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

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 Manag...

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Bibliographic Details
Main Authors: Nashr, F., Putri, E.I.K., Dharmawan, A.H., Fauzi, A.
Format: Journal Article
Language:Inglés
Published: International Information and Engineering Technology Association 2021
Subjects:
Online Access:https://hdl.handle.net/10568/115404
Description
Summary: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.