Indonesian Sustainable Palm Oil Research Articles

Adoption of Sustainable Palm Oil Practices by Indonesian Smallholder Farmers

The Indonesian Sustainable Palm Oil (ISPO) was introduced as a mandatory sustainability standard for large oil palm producers in 2011. While these standards are voluntary for smallholder farmers, some of their crop management practices may converge with ISPO principles. Hence, this study investigates oil palm practices among smallholder farmers in Merangin district in Jambi province, Sumatra. We draw upon a three-year panel data set of 233 oil palm smallholder farmers. We assess the factors that explain the use of these practices first by means of a bivariate probit model for a sequence of practices defined as implementation thresholds. Second we apply a count model to examine the intensity of ISPO practices. Results show that the use of ISPO-type crop management practices is not widespread among oil palm smallholders. Sixty per cent of the farmers used four practices, and this share drops to 40 per cent for six practices. Among the factors that determine the use of practices were household characteristics, economic shocks and farmers’ perceived risk of diminishing oil palm productivity. This study provides a basis for developing an extension strategy of introducing ISPO practices for oil palm smallholders.

PENCAPAIAN STANDAR INDONESIAN SUSTAINABLE PALM OIL (ISPO) DALAM PENGELOLAAN PERKEBUNAN KELAPA SAWIT DI KALIMANTAN TIMUR / Achievement of Indonesian Sustainable Palm Oil Standards of Palm Oil Plantation Management in East Borneo Indonesia

Strong opinions have been expressed toward oil palm plantation industry in Indonesia, and these opinions portray that oil palm plantation development in Indonesia has caused the destruction of the environment. One of the efforts currently undertaken by the Indonesian government to ensure the sustainability of the palm oil industry is establishing sustainability standard called the Indonesian Sustainable Palm Oil (ISPO) which is mandatory. ISPO is for sustainable oil palm development as well as a commitment based on the laws and regulations aplication of some licenses in Indonesia. The purpose of this study was to determine the capability of oil palm plantation companies in the regional to meet the standards of the Indonesian Sustainable Palm Oil (ISPO) and to identify the problems faced in achieving these standards. This research was conducted in East Kalimantan province on the period June 2012-May 2013. Evaluation of the capability of the companies to achieve the ISPO standards was performed by the audit method, assessment results of all parameters that had been established in accordance with the Principles, Criteria and Indicators in the provision of ISPO which were assessed in a percent unit. The research results showed that the capability of the plantation companies in East Kalimantan in meeting the ISPO standards reached 79,14%, and this capability can be improved up to 100% by increasing efforts to comply with the principles, criteria and indicators that are still not in accordance with the provisions of ISPO are as follows: 1). Licence system and plantation management, 2). Aplication guidance cultivation technics and processing palm fruit, 3). Management and monitoring invironment, 4). Resposibility to workers, and 5). Social resposibility and community. The determantion factor performance on ISPO standard is the commitment of plantation company as a business stakeholder that supported by capable human resources to create the sustainable plantation development and also the goverment action in charge as the regulator in supervising the policy that has been set. Socialization and training about principles and criteria ISPO standard to plantation company needs soon and more intensively done by the government association with ISPO commission to accelerate the application of the ISPO. Socialization and training also are required in order to overcome the constraints in attainment of principles and criteria of the Indonesian Sustainable Palm Oil standard, because of the mentioned efforts are the part of success factors to apply the ISPO. Keyword: ISPO, Management, Palm Oil, Plantations, Sustainable.

Analisis Pengelolaan Lingkungan Pabrik Kelapa Sawit Batu Ampar - PT. Smart Tbk. Dalam Implementasi Indonesian Sustainable Palm Oil

Indonesian Sustainable Palm Oil (ISPO) is a standard system of sustainable palm oil plantations in Indonesia are economically viable, socially viable and environmentally friendly which is compulsory in accordance with the regulations. This study aims to analyze the environmental management performance in palm oil mill Batu Ampar and formulate the performance optimization based on the ISPO requirements. The evaluation shows that the company can meet the 38 indicators related to environmental management with some of the achievements include utilization of renewable energy sources that generate energy by 5.0664 million KWh, amounting to 1,677,615.89 liters of diesel fuel savings, reduction in CO2 emissions by 70.63 Kg / ton CPO, chemical fertilizers worth saving Rp.5.750.080,00 / ha / year. The optimization strategy for continuous improvement which is based on the SWOT analysis include: the selection of accredited laboratories, improve the performance of Waste Water Treatment Plant, planned to construct methane capture, optimizing the utilization of solid waste, optimizing the reduction of hazardous waste, provide input in determining government policy, and training routine related to environmental management to improve the competence of personnel. Keywords: environmental management, optimization, performance, sustainable

Analisis Pengelolaan Lingkungan Pabrik Kelapa Sawit Batu Ampar - PT. SMART Tbk. dalam Implementasi Indonesian Sustainable Palm Oil

Analisis Pengelolaan Lingkungan Pabrik Kelapa Sawit Batu Ampar - PT. SMART Tbk. dalam Implementasi Indonesian Sustainable Palm Oil

Analisis Lingkungan Sosial Ekonomi Pengelolaan Perkebunan Kelapa Sawit Berkelanjutan Berdasarkan Kriteria ISPO PT. Tapian Nadenggan

Indonesian’s Goverment has obliged palm oil plantation companies to produce sustainable palm oil by the regulation from ministry of Agriculture No. 19/2011 about guidelines for Indonesian Sustainable Palm Oil (ISPO). This research aimed to study the plantation management of PT. Tapian Nadenggan from their existing socio-economic aspects, then to analyze its sustability according to ISPO’s principles and creteria. The method was done by collecting primary data through interview(in general as well as intensive interview with key spekers), distributing questionnaires, executing field observation, taking respondent by purposive sampling method. Secondary data was obtained from the company’s data and literature review. The analysis result shows that the process of the land approval and the company’s responsibility toward their employess are convenient with ISPO’s principles and criteria. While for the execution of plasma plantation, the company’s social responsibility toward local culture development has not been fulfilled yet. Keywords: ISPO, palm oil, social economic

Analisis Lingkungan Sosial Ekonomi Pengelolaan Perkebunan Kelapa Sawit Berkelanjutan Berdasarkan Kriteria ISPO PT. Tapian Nadenggan

Indonesian’s Goverment has obliged palm oil plantation companies to produce sustainable palm oil by the regulation from ministry of Agriculture No. 19/2011 about guidelines for Indonesian Sustainable Palm Oil (ISPO). This research aimed to study the plantation management of PT. Tapian Nadenggan from their existing socio-economic aspects, then to analyze its sustability according to ISPO’s principles and creteria. The method was done by collecting primary data through interview(in general as well as intensive interview with key spekers), distributing questionnaires, executing field observation, taking respondent by purposive sampling method. Secondary data was obtained from the company’s data and literature review. The analysis result shows that the process of the land approval and the company’s responsibility toward their employess are convenient with ISPO’s principles and criteria. While for the execution of plasma plantation, the company’s social responsibility toward local culture development has not been fulfilled yet. Keywords: ISPO, palm oil, social economic

SUSTAINABLE AGRICULTURE: A CASE STUDY ON THE PALM OIL INDUSTRY

The palm oil industry has long suffered criticism for destroying forest, wildlife and denying rightful ownership of land. To avert these persisting criticisms, the Roundtable on Sustainable Palm Oil (RSPO) was formed by a diverse group of stakeholders in the palm oil industry, to promote sustainable agriculture and address environment impact. Sustainability efforts begin from good environmental, social and agricultural practices: where the oil palm is first planted and grown to it final destination, the plate of a consumer or other products. The palm oil industry is the first to have certified sustainable produce, through the RSPO certification. The sustainability measurements are based on RSPO‟s 8 principles, 39 criteria, 126 indicators and guidance. The formation of the RSPO has not been without criticism from various sectors, especially the environmental NGOs. Sustainability in agricultural practises is no more an option, and agriculture need to feed the growing billions in the earth‟s population. The ever degrading environment needs protection and restoration. But, we can afford to fail with or without RSPO and other efforts by the industry similar to Malaysian Palm and Indonesian Sustainable Palm Oil should be given encouragement and support. (Key Words: Agriculture, Palm Oil, Sustainable, Small Farmers, Life Cycle)

Perbandingan Rendemen Kelapa Sawit (Elaeis guineensis Jacq.) di Perkebunan Rakyat dan Perkebunan PT Tidar Kerinci Agung

Plantation of PT. Tidar Kerinci Agung (PT. TKA) is a company engaged in oil palm plantations with an area of 24,000 ha and has been certified by Indonesia Sustainable Palm Oil (ISPO). PT. TKA has a factory for Crude Palm Oil (CPO) processing, therefore the local community can sell their palm oil yield to the factory. However, the purchase of Fresh Fruit Bunches (FFB) from the community was constrained by the fact that many people use random seeds which reduce the quality of CPO, moreover the agronomic factors such as fertilization, rainfall, plant maintenance and harvesting on smallholder plantations which are the factors that can reduce the quality of CPO. The present study was conducted for 3 months, with the objective was to determine the comparison of the palm oil extraction rate between smallholder plantations and large-scale estate (PT. Tidar Kerinci Agung). The research method was a survey by purposive sampling to obtained data on oil palm production, especially in relation with oil extraction rate. The result showed that the oil extraction rate of CPO was 24.51% and it’s on Palm Kernel Oil (PKO) was 4.45% in large-scale estate (PT. TKA). It was higher than the oil extraction rate on smallholder plantations. The oil extraction rate of CPO and PKO in the high yielding, moderate yielding, and low-yielding smallholder plantations were CPO 20.55% and PKO 4.42%, CPO 21.50% and PKO 3.77%, and CPO 18.35% and PKO 4.34%, respectively.