By creating incentives for sustainable production, the Terpercaya approach has the potential to resolve the trade-offs between commodity production and environmental protection, including the production of palm oil. The approach relies on synergies between government authorities and different actors to achieve common goals. Democratically elected local governments play a central role as they have both the authority and legitimacy to issue regulations and policies for sustainability. More importantly, local governments have the authority to monitor and enforce laws and regulations underpinning the transition towards sustainability.