Improving performance of independent smallholders towards the principles of Indonesian Sustainable Palm Oil Certification in Riau Province: prospective scenario approach

Abstract

Certification is increasingly important to ensure sustainability. However, certification is a challenge for palm oil farmers. This study aimed to: 1) evaluate the application of Indonesian Sustainable Palm Oil (ISPO) standards by independent smallholders; 2) analyse the lever attributes; 3) formulate strategies for successful ISPO implementation. This research applied survey method towards 270 independent farmers and key respondents. Data analysis was performed descriptively and by prospective analysis. The results showed that the application of ISPO indicators by independent smallholders is still low and there are many indicators that have not been applied. The critical determinants of the implementation of ISPO are the benefits of ISPO, guidance, documentation, financial assistance, partnerships, stakeholder roles, human resources, and legal certainty. The best strategy to implement the ISPO standard is through synergy between the government and stakeholders in terms of government policies that support the enhancement of human resource capabilities, capital capabilities, farm management capabilities and marketing capabilities.