Reinforcing responsible palm oil production through a landscape approach in Indonesia

Indonesia is the world’s leading producer of palm oil, supplying more than half of global production in 2025-26. The sector contributes more than 4% of Indonesia’s GDP, and supports the livelihoods of more than 16 million people. At the same time, palm oil expansion has driven around one third of the country's forest loss over the past two decades.

Deforestation—and its associated climate, nature, and human rights risks—has many complex causes. No single company can solve these challenges alone. Lasting solutions require companies to work with other stakeholders across sourcing landscapes and jurisdictions.

For this reason, the Accountability Framework encourages companies to engage in landscape-level initiatives to address challenges within their supply bases. High Conservation Value Network (HCVN) Secretariat is helping to advance sustainable palm oil as part of a new landscape initiative in Sumatra, Indonesia. 

The Mukomuko landscape initiative: A multi-stakeholder approach to sustainable palm oil

Launched in April 2026 by the Mukomuko Regional Development Planning and Innovation Agency, the initiative brings together civil society, companies, government, and local communities. Smallholder enterprise Arconesia leads the work, with support from HCVN Secretariat and private sector partner SIPEF group.

The initiative aims to improve land use governance, strengthen conservation, and support economic development, covering an area of >440,000 hectares. It will also explore how to position Mukomuko as one of Indonesia’s most responsible palm oil sourcing areas through industry frameworks, regulation, and standards. 

Operationalising landscape goals with technical partnerships

To support the initiative, HCVN is providing tools that support strategic planning and identify risks and opportunities. 

In early 2026, HCVN hosted HCV Screening workshops to identify potential High Conservation Value (HCV) areas and likely threats within the Mukomuko landscape. HCVs are areas that have outstanding biological, ecological, social, or cultural significance. This includes areas with endemic or endangered species and threatened ecosystem services. It also includes places important to Indigenous Peoples and local communities.

The screening looks at how issues such as the expansion of production area, illegal logging, and natural hazards like erosion, flooding, forest fires, and landslides effect HCVs across the landscape. This type of screening is part of a robust approach to due diligence and risk assessment in line with the Accountability Framework. 

This work will help identify priority areas for future collaboration. The HCV Screening will be completed in August 2026. 

Creating impact through private sector engagement

SIPEF group is the first private sector participant in the Mukomuko landscape initiative. It is engaging in the initiative through its subsidiary Tolan Tiga Indonesia. The group produces bananas and palm oil in Côte d’Ivoire, Indonesia, and Papua New Guinea.  

Among the 500 companies assessed by Forest 500, SIPEF group achieved the highest company score in 2025. Its responsible supply chain commitments are also aligned with the Accountability Framework, including a group-wide commitment to no-deforestation with a 2015 cutoff date. In addition, its 2025 Responsible Plantations Policy uses the Framework’s definition of a natural ecosystem.

In Mukomuko, SIPEF group works with smallholder associations to achieve certification to the RSPO Production Standard. This results in smallholder suppliers producing deforestation- and conversion-free palm oil. An independent assessor conducts annual satellite-based monitoring to verify compliance with SIPEF’s no-deforestation and no-conversion commitments. SIPEF group is also collaborating with communities to restore degraded forests in critical areas. Through this work, the group is helping to address land use challenges in line with the Accountability Framework. 

Following best practices with the Accountability Framework

The Accountability Framework advises companies to engage with landscape initiatives, and provides detailed information on how to do so via its Operational Guidance on Achieving Commitments Through Collaboration.

With the Accountability Framework, companies can learn how to: 

• Set and strengthen land use and human rights goals related to landscape initiatives.
• Participate and invest in place-based initiatives that support their goals.
• Report on work to address deforestation, conversion, and human rights abuses beyond their direct production or procurement footprints.
• Use landscape and jurisdictional initiatives to monitor, control, or demonstrate compliance of raw materials. 

In addition, HCV Screening is in line with Accountability Framework Core Principle 10 on collaboration. It helps to: 

• Identify the most critical opportunities for collaboration and risk mitigation to address broader challenges to fulfilling company commitments,
• Build consensus amongst local stakeholders regarding land use designations and protection of natural ecosystems and other areas containing HCVs, and  
• Plan management of both production units and natural ecosystems to safeguard ecological, social, and cultural values across the landscape.  

HCV Screening also provides a baseline for monitoring natural resources and ecosystem services. From that baseline, stakeholders can measure progress on objectives to address deforestation and manage environmental and social features.

From collaboration to impact

The Mukomuko initiative shows how companies can turn their no-deforestation commitments into action. 

Technical partners can help stakeholders understand regional pressures and identify conservation priorities. Meanwhile, private sector actors can align with the Accountability Framework to achieve their responsible supply chain goals. Together, this work can create a stronger foundation for future efforts. 

Over time, landscape-level efforts can strengthen smallholder engagement, support sustainable palm oil production, and improve local livelihoods.