Sustainability of the Palm Oil Industry: An Empirical Study of the Development of Sustainable Oil Palm in Bengkalis Regency, Indonesia

Abstract

Bengkalis' economy has continued to contract since 2012. This is due to its very high dependence on oil and gas. It is necessary to develop other sectors that have high potential, such as oil palm plantations and the CPO processing industry which are in line with the Sustainable Development Goals (SDGs). Taking into account the complexities and problems that are quite complicated in the processing of the CPO industry, it is necessary to conduct research to determine the sustainability status of the CPO industry, identify factors that have high sensitivity/influence, and formulate the best scenario for its development. The analytical method used in this study is the Multi Dimensional Scaling (MDS) technique through the Rapid Appraisal Technique (RAP) approach with a multidimensional approach (economic, social, environmental, technological, and institutional). The research was conducted in Bengkalis Regency with respondents being managers of CPO processing industry companies with instruments in the form of questionnaires and structured through in-depth interviews. The data used is primary data. The results showed that the CPO processing industry was classified as sustainable with an index of 59.76. Dimensions included in the less sustainable category are environmental and technological dimensions. This shows that the CPO processing industry has not paid attention to environmental conditions and has not maximized technology to achieve its goals. With an optimistic scenario, the results show an increase in status to be very sustainable with an index of 78.78.