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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/

Europe Reaffirms Its Commitment to Deforestation-Free Trade — EUDR Implementation Update Introduces Targeted Improvements for Smoother Transition The EUDR Implementation Update announced by the European Commission on 21 October 2025 confirms that the EU Deforestation Regulation (EUDR) will take effect as planned on 30 December 2025 for large and medium-sized companies, and on 30 December 2026 for micro and small enterprises. This EUDR Implementation Update introduces targeted simplifications to reporting procedures and strengthens the EU’s digital traceability system — ensuring that the transition toward deforestation-free trade remains efficient, inclusive, and achievable for all supply chain actors. Rather than delaying the regulation, the update ensures that Europe stays on schedule while addressing key implementation challenges for businesses, producers, and national authorities. Simplified Reporting, Same Environmental Ambition To make compliance more efficient, the Commission has introduced a simplified reporting framework: Only the first operator placing a product on the EU market will need to submit a due diligence statement  in the EUDR IT system. Downstream actors (retailers, distributors, or manufacturers) will no longer be required to file separate reports. Micro and small operators from low-risk countries will only need to provide a simple one-time declaration, minimizing administrative work. This streamlined approach is expected to reduce compliance costs by about 30%, without weakening environmental safeguards or traceability. The EUDR’s core objective remains unchanged — to ensure that commodities like palm oil, cocoa, coffee, soy, and timber sold in the EU do not originate from deforested land. Clear Timeline and Transitional Measures The entry into force date remains unchanged: 30 December 2025  → Large and medium-sized enterprises must comply. 30 December 2026  → Micro and small enterprises begin compliance. However, a six-month grace period will apply for checks and enforcement to allow companies and authorities to adapt gradually. This measured approach acknowledges that the EUDR IT system — launched in December 2024 — must handle millions of data entries from global supply chains. The added transitional flexibility ensures the system can operate reliably while maintaining transparency and traceability. Commitment to Effective Implementation The European Commission reiterated that this update does not dilute the EUDR’s ambition or delay its environmental objectives. Instead, it represents a practical and collaborative effort to make implementation work for everyone. “This approach provides certainty and stability, streamlining the process for micro and small producers while maintaining the law’s full ambition,”— Teresa Ribera, Executive Vice-President for a Clean, Just, and Competitive Transition. “It’s not about postponement — it’s about precision. We’re ensuring the rules are applied effectively, fairly, and on time,”— Jessika Roswall, Commissioner for Environment, Water Resilience, and a Competitive Circular Economy. A Step Toward Real-World Sustainability By confirming that the EUDR remains on schedule, the European Commission sends a clear signal: Europe’s environmental commitments are non-negotiable. The adjustments introduced this October are not about changing direction but about building readiness and confidence — ensuring that companies, governments, and smallholders are equally prepared for the transition to deforestation-free supply chains. As implementation continues, collaboration between the EU, producing countries, and private sector partners will be key to making the EUDR a global benchmark for credible, transparent, and inclusive sustainability regulation. Source: European Commission – “Commission proposes targeted measures to ensure the timely implementation of EU Deforestation Regulation,”  Press Release, 21 October 2025.

How the new EU–Indonesia Free Trade Agreement could strengthen economic ties, sustainability, and long-term cooperation The European Commission has officially announced the successful conclusion of negotiations for the EU–Indonesia Free Trade Agreement (FTA). This milestone strengthens the partnership between Europe and Indonesia, paving the way for more open, sustainable, and inclusive economic cooperation. The EU–Indonesia Free Trade Agreement, also referred to as the EU–Indonesia Comprehensive Economic Partnership Agreement (CEPA), aims to reduce trade barriers, promote investment, and enhance fair competition. While negotiations have concluded, the text will now go through legal revision and translation before ratification by both sides. Key Features of the EU–Indonesia Free Trade Agreement According to the European Commission’s official press release ( IP_25_2168 ), the EU–Indonesia CEPA is designed as a comprehensive and balanced trade agreement, covering: Trade in goods  — elimination of tariffs on more than 98% of tariff lines , with around 80% liberalized upon entry into force and the rest phased in within five years. Trade in services and investment  — improved market access and legal certainty for businesses operating in both regions. Customs cooperation and rules of origin  — measures to facilitate smoother, transparent, and predictable trade flows. Technical and regulatory aspects  — including sanitary and phytosanitary standards (SPS), technical barriers to trade (TBT), and intellectual property protection. Good regulatory practices, competition, and transparency  — ensuring fair and rules-based trade. Economic cooperation and capacity building  — promoting inclusive participation of small and medium-sized enterprises (SMEs) and supporting sustainable development goals. The agreement reflects a mutual commitment to strengthen economic ties while addressing shared challenges such as sustainability, fair trade, and regulatory transparency. Opportunities for Indonesia For Indonesia, the conclusion of this trade deal opens access to one of the world’s largest markets. With tariff reductions and stronger investment frameworks, Indonesian exports—such as textiles, footwear, machinery, and agricultural products—can compete more effectively in Europe. The EU–Indonesia Free Trade Agreement also promotes regulatory certainty and encourages long-term partnerships with European investors. Its inclusion of cooperation and capacity-building chapters will help Indonesian institutions and small enterprises improve competitiveness through knowledge transfer and technical assistance. In the long run, the EU–Indonesia CEPA provides a structured path for Indonesia to move up the value chain, aligning its production standards with global sustainability and quality benchmarks.. Implementation Challenges Despite its potential, the EU–Indonesia Free Trade Agreement comes with several challenges that require careful management: Regulatory alignment:  Ensuring that national laws and EU standards are harmonized for smooth implementation. SME inclusion:  Smaller businesses will need access to training, certification, and finance to benefit from the deal. Institutional readiness:  Agencies on both sides must coordinate closely on customs procedures and digital data exchange. Ratification process:  The agreement still requires formal approval by both the EU and Indonesia before it can enter into force. Addressing these issues will ensure that the EU–Indonesia partnership  delivers balanced benefits for businesses, workers, and communities. The Road Ahead As both sides prepare for ratification, maintaining constructive dialogue will be crucial. The EU–Indonesia Free Trade Agreement will work best when supported by mutual trust, transparency, and consistent implementation. Businesses that proactively strengthen their compliance systems—such as supply-chain traceability, quality assurance, and sustainability reporting—will be better positioned to benefit once the agreement becomes operational. The EU–Indonesia trade deal also sets an important example of how open markets can support shared goals on sustainable growth and fair trade. Conclusion The EU–Indonesia Free Trade Agreement marks a major step forward in global cooperation between the European Union and Indonesia. It lays a strong foundation for economic partnership built on openness, fairness, and sustainability. While the legal and political processes continue, both sides now share a clear direction: turning this agreement into a platform for long-term, inclusive growth. With strategic preparation and multi-stakeholder collaboration, Indonesia can position itself as a key partner in Europe’s sustainable trade future. Source: European Commission – Press Release IP_25_2168 , September 2025.

How Europe’s deforestation law postponement affects sustainability and global supply chains The European Union Deforestation Regulation (EUDR) was introduced to prevent products linked to deforestation from entering the EU market. The law requires companies to prove that commodities such as palm oil, coffee, cocoa, soy, and wood are not produced on deforested land. However, the European Commission is now considering delaying the law’s enforcement by one year , shifting the start date to December 2025 . The delay, intended to give companies and EU member states more time to prepare, has sparked debate across the private sector, policymakers, and environmental organizations. While the Commission argues that more time is needed to finalize its IT systems and support smallholder readiness, many see the move as a setback to Europe’s environmental leadership and global climate commitments. Business and Environmental Concerns over the EUDR Delay Several leading companies— Nestlé, Mars, Ferrero , and Olam Agri —have publicly urged the EU to move forward as planned. In a joint letter, they warned that postponing the law would undermine confidence in the EU’s sustainability agenda  and weaken the progress businesses have already made toward ethical and transparent sourcing. These companies have invested heavily in traceability tools, satellite mapping, and supply chain audits to align with EUDR standards. They argue that policy delays create uncertainty for responsible businesses while rewarding those that have yet to act. Environmental organizations share this view. They emphasize that every delay carries an environmental cost , allowing deforestation to continue and slowing momentum toward sustainable land use. Forests in tropical regions—particularly in Southeast Asia, Latin America, and Africa—remain under pressure from agriculture expansion. Advocates stress that EUDR is not just a regulatory requirement but also a moral commitment . By delaying implementation, the EU risks sending the wrong signal about its willingness to act decisively on climate and biodiversity protection. Implementation Challenges On the other hand, some stakeholders, including smallholder producers and EU member states, have expressed concerns about their readiness. Meeting EUDR requirements—such as geolocation mapping, data submission, and product traceability —poses real challenges, especially for farmers in developing regions. The European Commission has acknowledged these barriers and is exploring measures to help producers comply. Proposed support includes technical assistance, digital platforms, and transitional flexibility for countries that demonstrate clear progress. This approach reflects an important balance: the need to uphold environmental integrity while ensuring that the regulation remains fair, inclusive, and practical . The Way Forward The debate over the EUDR delay highlights a broader challenge—how to make sustainability both achievable and enforceable across global supply chains. Meaningful progress will require close collaboration between governments, companies, and producers , as well as transparent communication and capacity building. Even if the regulation is postponed, companies that continue improving traceability, supplier engagement, and risk management systems will be better positioned for compliance and long-term success. Ultimately, sustainability is no longer optional—it is a fundamental part of responsible business. The focus must remain on ensuring that global trade supports both economic growth and environmental protection. Conclusion The discussion surrounding the EUDR delay underscores one clear message: progress in sustainability demands consistency, commitment, and collaboration.  While additional preparation time may benefit some, the urgency of protecting forests and addressing climate change cannot be ignored. Businesses, regulators, and communities must continue working together to ensure that the global supply chain becomes not only more efficient—but also more ethical and resilient. Stay tuned for more updates as EUDR discussions evolve and shape the future of sustainable trade across Europe and beyond Source: https://www.reuters.com/sustainability/boards-policy-regulation/nestle-others-warn-eu-law-delays-are-endangering-forests-worldwide-2025-10-03/ https://www.globalcompliancenews.com/2025/10/02/https-insightplus-bakermckenzie-com-bm-consumer-goods-retail_1-european-union-commission-considering-delaying-eudr-application-for-another-year_09242025/ https://www.esgtoday.com/nestle-mars-other-companies-warn-against-proposed-delay-to-eus-supply-chain-deforestation-law/

Expanding Inclusive and Efficient Forest Certification for Small-Scale Producers On 18 July 2025 , the Forest Stewardship Council (FSC) officially approved the Asia-Pacific Regional Forest Stewardship Standard (AP RFSS)  as a full forest management standard. This decision marked the transition from its pilot status to an official certification framework, effective 1 July 2025 , following four years of trials in countries including Indonesia, Vietnam, Thailand, and India. AP RFSS has been developed specifically for smallholders and small-scale forest managers, aiming to overcome long-standing barriers related to the complexity and cost of conventional FSC certification. Why AP RFSS Matters Throughout the Asia-Pacific region, many smallholders manage forest areas under 5 hectares, often with limited resources and technical skills. The traditional FSC standard has been seen as too complicated for these situations. AP RFSS addresses these challenges through a more practical and context-adapted approach. Its main features include: Clearer and simplified language Flexible and proportionate compliance requirements More affordable and streamlined audit processes Emphasis on field-applicable sustainability practices This tailored approach enables broader participation in sustainable forest management and certification, particularly among smallholder communities. Promising Outcomes from the Pilot Stage Since its pilot launch in 2021, AP RFSS has produced promising results: Over 68 audits  conducted across four countries Approximately 57,000 hectares  of smallholder-managed land certified in Indonesia and Vietnam Positive feedback from farmer groups regarding the relevance and practicality of the standard Opened pathways for certification of non-timber forest products (NTFPs)  and ecosystem services These results played a key role in FSC’s decision to officially endorse AP RFSS as a complete standard for the Asia-Pacific region. Strategic Importance for Indonesia As a country with great potential in smallholder forestry, Indonesia can gain significantly from adopting AP RFSS, especially among: Forest Farmer Groups (Kelompok Tani Hutan/KTH) Forestry cooperatives and agroforestry communities Social forestry programmes and indigenous forest managers This new standard provides a more accessible pathway to international certification, helping smallholders meet market demands for legal and sustainable forest products and boosting their competitiveness in global supply chains. How Peterson Solutions (Indonesia) Can Support As a trusted partner in sustainability and certification services, Peterson Solutions (Indonesia)  is ready to assist organisations, cooperatives, and smallholders in adopting and achieving FSC certification through AP RFSS. Our services include: Technical assistance for AP RFSS compliance Supporting documentation, procedures, and field practices aligned with FSC indicators. Training for farmers and forest management groups Delivering accessible training materials tailored to practical application. Pre-audit assessments and certification readiness Conducting mock audits to identify gaps and ensure preparedness for formal audits. Support for NTFP and ecosystem service development Helping identify and develop sustainable business opportunities for added value. With a context-driven approach and proven on-the-ground experience, Peterson Solutions (Indonesia) is dedicated to making FSC certification more accessible, relevant, and impactful for smallholders and local communities.   Source: https://fsc.org/en/newscentre/general-news/asia-pacific-regional-forest-stewardship-standard-for-smallholders-now-an

Background: Building an Integrated Environmental Planning Framework As part of efforts to strengthen environmental protection and management, the Government of Indonesia has issued two key regulations: Government Regulation (GR) No. 22 of 2021 on the Implementation of Environmental Protection and Management  and GR No. 26 of 2025 on Environmental Protection and Management Planning . These two policies complement each other: GR 22/2021 focuses on technical implementation (such as EIA and environmental permits), while GR 26/2025 reinforces long-term strategic planning through the Environmental Protection and Management Plan (RPPLH) . With an approach based on environmental carrying capacity and load capacity, and enhanced coordination between central and regional governments, GR No. 26 of 2025 serves as a critical instrument to bridge the vision of sustainable environmental governance with national and regional development practices. Key Differences Between GR No. 22 of 2021 and GR No. 26 of 2025 Category GR No. 22 of 2021 GR No. 26 of 2025 Regulatory Focus Implementation of environmental protection and management, including environmental permitting Planning of environmental protection and management through RPPLH development Objective Provides legal basis for EIA, UKL-UPL, and environmental control mechanisms Serves as a reference for environmentally sound national and regional development Main Instruments EIA, UKL-UPL, SPPL, quality standards, environmental monitoring National, Provincial, and District/City-level RPPLH Approach Permit- and activity-based Based on environmental carrying capacity and load capacity, and eco-regions Role of Regional Government Executes environmental approvals and monitors activities Develops and establishes RPPLH as a reference for spatial planning and local development Integration with Spatial Planning Not explicitly required as reference for spatial plans RPPLH must be integrated into Spatial Plans (RTRW)  and Strategic Environmental Assessment (KLHS) Institutional Coordination Focused on permitting and supervision by MoEF and local governments Promotes synergy among MoEF, sectoral ministries/agencies, and local governments in planning Monitoring Supervision of business/activities based on permits Monitoring of RPPLH implementation and periodic evaluation every five years What’s New and Strengthened in GR No. 26 of 2025? Planning as a Foundation This regulation elevates environmental planning from being merely administrative to becoming a decision-making tool for development at all levels of government. Carrying Capacity and Eco-Regions GR 26/2025 adopts an approach based on environmental carrying and load capacity , aligned with eco-regional conditions  to ensure development remains within environmental limits. Integration with Spatial Plans and KLHS RPPLH is established as a key reference in preparing Spatial Plans (Rencana Tata Ruang Wilayah – RTRW)  and conducting Strategic Environmental Assessments (Kajian Lingkungan Hidup Strategis – KLHS) , ensuring that environmental considerations are embedded in land-use and sectoral planning. Evaluation and Reporting Every RPPLH must be reviewed every five years , with evaluation results used to update the plan and assess its effectiveness in environmental protection and management. Why This Matters Consistency Between Permits and Planning These two regulations together ensure a clear legal connection between strategic environmental planning (RPPLH) and its technical execution (environmental permits). Strengthened Legal Certainty RPPLH becomes a legitimate instrument to screen development plans based on environmental capacity, reducing conflicts in land-use decisions. More Controlled Development RPPLH integration into spatial planning helps prevent environmentally damaging expansion and promotes more sustainable land use. Conclusion GR No. 26 of 2025 marks a significant step forward in strengthening Indonesia’s environmental policy framework. Complementing GR No. 22 of 2021, this regulation ensures that all national and local development activities are anchored in a strong, planned, and sustainable environmental foundation. Collaboration between the central government, regional authorities, and relevant sectors is key to ensuring that RPPLH functions not just as a document—but as a guiding instrument for Indonesia’s greener and more resilient future.

Understanding the EU Deforestation Regulation (EUDR) The European Union has adopted the EU Deforestation Regulation (EUDR)  as part of its Green Deal to reduce the bloc’s global deforestation footprint. The regulation requires that products placed on or exported from the EU market must not be sourced from land deforested after 31 December 2020 . The regulation covers seven key commodities: palm oil, cocoa, coffee, soy, rubber, wood, and cattle , along with derived products such as furniture, leather, and processed foods. Implementation Timeline and Technical Guidance Initially set for 30 December 2024  for large companies and 30 June 2025  for SMEs, the European Commission has extended the deadlines following stakeholder feedback: 30 December 2025  for large operators 30 June 2026  for small and medium-sized enterprises (SMEs) In parallel, updated technical guidelines were released in April 2025 to streamline reporting and reduce compliance costs by up to 30%. A Digital Due Diligence System All operators placing in-scope products on the EU market will be required to submit a Due Diligence Statement  digitally via the EU’s official Information System. This declaration must include: Geolocation data of the production area Product volume and type Evidence of deforestation-free origin Compliance with relevant laws in the country of production These declarations carry legal weight and may be subject to verification by EU Member State authorities. Risk-Based Oversight The European Commission will categorise source countries under three risk levels: low, standard, or high . These classifications will determine the depth of scrutiny and documentation required. Indonesia, along with other major producers like Brazil and Malaysia, is expected to be under particular focus—especially for commodities with historical deforestation concerns. What Does This Mean for Indonesia? As a top global exporter of palm oil, rubber, and coffee , Indonesia stands to be directly affected by EUDR. Yet this also presents a unique opportunity to: Strengthen supply chain transparency , particularly for forest-linked commodities Elevate sustainability standards  across producers, cooperatives, and exporters Access green finance opportunities  through conservation-linked initiatives Unlock premium markets  with verified deforestation-free credentials Strategic Steps for Readiness To navigate this transition, stakeholders in Indonesia should prioritise the following: Geospatial supply chain mapping, Implement digital traceability tools to validate origin data. Risk and deforestation assessments, Identify at-risk areas and develop appropriate mitigation strategies. Capacity-building for smallholders and cooperatives, Deliver training and support to ensure practices align with EUDR standards. Foster multi-stakeholder collaboration, Involve government, private sector, and civil society to enhance credibility and data transparency. Building a Sustainable and Resilient Commodity Future EUDR should not be seen solely as a trade barrier, but as a catalyst for transforming Indonesia’s commodity sectors  towards greater transparency, accountability, and long-term market competitiveness. It offers a timely opportunity to align with global climate goals while enhancing Indonesia’s role in sustainable trade. How Peterson Solutions Indonesia Can Support At Peterson Solutions Indonesia , we provide end-to-end advisory services to support EUDR readiness, including: Supply chain risk mapping and assessment Traceability system design and implementation Training for field-level actors and exporters Digital due diligence reporting support With the right preparation and collaborative approach, Indonesian producers and exporters can not only comply with EUDR but lead in the global shift toward sustainable commodities.

PEFC Update: RED III Standards Officially Approved for Renewable Energy Compliance On 8 May 2025, the Programme for the Endorsement of Forest Certification (PEFC) General Assembly officially approved the long-anticipated PEFC RED III standards. This marks a major advancement in aligning forest biomass certification with the European Union's Renewable Energy Directive III (RED III), which sets stricter sustainability and greenhouse gas (GHG) requirements across the renewable energy sector. Strengthening PEFC's Alignment with RED III The approval represents the final procedural step in PEFC's standard-setting process. It follows a positive technical assessment from the European Commission (EC) in April 2025, confirming the readiness of the PEFC RED III certification scheme. The new standards allow PEFC Chain of Custody-certified organisations to obtain a PEFC RED III certificate, enabling them to demonstrate compliance with the sustainability criteria of RED III. Organisations not yet PEFC-certified can also access this framework by simultaneously obtaining both the Chain of Custody and RED III certificates. PEFC RED III certification is applicable worldwide and covers forest biomass, processing residues from forest industries, ligno-cellulosic waste, and fuels derived for heating, cooling, and electricity generation. Key Differences Between PEFC RED II and RED III Aspect PEFC RED II PEFC RED III Legal Alignment Based on RED II (Directive 2018/2001) Fully aligned with RED III (Directive 2023/2413) Certification Structure Separate from PEFC Chain of Custody Integrated with PEFC Chain of Custody with added requirements GHG Emissions Reporting Default values acceptable Requires reporting of actual or default values for full traceability Geographic Scope Primarily EU-based adoption Global applicability Compliance Pathways Single-level compliance mechanism Multi-level: Level A (risk assessment) and Level B (evidence-based) Documentation Requirements Less prescriptive More detailed audit trail and mandatory documentation Risk Assessment Framework Not formally defined PEFC ST 5004 enables recognised Level A national/subnational tools Key Features of PEFC RED III Certification The newly adopted PEFC RED III scheme is a revision of the previous RED II framework and introduces several core comp onents: Expanded Scope : It includes additional requirements for both certified organisations and certification bodies, defined under PEFC ST 5002 and ST 5003 respectively. GHG Calculations and Declarations : Certified producers must report default or actual GHG emissions values throughout the supply chain. Level A Risk Assessments : PEFC ST 5004 provides a mechanism for developing recognised national or sub-national risk assessments that verify compliance with harvesting and land-use carbon stock criteria under Article 29 of RED III. Multi-level Compliance Options : Forest biomass producers in countries with recognised Level A risk assessments are eligible for simplified compliance pathways. Where such assessments are lacking or partial, Level B compliance applies through additional PEFC certification and documentation. Implementation and Global Relevance PEFC RED III certification can be adopted by economic operators globally and is designed to ensure harmonised implementation while offering flexibility to suit different regional contexts. The PEFC scheme integrates seamlessly into the broader EU compliance framework by supporting data traceability and regulatory reporting obligations. This milestone reinforces PEFC's commitment to credible, transparent certification and provides renewable energy operators with a trusted route to demonstrate RED III compliance through sustainably sourced forest biomass. Peterson Solutions Indonesia  stands ready to support your transition to PEFC RED III certification. We offer tailored services including gap assessments, certification readiness support, and training on GHG emissions reporting and risk documentation. Source: https://www.pefc.org/news/pefc-general-assembly-greenlights-red-iii-standards

ASC Update: A New Unified Farm Standard for Responsible Aquaculture The Aquaculture Stewardship Council (ASC)  has released a significant update to its certification programme through the launch of a new unified Farm Standard , now officially in effect. This ASC update  consolidates multiple species-specific standards into a single, integrated framework that strengthens environmental safeguards, improves fish welfare practices, and enhances social responsibility across aquaculture operations. Key Highlights from the ASC Update to Farm Certification The ASC Farm Standard brings several significant changes aimed at improving efficiency, consistency, and impact across certified farms: One Standard for All : Consolidates various species-specific requirements into a unified certification framework. Stronger Fish Welfare Measures : Improved criteria for health, handling, and farming practices. Enhanced Social Safeguards : Clearer protection for workers’ rights and community well-being. Stricter Environmental Requirements : Science-based criteria to reduce biodiversity impact and support ecosystem health. Smarter, Flexible Certification : Designed to adapt to evolving market demands, regulations, and consumer expectations. Transition Period and Implementation The new Farm Standard became effective in May 2025 , with a two-year transition period  allowing farms to adopt the new requirements at their own pace. During this time: Current ASC Species Standards remain valid and in use Certified entities may switch to the new standard when ready ASC offers training, tools, and support to ensure a smooth transition Early adopters will be recognised for leadership in responsible aquaculture Why This Matters With the global demand for seafood increasing and sustainability expectations rising, the updated ASC Farm Standard enables producers and supply chain actors to: Meet compliance more effectively Strengthen supply chain credibility Prepare for future regulatory developments Deliver higher environmental and social performance Support for Your Transition At Peterson Solutions Indonesia, we assist businesses in navigating certification changes with confidence. Our services include: Gap assessments and readiness evaluations Training and capacity building on new ASC requirements Documentation development and stakeholder support Stay ahead by aligning your aquaculture operations with the updated ASC certification framework. For detailed guidance or implementation support, contact us on marketing-indonesia@onepeterson.com . Source: https://asc-aqua.org/news/the-standard-is-changing-join-asc-at-seafood-expo-global-2025-to-hear-more/

ISCC EU Officially Recognised Under the New Renewable Energy Directive (RED III) On 5 May 2025, the European Commission officially issued a positive technical assessment for the updated ISCC EU System Documents, marking an important advancement for ISCC EU RED III compliance. These updates align with the latest legal requirements under Directive (EU) 2023/2413, commonly referred to as the Renewable Energy Directive III (RED III), reinforcing the relevance of ISCC EU RED III implementation across multiple fuel categories. This recognition marks a significant milestone in strengthening credible sustainability certification in line with the EU’s evolving energy policy framework. The updated ISCC EU System Documents are mandatory for all ISCC System Users, auditors, and cooperating Certification Bodies. They also incorporate relevant changes from system updates issued between January and November 2024. Each document includes a clear summary of changes, and a full overview of major updates is available on the ISCC website. What’s New Compared to the Previous Version? The revised ISCC EU documents now reflect stricter legal standards than those under RED II. Key changes include: Broader Scope : Certification now explicitly covers renewable fuels of non-biological origin (RFNBOs), recycled carbon fuels (RCFs), and co-processed fuels. Enhanced Sustainability Criteria : Stricter requirements on land use, GHG emissions reporting, and feedstock traceability. Full Legal Alignment : All documentation has been updated to fully comply with the legal framework introduced under RED III. RED III sets more ambitious renewable energy targets and places greater emphasis on monitoring biomass and advanced fuel categories. Recognised Fuel Categories Under RED III With this recognition, ISCC EU is now officially approved to certify the following fuel categories: Biofuels, bioliquids, and biomass fuels Renewable fuels of non-biological origin (RFNBOs) Recycled carbon fuels (RCFs) Co-processed fuels The technical assessment for forest biomass criteria  is currently underway and pending final validation from the European Commission. Implementation Timeline and Transition Period The revised system documents and summaries of chachange summariesnges are available on the official ISCC website under the “ISCC EU” section. Effective Date : 21 May 2025 – All ISCC EU audits (certification and surveillance) must be conducted in line with the updated requirements from this date onward. Transition Period : Certificates issued prior to 21 May 2025 under the previous system remain valid until their stated expiry. There is no need for immediate re-certification. Material Stock : RED II-compliant materials certified before 21 May 2025 by a voluntary or national scheme recognised under Directive (EU) 2018/2001 may continue to be used to demonstrate compliance with RED III’s sustainability and GHG savings criteria. Upcoming Supporting Documents and Audit Tools By 21 May, the following will be made available: ISCC EU audit procedures Updated templates for Sustainability Declarations and Proofs of Sustainability (PoS) New ISCC EU certificate template (to be integrated into the ISCC HUB) ISCC is also finalising the integration of RED III requirements into the Audit Procedure System (APS), allowing auditors to perform audits fully aligned with the new directive. Updates regarding the availability of these tools will be shared through ISCC System Updates. Why This Matters This update reinforces the commitment to credible, transparent sustainability certification that aligns with the EU’s latest climate and energy directives. Businesses in the bioenergy and renewable fuel sectors must adapt quickly to stay compliant and competitive. Peterson Solutions Indonesia: Your Partner for RED III Transition As a certified consultancy with deep experience in sustainability, Peterson Solutions Indonesia is ready to support your business in: Understanding RED III requirements and their impact on supply chains Conducting gap assessments against the revised ISCC EU criteria Developing strategies and documentation for audit readiness We help ensure your operations remain competitive, compliant, and trusted by the market—stay tuned as we continue to provide guidance and updates ahead of the 21 May 2025 implementation.