Abstract

As energy source, palm oil has become a serious concern for various palm oil stakeholders because it is related to the vegetable oil needs for 7.7 billion people in the world. Nagan Raya District is a central of palm oil in the western region of Aceh and inseparable from the issue of sustainability. This study is designed using quantitative approach. The data collected by self-administered questionnaire to 300 palm stakeholders. The results indicated that the social variable has strong contribution to sustain the palm oil as one of primary energy source. Also, the economic, environmental and security variables have moderate strength in sustainable palm oil. In addition, the sustainable palm oil model which is built from 20 indicators depicts that the concern of plantation companies in fostering smallholders and communities around the plantation is the strongest indicator, while the indicator of protecting endangered plant and animal species and predatory animals in the natural cycle is the weakest indicator of variables in influencing sustainable palm oil in Nagan Raya Regency.

Highlights

  • Sustainable development has become an interesting issue discussed around the world because it is related to the survival and livelihoods of 7.7 billion people on earth today

  • Sustainable palm oil is receiving very serious attention from many palm oil stakeholders (Basiron, 2007; Ivancic and Koh, 2016). This can be seen from the formation of the roundtable sustainable palm oil (RSPO) organization by global palm oil stakeholders, Indonesian sustainable palm oil (ISPO) by the Indonesian government (Cattau et al, 2015; Hidayat et al, 2018), and Malaysian sustainable palm oil (MSPO) by the Malaysian government (Kuntom et al, 2015; Vogelgeseng et al, 2018)

  • The results of the validity test of the dependent and independent variables of sustainable palm oil on economic balance (X1), social (X2), environment (X3), and security (X4), each of them have a total pearson correlation score greater than r pearson product moment table 0.113 at n = 300

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Summary

Introduction

Sustainable development has become an interesting issue discussed around the world because it is related to the survival and livelihoods of 7.7 billion people on earth today. Sustainable palm oil is receiving very serious attention from many palm oil stakeholders (Basiron, 2007; Ivancic and Koh, 2016) This can be seen from the formation of the roundtable sustainable palm oil (RSPO) organization by global palm oil stakeholders, Indonesian sustainable palm oil (ISPO) by the Indonesian government (Cattau et al, 2015; Hidayat et al, 2018), and Malaysian sustainable palm oil (MSPO) by the Malaysian government (Kuntom et al, 2015; Vogelgeseng et al, 2018). These organizations set the standard principles and criteria for sustainable management of palm oil

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