Governance Issues in Sustainability Certification: A Review of Implementation Challenges and Complexities

Loso Judijanto

doi:10.59890/ijarss.v3i8.99

Authors

Loso Judijanto IPOSS Jakarta

DOI:

https://doi.org/10.59890/ijarss.v3i8.99

Keywords:

Palm Oil Certification, Governance, MSPO, ISPO, Sustainability

Abstract

The expansion of palm oil sustainability initiatives in Southeast Asia, particularly Malaysia’s MSPO and Indonesia’s ISPO, is central to national certification frameworks but faces persistent governance challenges. This study critically reviews 80 academic sources and institutional reports from 2015 to 2025 to identify these challenges. Thematic analysis highlights four key issues: regulatory fragmentation, lack of audit credibility, stakeholder asymmetry (notably the exclusion of smallholders and civil society), and limited institutional capacity for oversight. These flaws weaken the credibility and global acceptance of MSPO and ISPO, limiting their positive impact on environmental and social outcomes. The review concludes that substantial institutional reforms are necessary for both schemes to meet international sustainability standards. Future research is encouraged to explore hybrid governance models that incorporate robust third-party verification, enforceable due diligence, and increased transparency to enhance legitimacy in global markets.

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