Triple Bottom Line in Indonesia Commercial Palm Oil Mill Business: Analytical Network Process Approach

Abstract

The latest trend in palm oil business is the emergence of independent commercial crude palm oil (CPO) mills, which emphasize processing FFB from smallholder plantations. The involvement of smallholders without mill in CPO operations shows that there is potential from the business for sustainable development. The purpose of this study to investigate the Indonesian commercial CPO mill business with a triple bottom line perspective. Moreover, this is to gain how much benefit the Commercial CPO mill business is in terms of profit, people and planet. This study applied the Analytic Network Process (ANP) with the criteria of profitability, social justice and environmental quality. This analytical technique uses a number of experts related to the palm oil business and sustainable development. The results of this study reveal that the critical success factors of priority Indonesian commercial CPO mills are the source of raw materials from small farmers (71.90%) and operational considerations of CPO mills (28.10%). While the benefits of this business can create shared value through quadruple helix analysis of academics, entrepreneurs, communities, and government which ranks profit (53.05%), people (23.75%) and planet (23.19%). The significant results of this study revealed that the Indonesia Commercial CPO mill is sustainable from triple bottom line point of view.