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

Jajang Supriatna (), Djumarno Djumarno, Ahmad Badawy Saluy and Deden Kurniawan
Additional contact information
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

Sustainability, 2024, vol. 16, issue 11, 1-17

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.

Keywords: attribute; MDS RAPFISH; smallholder oil palm; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/11/4383/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/11/4383/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:11:p:4383-:d:1399520

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().