Indonesia is the world’s top palm oil producer and estimated 21 – 23 million tons of CPO in 2012. Currently the total area planted to oil palm in 2010/11 is approximately 7.65 million hectares, having increased at an average annual rate of 300,000 hectares over the past 10 years.

Palm oil is an important and versatile raw material for both food and non-food industries. It contributes to the economic development of Indonesia and serves as an important dietary ingredient for millions of people around the world. However, palm oil faces challenges such as the issue of GHG emissions, social conflict, low productivity of small holders and the conversion of forests to plantations which has significant impacts on forest-dependent communities.

With the goal of facilitating sustainable palm oil, the Ministry of Agriculture, UNDP and several global corporations have partnered to implement the Sustainable Palm Oil (SPO) initiative. The initiative aims to support the sustainable production of palm oil while minimizing adverse social and environmental impacts and building trust in the international community for Indonesian palm oil by strengthening ISPO and assisting smallholders.