Abstract

The purpose of this study was to analyze the supply chain management of CPO in Kuantan Singingi a stream of goods (goods flow), the flow of money (money flow) and the flow of information (information flow), and knowing factors that affect the smoothness of the CPO supply chain. The research method used is descriptive qualitative. This study uses primary data and secondary data. Primary data is in the form of data obtained from the company, interviews with stakeholders (farmers, the Department of Agriculture, Association of Indonesian oil palm farmers and other parties), who are involved either directly or indirectly in the CPO supply chain in the company, while secondary data is in the form of journals and other documents. The flow of goods in the CPO supply chain consists of suppliers, including independent smallholders and smallholders who sell FFB to collectors. These company nuclei are directly brought to the palm oil mill. Then the factory processes the FFB into CPO and is sent to several companies that process derivative products. The financial flow starts from consumers to farmers in cash and non-cash. The flow of information begins from farmers to consumers who provide information in FFB selling prices and CPO prices. Transportation is one factor affecting the smooth supply chain of CPO in Kuantan Singingi District.

Highlights

  • Oil palm development in Riau Province is a potential local resource utilization activity

  • Riau Province has 12 districts, Kuantan Singingi District is in the 5th position, which has an area of coconut plantation and oil palm industry

  • Primary data is in the form of data obtained from the company, interviews with stakeholders, who are involved either directly or indirectly in the crude palm oil (CPO) supply chain in the company, while secondary data is in the form of journals and other documents

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Summary

Introduction

Oil palm development in Riau Province is a potential local resource utilization activity. This is supported by various factors, such as the suitability of the agro-climatological conditions and the availability of suitable land resources. Based on the Central Bureau of Statistics data, the total area of oil palm plantations in Riau Province is 2,572,858 ha. Sub-sectors plantations, especially oil palm, in the supply chain activities are divided into two parts, namely upstream and downstream. Upstream activities include plantation activities, marketing of fresh fruit bunches (FFB), and agroindustrial infrastructure. Downstream activities include palm oil processing factories (PKS), crude palm oil (CPO) stocks, kernels (palm kernel), and export activities. Riau Province has 12 districts, Kuantan Singingi District is in the 5th position, which has an area of coconut plantation and oil palm industry

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