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The Sustainability of Independent Palm Oil Smallholders in Multi-Tier Supply Chains in East Kalimantan Indonesia

Type of publication Peer-reviewed
Publikationsform Original article (peer-reviewed)
Author Nashr Fakhrizal, Putri Eka Intan Kumala, Dharmawan Arya Hadi, Fauzi Akhmad,
Project Oil Palm Adaptive Landscapes
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Original article (peer-reviewed)

Journal International Journal of Sustainable Development and Planning
Volume (Issue) 16(4)
Page(s) 771 - 781
Title of proceedings International Journal of Sustainable Development and Planning
DOI 10.18280/ijsdp.160418

Abstract

The smallholder oil palm farmers (SHFs) manage almost half of the Indonesian oil palm area, often associated with unsustainable oil palm sources. There has been limited research conducted to assess SHFs status in Indonesia. This study analyzed sustainability of existing Multi-tier Supply Chain Management through Rapfish diagnostic application with Multi-Dimensional Scaling (MDS) in oil palm mills, suppliers, and SHFs. This study found triadic typologies of MSCs in the Kutai Kartanegara District and six sustainability dimensions including economic, social, ecology, political, and institution to improve the regional strategy for sustainable palm oil plantations in the East Kalimantan Province. The closed triadic relationship in Gunung Sari and Pulau Pinang Villages has better performances on four sustainability dimensions compare to other villages. The oil palm mills could connect directly with SHFs and reduce asymmetric information and rent-seeking behavior through the traceable land ID system and enabling the Public-Private Partnership program.
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