The Future of Sustainable Palm Oil is Changing are e Ready for What Comes Next?

With new global expectations and increasingly stringent sustainability requirements on the horizon, Indonesia’s palm oil industry is entering a pivotal phase of transformation.

On 4–5 May 2026, the Roundtable on Sustainable Palm Oil (RSPO), through its Indonesia Secretariat, convened a Standard Harmonisation Session in Jakarta. The event brought together a diverse range of stakeholders - including plantation companies, independent smallholders, auditors, certification bodies, consultants, and NGOs with one shared objective: preparing for the implementation of the updated RSPO Principles & Criteria (P&C) 2024 and Independent Smallholder (ISH) Standard 2024, which will officially take effect on 1 June 2026.

What Are the Updated RSPO Principles & Criteria 2024 ?

In simple terms, both are global sustainability standards developed by the RSPO to ensure palm oil is produced responsibly - environmentally, socially, and economically.

1. RSPO Principles & Criteria (P&C) 2024

The RSPO Principles & Criteria (P&C) 2024 serves as the primary certification standard for companies, including plantations, mills, and corporate groups. It establishes mandatory requirements for sustainable palm oil production across global supply chains.

🔑 Key Areas Covered

Environmental Protection (Planet)

• No deforestation

• No peatland conversion

• Biodiversity protection

Social Responsibility (People)

• Workers’ rights

• Community rights

• FPIC (Free, Prior and Informed Consent)

• Human Rights Due Diligence (HRDD)

Business Ethics & Governance (Prosperity)

• Transparency

• Traceability

• Legal compliance

  
  

The overarching goal is to ensure palm oil production balances People, Planet, and Prosperity in a measurable, transparent, and auditable way.

2. RSPO Independent Smallholder (ISH) Standard 2024

The RSPO Independent Smallholder (ISH) Standard 2024 is specifically designed for independent smallholder farmers, who typically manage smaller land areas and operate independently.

The standard provides a more simplified and accessible pathway to certification while maintaining the same sustainability ambitions.

🔑 Key Areas Covered

• Good Agricultural Practices (GAP)

• Environmental protection adapted to small-scale operations

• Social safeguards, including land rights, FPIC, and fair treatment

• Group certification systems (e.g. cooperatives and Internal Control Systems/ICS)

Importantly, the standard recognises that independent smallholders face different capacities and operational challenges. As such, implementation follows a more practical and step-by-step approach.

What Were the Key RSPO Updates Highlighted?

🌱 Stronger Environmental Commitments

A major focus during the first day of the session was the Planet Pillar, where the revised standards introduced stronger environmental safeguards.

Key updates include:

• The HCV - HCS approach is now more clearly defined and fully integrated, covering both above- and below-ground carbon stock.

• Sustainability requirements now explicitly extend to independent smallholders, reinforcing inclusivity across the supply chain.

• New indicators on water use and abstraction have been introduced to address future resource risks.

• The strict prohibition of deforestation and peatland conversion remains unchanged.

• Environmental compliance must now be reported through PRISMA, RSPO’s digital traceability system, enhancing transparency across global supply chains.

  
  

👥 Raising the Bar on Human Rights and Labour Standards

Equally significant are the updates introduced under the People Pillar, reflecting a stronger emphasis on social responsibility and worker protection.

Key developments include:

• Human Rights Due Diligence (HRDD) is now mandatory, aligned with international frameworks such as the UN Guiding Principles and OECD guidance.

• FPIC (Free, Prior and Informed Consent) remains a cornerstone requirement, supported by stronger implementation measures and annual reviews.

• Core operational roles, including harvesting, must now be undertaken by permanent employees in accordance with national labour regulations.

• Enhanced protection for women workers, including safeguards for pregnant employees and fair treatment during role reassignment.

• Clearer requirements surrounding recruitment practices and working hours, including limitations on consecutive working days and employer responsibility for third-party recruitment fees.

  
  

🤝 A Unified Step Towards Sustainable Transformation

This harmonisation session reflects Indonesia’s ongoing commitment to aligning with evolving global sustainability expectations. With the planned introduction of INANI (Interpretasi Nasional Indonesia) by the end of May 2026, RSPO members across Indonesia will have access to a nationally contextualised framework to support implementation and compliance.

💬 Why This Matters

For businesses, smallholders, and stakeholders across the palm oil value chain, these updates represent more than regulatory compliance. They signal a broader shift towards a more accountable, transparent, and future-ready palm oil industry - one that is increasingly aligned with global sustainability expectations while strengthening long-term resilience and market credibility.

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This article refers to official information and event details published by the Roundtable on Sustainable Palm Oil (RSPO) through its News & Events publications and related communications.