Implementation of environmental policies by six oil palm plantation companies in South Sumatra

Abstract

South Sumatra Province, situated in Indonesia, ranks as the sixth-largest palm oil producer in the country, boasting an extensive plantation area of 1.2 million hectares. Unfortunately, the province has faced significant environmental challenges in recent times due to inadequate environmental management and recurring forest fires. These issues have resulted in adverse effects on the local ecosystem. Consequently, it becomes crucial to conduct a gap analysis of the existing environmental policies and their implementation by oil palm plantation companies operating in South Sumatra Province. The objective of this research is to assess the environmental management practices of companies operating in the oil palm industry in South Sumatra Province, specifically focusing on their adherence to the Indonesia Sustainable Oil Palm (ISPO) criteria. The study aims to evaluate how effectively these companies have implemented environmental policies and identify any disparities or gaps that may exist between the policies and their actual implementation. To achieve this, the research employs a regulatory gap analysis method. The oil palm plantation company in South Sumatra Province has met 105 out of the 126 environmental indicators specified in the ISPO criteria. In general, the implementation of environmental policies on these plantations has achieved an 85% score, indicating a successful fulfillment of the policies outlined by Indonesia Sustainable Palm Oil (ISPO). The relatively low gap value of 0.15 further confirms this success, signifying that the environmental policies have been effectively and adequately implemented in accordance with ISPO’s guideline..