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Sustainability Analysis of Smallholder Oil Palm Plantations in Several Provinces in Indonesia

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  • Jajang Supriatna

    (Economic and Business Science, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta 11650, Indonesia)

  • Djumarno Djumarno

    (Economic and Business Science, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta 11650, Indonesia)

  • Ahmad Badawy Saluy

    (Economic and Business Science, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta 11650, Indonesia)

  • Deden Kurniawan

    (Bachelor of Management, Faculty of Economic and Business, Perbanas Institute, Jakarta 12940, Indonesia)

Abstract

The cultivation of oil palm plantations as a strategy for regional and rural development in Indonesia has significantly strengthened the economic system and livelihoods of agricultural communities. However, despite its growth, sustainability challenges persist, as evidenced through issues such as deforestation, labor concerns, land conflicts, and low worker welfare. The purpose of this study is to evaluate the index and sustainability status of smallholder oil palm plantations in several provinces of Indonesia, as well as to evaluate the index and sustainability status in each dimension (i.e., economic, social, environmental, institutional, and technological). After conducting a structured survey of oil palm farmers who have been operating a plantation for more than 1 year and are members of the Indonesian Planter Society, yielding responses of 757 farmers from Riau, West Kalimantan, Central Kalimantan, and Bangka Belitung Islands provinces, a multidimensional scaling method was utilized to assess the values of the sustainability index, considering attributes related to economic, ecological, social, technological, and institutional factors. The resulting sustainability index is 44.97, placing smallholder oil palm plantations within the less sustainable category. The findings obtained underscore the pressing need for government intervention and support to improve the sustainability of smallholder oil palm plantations in Indonesia. Addressing these concerns requires comprehensive policy interventions and assistance to advance the sustainability of agricultural practices.

Suggested Citation

  • Jajang Supriatna & Djumarno Djumarno & Ahmad Badawy Saluy & Deden Kurniawan, 2024. "Sustainability Analysis of Smallholder Oil Palm Plantations in Several Provinces in Indonesia," Sustainability, MDPI, vol. 16(11), pages 1-17, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:11:p:4383-:d:1399520
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    References listed on IDEAS

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    1. Arya Hadi Dharmawan & Dyah Ita Mardiyaningsih & Heru Komarudin & Jaboury Ghazoul & Pablo Pacheco & Faris Rahmadian, 2020. "Dynamics of Rural Economy: A Socio-Economic Understanding of Oil Palm Expansion and Landscape Changes in East Kalimantan, Indonesia," Land, MDPI, vol. 9(7), pages 1-20, July.
    2. Erik G. Hansen & Friedrich Grosse-Dunker & Ralf Reichwald, 2009. "Sustainability Innovation Cube — A Framework To Evaluate Sustainability-Oriented Innovations," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 683-713.
    3. Baumgärtner, Stefan & Quaas, Martin, 2010. "What is sustainability economics?," Ecological Economics, Elsevier, vol. 69(3), pages 445-450, January.
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