On 13 January 2026, Indonesia’s Minister of Energy and Mineral Resources issued Minister of Energy and Mineral Resources Regulation No. 3 of 2026 (“Permen ESDM No. 3/2026”) as the technical implementing regulation of Presidential Regulation No. 16 of 2025 on the Indonesian Sustainable Palm Oil Certification System. Effective 22 January 2026, the regulation marks a significant expansion of the Indonesian Sustainable Palm Oil (“ISPO”) framework by extending mandatory certification to palm oil-based bioenergy businesses for the first time. This includes businesses producing biofuel (bahan bakar nabati), biomass, and biogas derived from palm oil. With the compliance deadline set for 20 March 2027, affected businesses now face a relatively short preparation window.
Under Permen ESDM No. 3/2026, ISPO certification for bioenergy businesses must be implemented in line with three core principles: compliance with applicable laws and regulations, supply chain traceability (ketertelusuran), and continuous improvement across economic, social, and environmental aspects. This signals that certification is not intended to function as a one-time administrative exercise, but as a broader governance and sustainability standard for the sector.
To obtain an ISPO certificate, a bioenergy company must submit an application to an ISPO Certification Body (Lembaga Sertifikasi ISPO or LS ISPO), namely an independent certification body accredited by the National Accreditation Committee (Komite Akreditasi Nasional or KAN) for the relevant bioenergy certification scope. Once the certification process is completed and the certificate is issued, the company must report its issuance to the Minister of Energy and Mineral Resources within five working days. The certificate remains valid for five years, and any renewal application must be submitted at least one year before expiry to avoid a lapse in certification status.
The regulation also establishes a structured enforcement framework. Non-compliance — including failure to obtain certification, renew it on time, maintain compliance with ISPO principles, or report the issued certificate to the Minister — may trigger a sequence of administrative sanctions. These include up to three written warnings, each issued 30 calendar days apart, followed by an administrative fine and, ultimately, temporary suspension of business activities. Where no implementing regulation on fines is yet in force, the Minister may move directly to suspension.
Taken together, Permen ESDM No. 3/2026 places palm oil-based bioenergy businesses within Indonesia’s formal sustainability certification architecture, reinforcing the Government’s broader effort to tighten traceability, accountability, and environmental governance across the downstream palm oil sector.