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The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia

Author

Listed:
  • Eka Intan Kumala Putri

    (Department of Resource and Environmental Economics, Bogor Agricultural University, Bogor 16680, Indonesia)

  • Arya Hadi Dharmawan

    (Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia)

  • Otto Hospes

    (Public Administration and Policy, Wageningen University and Research, 6706 KN Wageningen, The Netherlands
    Faculty of Human Ecology, Bogor Agricultural University, Bogor 16680, Indonesia)

  • Bayu Eka Yulian

    (Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia
    Center for Agrarian Studies, Bogor Agricultural University, Bogor 16129, Indonesia)

  • Rizka Amalia

    (Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia)

  • Dyah Ita Mardiyaningsih

    (Center for Agrarian Studies, Bogor Agricultural University, Bogor 16129, Indonesia)

  • Rilus A. Kinseng

    (Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia)

  • Fredian Tonny

    (Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia
    Tani Center, Bogor Agricultural University, Bogor 16680, Indonesia)

  • Eusebius Pantja Pramudya

    (School of Business and Economics, Universitas Prasetiya Mulya, BSD City, Tangerang 15339, Indonesia)

  • Faris Rahmadian

    (Center for Agrarian Studies, Bogor Agricultural University, Bogor 16129, Indonesia)

  • Diah Y. Suradiredja

    (Kehati Foundation, Jakarta 12720, Indonesia)

Abstract

Nowadays, Indonesian palm oil faces agrarian, environmental, and social issues and has been subject to sharp criticism from the international community for many years. To answer this problem, the Indonesian government implemented a strategy through certification which ensured the achievement of sustainability standards, especially on the upstream side of the palm oil supply chain. The implementation of Indonesian Sustainable Palm Oil (ISPO) was an ultimate instrument that applied in particular to smallholders oriented towards managing land legal issues, plantation business licenses, plant seeds, and environmental management and to farmer organizations at the local level. However, this process faced quite complex challenges in the form of structural barriers that are very constraining. This study revealed the occurrence of the phenomenon of hollow governance when regulations are absent or collide with each other. The study also revealed institutional power and multi-level governance that made the governance process ineffective or counterproductive. With a qualitative approach to research conducted in three important palm oil provinces of Indonesia, this article aims to look at the issues of oil palm governance a bit more comprehensively. The study conceptualized what was referred to as low-functioning governance to describe how weak the institutions, organizations, actors, and resources are that support ISPO implementation, especially at the regional and local levels. This paper suggests improving and strengthening the ISPO oil palm governance if Indonesian palm oil companies and smallholders want to gain better credibility on sustainability abroad.

Suggested Citation

  • Eka Intan Kumala Putri & Arya Hadi Dharmawan & Otto Hospes & Bayu Eka Yulian & Rizka Amalia & Dyah Ita Mardiyaningsih & Rilus A. Kinseng & Fredian Tonny & Eusebius Pantja Pramudya & Faris Rahmadian & , 2022. "The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia," Sustainability, MDPI, vol. 14(3), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1820-:d:742642
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    References listed on IDEAS

    as
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