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Analysis of the Sustainability Level of Smallholder Oil Palm Agribusiness in Labuhanbatu Regency, North Sumatra

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  • Tennisya Febriyanti Suardi

    (Doctorate Program of Agricultural Science, Faculty of Agriculture, Padjadjaran University, Sumedang 45363, Indonesia)

  • Lies Sulistyowati

    (Department of Agro Socio-Economics, Faculty of Agriculture, Padjadjaran University, Sumedang 45363, Indonesia)

  • Trisna Insan Noor

    (Department of Agro Socio-Economics, Faculty of Agriculture, Padjadjaran University, Sumedang 45363, Indonesia)

  • Iwan Setiawan

    (Department of Agro Socio-Economics, Faculty of Agriculture, Padjadjaran University, Sumedang 45363, Indonesia)

Abstract

Palm oil is a leading export commodity for Indonesia and the country’s highest foreign exchange earner. This commodity also has a fairly important role in the economy in regions in Indonesia, especially in Labuhanbatu Regency as one of the centers of oil palm production in the Sumatran Archipelago. This study aimed to analyze the level of sustainability of smallholder oil palm agribusiness in Labuhanbatu Regency. The study was designed using quantitative methods and a proportionate stratified random sampling approach with 249 oil palm farmers as research respondents. The data were analyzed using the multi dimensional scaling (MDS) method assisted by the Rap—Palm Oil (RAPPO) software (version 1.0). The results showed that the multidimensional sustainability of the smallholder oil palm agribusiness in Labuhanbatu Regency was in the “fairly sustainable” category. This illustrates that the oil palm agribusiness needs stakeholder support to improve its sustainability status. The highest value is the economic dimension because it is the main source of livelihood for oil palm farmers, while the lowest value is the environmental dimension. The value obtained was influenced by the use of production inputs that were not in accordance with the recommendations.

Suggested Citation

  • Tennisya Febriyanti Suardi & Lies Sulistyowati & Trisna Insan Noor & Iwan Setiawan, 2022. "Analysis of the Sustainability Level of Smallholder Oil Palm Agribusiness in Labuhanbatu Regency, North Sumatra," Agriculture, MDPI, vol. 12(9), pages 1-16, September.
    • Handle: RePEc:gam:jagris:v:12:y:2022:i:9:p:1469-:d:914648
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    References listed on IDEAS

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    1. Iskandar Zainuddin Rela & Muhammad Zamrun Firihu & Abd Hair Awang & Marsuki Iswandi & Jalaluddin Abdul Malek & Anas Nikoyan & La Nalefo & Hartina Batoa & Salahuddin Salahuddin, 2021. "Formation of Farming Community Resilience Models for Sustainable Agricultural Development at the Mining Neighborhood in Southeast Sulawesi Indonesia," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    2. Alexey Bilgaev & Erzhena Sadykova & Anna Mikheeva & Taisiya Bardakhanova & Svetlana Ayusheeva & Fujia Li & Suocheng Dong, 2022. "Green Economy Development Progress in the Republic of Buryatia (Russia)," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    3. Ketut Sukiyono & Muhammad Mustopa Romdhon & Gita Mulyasari & M. Zulkarnain Yuliarso & Musriyadi Nabiu & Agung Trisusilo & Reflis & Dompak M. T. Napitupulu & Yoga Nugroho & May Shiska Puspitasari & Sig, 2022. "The Contribution of Oil Palm Smallholders Farms to the Implementation of the Sustainable Development Goals-Measurement Attempt," Sustainability, MDPI, vol. 14(11), pages 1-16, June.
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    Cited by:

    1. Endah Djuwendah & Tuti Karyani & Eliana Wulandari & Pradono Pradono, 2023. "Community-Based Agro-Ecotourism Sustainability in West Java, Indonesia," Sustainability, MDPI, vol. 15(13), pages 1-18, July.
    2. Florentina-Cristina Merciu & Camelia Teodorescu, 2023. "Agricultural Citizen Science and Sustainable Regional Development," Agriculture, MDPI, vol. 13(6), pages 1-4, June.

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