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Background: Standardising Sustainability for the Downstream Industry As a follow-up to Presidential Regulation No. 16 of 2025 on the Indonesian Sustainable Palm Oil (ISPO) Certification System, the Ministry of Industry issued Minister of Industry Regulation No. 38 of 2025 to provide technical provisions for ISPO certification for the downstream palm oil industry. This regulation ensures that palm oil derivative products comply with national standards on legality, traceability, and sustainability across the downstream value chain. This regulation fills in the technical details not elaborated in the Presidential Regulation, including procedures for certification audits, documentation requirements, monitoring mechanisms, and the system of sanctions for industrial companies that fail to comply with ISPO requirements. Key Provisions on ISPO Certification for the Downstream Palm Oil Industry under Minister of Industry Regulation No. 38 of 2025 1. Certification Obligations for the Downstream Industry All companies engaged in the processing and manufacturing of palm oil derivatives  are required to hold a valid ISPO Certificate. This obligation applies to downstream activities producing refined palm oil products, oleochemicals, food and non-food palm-based products, including cooking oil, margarine, specialty fats, palm-based animal feed, and other derivative outputs. The scope of regulated business activities is determined based on the Indonesian Standard Industrial Classification (KBLI)  listed in the annexe to Minister of Industry Regulation No. 38 of 2025, which specifically covers downstream palm oil processing and manufacturing activities . 2. Certification Principles and Criteria The regulation applies the core ISPO principles to downstream industrial activities, covering: Legal compliance , including business licences, tax identification numbers (NPWP), and trademark legality. Supply chain traceability , through supplier verification, supply chain models, and traceability of raw material origins. Sustainable business improvement , relating to product quality, operational efficiency, and environmental management. Each principle is supported by indicators and parameters that are verified through audits. 3. ISPO Certification Process The certification process includes: verification of document completeness; Stage 1 and Stage 2 audits; assessment by the certification body; issuance of the certificate, including provisions on the use of the ISPO logo on products. Audit duration is determined based on the company’s production capacity. 4. Surveillance and Recertification Companies are required to undergo annual surveillance audits and recertification every five years. 5. Certificate Transfer Companies may transfer their certification from one ISPO Certification Body to another through an established transfer mechanism. 6. Administrative Sanctions Companies that fail to comply with the provisions may be subject to: written warnings; administrative fines; temporary suspension of business activities. 7. Guidance and Supervision The Ministry of Industry carries out guidance, facilitation, and supervision to ensure that certification implementation is conducted in accordance with regulatory requirements. Why This Regulation Matters 1. Alignment of Sustainability Standards For the first time, the downstream palm oil industry is explicitly subject to mandatory sustainability standards under the ISPO system. 2. Strengthening Product Traceability Supply chain requirements ensure that palm oil products can be traced back to the origin of their raw materials. 3. Supporting Global Market Competitiveness Global demand for sustainably produced palm oil continues to grow; ISPO certification serves as a tool to maintain credibility and market access. 4. More Systematic Oversight Annual surveillance and standardised audit requirements ensure consistent implementation of sustainability practices. Effective Date and Transition Period Minister of Industry Regulation No. 38 of 2025 sets out two key timelines: 1. Six-Month Transition Period Article 49 stipulates that the regulation enters into force six months after its promulgation. If promulgated on 3 November 2025, the regulation will become effective in May 2026. 2. Mandatory Certification from 19 March 2027 Article 48 stipulates that the downstream industry must hold an ISPO Certificate starting 19 March 2027. This provides companies with time to prepare traceability systems, documentation, and audit processes. Relationship with Presidential Regulation No. 16 of 2025 Minister of Industry Regulation No. 38 of 2025 serves as the technical implementing regulation of Presidential Regulation No. 16 of 2025, which constitutes the national legal framework for the ISPO system. The Presidential Regulation establishes: ISPO obligations for all actors across the palm oil value chain; ISPO principles and institutional structure; the audit and assessment framework; reporting and oversight obligations. Minister of Industry Regulation No. 38 of 2025 then details the technical implementation specifically for the downstream industry, ensuring that the mandate of the Presidential Regulation is operationalised through structured audit mechanisms, surveillance, and sanctions. Conclusion Minister of Industry Regulation No. 38 of 2025 is a key regulatory instrument in strengthening the governance of Indonesia’s downstream palm oil industry. With a six-month transition period and full certification obligations taking effect on 19 March 2027, industry players are given time to adjust internal systems, enhance traceability, and fulfil legal requirements. As a technical implementing regulation of Presidential Regulation No. 16 of 2025, this regulation provides a structured framework to ensure that ISPO sustainability standards can be applied consistently across the downstream value chain, reinforcing the credibility of Indonesian palm oil products in global markets.

A Comprehensive Revision Affecting All GGL Standards, Procedures, and Compliance Requirements Green Gold Label (GGL) has officially released a major update across its entire suite of documentation , marking one of the most extensive revisions in recent years. The update covers all key components of the GGL certification framework, including standards, procedures, audit guidelines, calculation tools, and supporting materials. All operators, certificate holders, and auditing bodies are required to refer to and adopt the latest versions published on the GGL Documentation Portal. What Has Been Updated? The recent release introduces significant revisions to multiple document categories: GGL Standards (including GGL for sustainable biomass) Chain of Custody requirements GGL-GHG (Greenhouse Gas) calculation and reporting tools Audit procedures and compliance checklists Templates, forms, and operational guidance These updates replace previous versions, which are no longer valid for compliance or audit preparation. GGL strongly encourages all certified entities and applicants to familiarise themselves with the changes to ensure uninterrupted compliance. Who Will Be Affected? The major update impacts stakeholders across the biomass and renewable energy supply chain, including: Producers and manufacturers Collectors and aggregators Traders and distributors Energy and power companies Certification and assurance bodies Any organisation operating under the GGL scheme must ensure that internal systems, SOPs, and documentation align with the newly issued requirements. Key Implications for Certificate Holders Mandatory transition to revised GGL documentation Adjustments to internal control systems Updates to greenhouse gas emission calculations Revisions to risk assessment and due diligence processes Potential changes in evidence requirements for audits Need for renewed compliance verification before surveillance or recertification audits Early preparation is recommended to avoid compliance gaps and delays during audit cycles. Transition Timeline for the Updated GGL Documentation The revised documentation was officially published on 7 November 2025 , followed by the transition schedule below: Adoption Date — 1 January 2026 The new documentation applies only for the GGL Scope with FIT/FIP-Module beginning 1 January 2026 . Effective Date — 2 March 2026 Starting 2 March 2026 , the previous version becomes ineffective  for the GGL Scope with FIT/FIP-Module. All audits and certification decisions must be based on the updated documentation. Transition Deadline — 31 December 2026 Certification decisions based on the previous version lose validity after 31 December 2026 . Organisations must ensure full transition before this deadline to avoid certification disruption. How Peterson Solutions Indonesia Can Support Your Transition With the release of the updated GGL documentation, organisations may face challenges in interpreting the new requirements or adjusting existing procedures. Peterson Solutions Indonesia  is ready to provide comprehensive support, including: Gap Assessment Against Updated GGL Requirements Evaluating current practices to identify compliance gaps and required improvements. SOP & Documentation Revision Updating internal procedures, control measures, and record-keeping systems according to the latest GGL guidance. GGL-GHG Calculation Support Assisting in recalculating emissions using the latest GGL-GHG methodology and required data inputs. Pre-Audit Readiness Checks Preparing your organisation for surveillance or recertification audits under the updated framework. Training & Capacity Building Delivering tailored training sessions on GGL standards, Chain of Custody, risk assessment, and GHG tools. Our expert team ensures your organisation transitions smoothly to the updated system while maintaining full alignment with GGL requirements.

Understanding the Context As global climate policies evolve, the demand for accurate and transparent greenhouse gas (GHG) reporting is rapidly increasing. From the EU Emissions Trading System (ETS)  to national carbon tax schemes and corporate net-zero commitments, organisations are now expected to quantify and communicate their carbon footprint with precision. Yet, for many businesses—especially those operating in complex, cross-border supply chains—measuring emissions can be a daunting task. Diverse methodologies, data inconsistencies, and resource limitations often stand in the way of meaningful climate action. Recognising this challenge, Green Gold Label (GGL)  has launched a new solution designed to make GHG calculations easier, more consistent, and accessible to all. Introducing the GGL GHG Tool Developed in collaboration with consultancy studio Gear Up , the GGL GHG Tool  provides a practical, standardised method for calculating emissions from various operations, including energy production, transportation, and trade. The tool is built to simplify complex regulatory frameworks—helping users navigate different emission standards across countries and align their data with global reporting requirements. It is available free of charge  upon registration through GGL’s website, offering an inclusive way for both large corporations and small producers to start their GHG accounting journey. Why It Matters The release of the GHG Tool comes at a pivotal moment. As countries strengthen their climate targets, carbon transparency  is becoming a key factor in trade, investment, and compliance. This tool empowers companies to: Calculate and monitor their greenhouse gas emissions in a clear, comparable format. Prepare for evolving policies like carbon border adjustments, carbon taxes, and emission trading systems. Strengthen sustainability disclosures and demonstrate accountability to investors, buyers, and regulators. By lowering the technical barriers to GHG reporting, GGL supports a more level playing field—where environmental integrity and business competitiveness can advance hand in hand. Global and Local Relevance In global markets, access to reliable emission data is becoming essential for export-oriented industries. For developing economies like Indonesia, this means that transparent GHG reporting  will soon be as critical as product quality or certification. Sectors such as palm oil, forestry, renewable energy, and manufacturing  can leverage tools like this to map their carbon footprints, identify reduction opportunities, and align with international buyer expectations. This is particularly important for companies navigating regulations like EUDR , CBAM , or IFRS-S  climate standards—where data-driven proof of sustainability is no longer optional. The Way Forward As the world moves toward a low-carbon economy, practical tools that bridge the gap between policy ambition and on-the-ground implementation are essential. The GGL GHG Tool  is not just a calculator—it’s a step toward enabling inclusive climate accountability, where every actor, from global traders to small producers, can participate in emission reduction efforts. Businesses that start early in tracking and managing their GHG data will be better positioned for future regulations, market opportunities, and partnerships that prioritise sustainability. Conclusion The launch of the GGL GHG Tool underscores one simple truth: you can’t manage what you can’t measure. By providing a user-friendly and transparent system for GHG accounting, GGL helps accelerate global decarbonization efforts while empowering businesses to take concrete climate action. Sustainability begins with measurement—and tools like this make it achievable for everyone. Source: https://greengoldlabel.com/2025/10/30/ggl-launches-its-ghg-tool/

Peterson Indonesia's Environmental Consultants provide direct solutions to your environmental challenges while guaranteeing your trust is well-placed. Peterson Solutio ns Indon esia Sustainability Consulting Find Services Sustainability Reporting Peterson offers a number of services to support you creating a sustainability report, also referred to as a corporate social responsibility (CSR) report. Read more Our Unique Approach At Peterson, we are responsive and flexible. We build corporate teams from different regions and fields of expertise to best suit your requirements. Risk Analysis Peterson can assist our customers in mapping the risks of adverse social and environmental impacts in your supply chain, by commodities and geographies. Read more Read more 70 4000 SOME OF OUR HAPPY CLIENTS Find A Local Office You will be redirected to our international website Find an office News & Events EUDR Delay and Its Global Impact How Europe’s deforestation law postponement affects sustainability and global supply chains The European Union Deforestation Regulation... Oct 7 FSC Approves AP RFSS: A New Opportunity for Smallholders in Asia-Pacific Expanding Inclusive and Efficient Forest Certification for Small-Scale Producers On 18 July 2025 , the Forest Stewardship Council (FSC)... Jul 23 Strengthening Environmental Planning: A Comparison of Government Regulation No. 22 of 2021 and No. 26 of 2025 Background: Building an Integrated Environmental Planning Framework As part of efforts to strengthen environmental protection and... Jun 26 View More Subscribe Form Join Thanks for subscribing!

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