The Agrarian, Structural and Cultural Constraints of Smallholders’ Readiness for Sustainability Standards Implementation: The Case of Indonesian Sustainable Palm Oil in East Kalimantan

Arya Hadi Dharmawan, Dyah Ita Mardiyaningsih, Faris Rahmadian, Bayu Eka Yulian, Heru Komarudin, Pablo Pacheco, Jaboury Ghazoul and Rizka Amalia
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Arya Hadi Dharmawan: Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia
Dyah Ita Mardiyaningsih: Center for Agricultural and Rural Development Studies, Bogor Agricultural University, Bogor 16680, Indonesia
Faris Rahmadian: Center for Agricultural and Rural Development Studies, Bogor Agricultural University, Bogor 16680, Indonesia
Bayu Eka Yulian: Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia
Heru Komarudin: Center for International Forestry Research~(CIFOR), Bogor 16115, Indonesia
Pablo Pacheco: World Wildlife Fund (WWF), Washington, DC 20037, USA
Jaboury Ghazoul: Department of Environmental Systems Science, ETH Zurich, 8092 Zurich, Switzerland
Rizka Amalia: Department of Communication and Community Development Sciences, Bogor Agricultural University, Bogor 16680, Indonesia

Sustainability, 2021, vol. 13, issue 5, 1-20

Abstract: The expansion of oil palm plantation has caused adverse impacts on the ecosystem. It has been associated with deforestation, biodiversity loss, disturbances to environmental services and livelihood change. The government of Indonesia has made an effort to control the negative effects by issuing relevant policies. One of the policies is Indonesian Sustainable Palm Oil (ISPO)’s sustainability standards to which large-scale plantations and smallholders are obliged to adhere. This study assesses the readiness of two types of smallholders, namely, the nucleus–plasma scheme and independent smallholders to adopt ISPO standards. Using a case study research approach in two oil palm plantation villages in East Kalimantan, the study found out a number of ISPO implementation challenges, grouped into structural and socio-cultural challenges, which make smallholders less ready to adhere to this mandatory policy. Coping with these challenges, this study proposed that land and business legality programs be expedited to strengthen property rights, and that training and education programs be intensified to enhance awareness, knowledge and capacity of smallholders to enable them to comply with sustainability standards.

Keywords: oil palm expansion; smallholders; governance; sustainability standards; ISPO (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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