Effect Relationships on Sustainable Development of Palm Oil Production for Independent Smallholder Farmers toward Sustainable Certification System

Palm oil is currently the most widely used vegetable oil in the world and its usage is also expected to double by 2020. However, there are some social and environmental impacts of palm oil plantation. Some complications resulted from the plantation may go as far as mass objections to the production of palm oil. On the contrary, demand for palm oil is still vast and constantly rising. In Indonesia, independent small farmers are the most important stakeholders since they are 43% of the whole Indonesian palm oil producers and have become the biggest spotlight of Indonesian palm oil development, including challenges and problems in which they will have to face to substantially increase their role in the global market as well as maintaining sustainability. Challenges today need to be engaged with innovation and inventions in a more productive and effective way. Enhancing independent small farmers will not only enlarge their contribution to sustainability practices, but also ensuring the sustainable products supplied to the market. Thus, supporting sustainable palm oil production is the way forward. Based on this current issue, this research identifies key point relationships (direct and indirect) on sustainable development factors which are based on Indonesian Sustainable Palm Oil Certification System (ISPO), these identified key points will be the primary target to be improved and government support in fostering the sustainability of palm oil industry will be profoundly necessary.