Terpercaya Study: A Model for Sourcing Palm Oil from Sustainable Jurisdictions in Indonesia

The Terpercaya platform is an instrument for monitoring the performance of palm oil producing districts in Indonesia according to environmental, social, economic, and governance principles. It incentivises districts to improve performance as a means of attracting investment from buyers seeking sustainably produced commodities. This briefing explains how consumer goods companies and other supply chain actors can utilise the Terpercaya system to source commodities from sustainable and deforestation-free districts.

The briefing lays out how the system can help demonstrate that the commodities sourced are both legal and deforestation free. The study then highlights potential complementary measures, such as district wide blacklists and whitelists, to simplify operators’ due diligence processes and maintain market access for sustainable and deforestation-free producers located in lower-performing jurisdictions.

As there is now a great demand, from consumers and governments, for goods companies and supply chain actors to source products sustainably, deforestation free jurisdictional approaches offer a large-scale solution. The findings from this briefing can be used by other commodity producing countries that are interested in using jurisdictional approaches as a method of sustainable production.