMinistry of Environment and ForestrytoprotectHighConservationValueandHighCarbonStock land, tostrengthenenforcementofcurrentlaws,tofacilitatepolicychange,toacceleratelandswapsand to enable companies to protectforested landwithin their concessions.With the MoA, the SPO Initiativesupports independent smallholders to produce certified sustainable palm oilbystrengtheningtheir legalstatus (e.g.providing themwith land titles)andbyimproving agricultural practices, whichin turn diminish pressure on forests from small-scaleencroachment.

4 / Empower smallholders:The SPO Initiative supportsindependent smallholders by strengthening government (nationaland local) and public-privatepartnership extension systems. Theinitiativeisalsosupportingkeylocaland state interventions on issues such as land tenure, environmentalmanagement, credit access andinfrastructure improvement. Thegoal is to integrate smallholders into international supply chains in anequitable and sustainable manner.

SPO Initiative Goals