Policy governance in the plantation sector: Challenges and impacts of palm oil in Riau Province, Indonesia

Rahyunir Rauf, Nina Yuslaini, Ranggi Ade Febrian, Sri Maulidiah

Article ID: 3181
Vol 8, Issue 5, 2024

VIEWS - 2150 (Abstract)

Abstract


This study aims to examine and challenge the impact of local government policy governance on the oil palm plantation sector in Riau Province, Indonesia. It was discovered that 1,628 million hectares of illegal oil palm plantations are located within forest areas. Plantation area and crop harvest areas are declining due to the increase in damaged old plants, low productivity of plantation crops, inadequate facilities and infrastructure conditions, low technology application, plantation business licensing, limited downstream plantation industry and marketing, assistance in changing the attitudes, behavior, and skills of farmers. The methodology used was exploratory qualitative to explore this topic, and the determination of research topics was conducted using Biblioshiny application analysis. Then, the data was analyzed using Nvivo 12 Plus software. The results of this study discovered that the policy governance of the oil palm plantation sector as a leading commodity in Riau Province, Indonesia, is influenced by three dimensions: firstly, the actor dimension; secondly, the structural dimension; and third, the empirical dimension of governance. This research contributes as a knowledge reference to oil palm plantations.


Keywords


policy governance; plantation; oil palm; local government

Full Text:

PDF


References

  1. Abafe, E. A., Bahta, Y. T., & Jordaan, H. (2022). Exploring Biblioshiny for Historical Assessment of Global Research on Sustainable Use of Water in Agriculture. Sustainability, 14(17), 10651. https://doi.org/10.3390/su141710651
  2. Abdul Majid, N., Ramli, Z., Md Sum, S., & Awang, A. H. (2021). Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review. Sustainability, 13(6), 3263. https://doi.org/10.3390/su13063263
  3. Adlini, M. N., Dinda, A. H., Yulinda, S., et al. (2022). Qualitative research method: literature study. Edumaspul: Jurnal Pendidikan, 6(1), 974–980. doi: 10.33487/edumaspul.v6i1.3394
  4. Ali, E. B., Anufriev, V. P., & Amfo, B. (2021). Green economy implementation in Ghana as a road map for a sustainable development drive: A review. Scientific African, 12, e00756. https://doi.org/10.1016/j.sciaf.2021.e00756
  5. Astuti, R., Miller, M. A., McGregor, A., et al. (2022). Making illegality visible: The governance dilemmas created by visualising illegal palm oil plantations in Central Kalimantan, Indonesia. Land Use Policy, 114, 105942. https://doi.org/10.1016/j.landusepol.2021.105942
  6. Bakce, D., Syahza, A., & Asmit, B. (2019). Economic Development of Inter-State Border Areas in Riau Province. Unri Conference Series: Agriculture and Food Security, 1, 182–189. https://doi.org/10.31258/unricsagr.1a24
  7. Begum, F., Lobry de Bruyn, L., Kristiansen, P., & Islam, M. A. (2021). Institutionalising co-management activities for conservation of forest resources: Evidence from the Sundarban mangrove forest management of Bangladesh. Journal of Environmental Management, 298, 113504. https://doi.org/10.1016/j.jenvman.2021.113504
  8. Brennan, N. M., Subramaniam, N., & Van Staden, C. J. (2019). Corporate governance implications of disruptive technology: An overview. The British Accounting Review, 51(6), 100860. https://doi.org/10.1016/j.bar.2019.100860
  9. Ciasullo, M. V., Troisi, O., Grimaldi, M., & Leone, D. (2020). Multi-level governance for sustainable innovation in smart communities: an ecosystems approach. International Entrepreneurship and Management Journal, 16(4), 1167–1195. https://doi.org/10.1007/s11365-020-00641-6
  10. Cofré-Bravo, G., Klerkx, L., & Engler, A. (2019). Combinations of bonding, bridging, and linking social capital for farm innovation: How farmers configure different support networks. Journal of Rural Studies, 69, 53–64. https://doi.org/10.1016/j.jrurstud.2019.04.004
  11. Cosar, K., & Thomas, B. (2021). The geopolitics of international trade in Southeast Asia. Review of World Economics, 157(1), 207–219. https://doi.org/10.1007/s10290-020-00403-0
  12. Creswell, J. W. (2021). A concise introduction to mixed methods research. SAGE publications.
  13. Creswell, J. W., Hanson, W. E., Clark Plano, V. L., & Morales, A. (2007). Qualitative Research Designs. The Counseling Psychologist, 35(2), 236–264. https://doi.org/10.1177/0011000006287390
  14. Dewi, L. K., Nasution, A. H., & Noer, B. A. (2017). Model Dasar Pengembangan Business Model Canvas ke Balanced Scorecard (Studi Kasus: PT. Boma Bisma Indra). Jurnal Sains Dan Seni ITS, 6(2). https://doi.org/10.12962/j23373520.v6i2.24371
  15. Dharmawan, A. H., Mardiyaningsih, D. I., Komarudin, H., et al. (2020). Dynamics of Rural Economy: A Socio-Economic Understanding of Oil Palm Expansion and Landscape Changes in East Kalimantan, Indonesia. Land, 9(7), 213. https://doi.org/10.3390/land9070213
  16. Diaz-Castro, L., Suarez-Herrera, J. C., Gonzalez-Ruiz, O. O., et al. (2023). Governance in mental healthcare policies during the COVID-19 pandemic in Mexico. Frontiers in Public Health, 11. https://doi.org/10.3389/fpubh.2023.1017483
  17. Dinas Perkebunan Provinsi Riau. (2020). Rencana Strategis Dinas Perkebunan Provinsi Riau 2020-2024. Available online: https://disbun.riau.go.id/include/assets/file/RENSTRA_Disbun.pdf (accessed on 28 August 2023).
  18. Ekawati, S., Subarudi, Budiningsih, K., et al. (2019). Policies affecting the implementation of REDD+ in Indonesia (cases in Papua, Riau and Central Kalimantan). Forest Policy and Economics, 108, 101939. https://doi.org/10.1016/j.forpol.2019.05.025
  19. Fadli, M. R. (2021). Memahami desain metode penelitian kualitatif. HUMANIKA, 21(1), 33–54. https://doi.org/10.21831/hum.v21i1.38075
  20. Gjaltema, J., Biesbroek, R., & Termeer, K. (2019). From government to governance…to meta-governance: a systematic literature review. Public Management Review, 22(12), 1760–1780. https://doi.org/10.1080/14719037.2019.1648697
  21. Harsono, D., Chozin, M. A., & Fauzi, A. M. (2012). Analysis on Indonesian Sustainable Palm Oil (ISPO): A Qualitative Assessment the Success Factors for ISPO. Jurnal Manajemen &Agribisnis. https://doi.org/10.17358/jma.9.2.39-48
  22. Hatane, S. E., Diandra, J. C., Tarigan, J., & Jie, F. (2021). Voluntary intellectual capital disclosure and earnings forecast in Indonesia–Malaysia–Thailand growth triangle’s pharmaceuticals sector. International Journal of Emerging Markets, 18(1), 1–21. https://doi.org/10.1108/ijoem-01-2020-0028
  23. Hernita, H., Surya, B., Perwira, I., et al. (2021). Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia. Sustainability, 13(6), 3177. https://doi.org/10.3390/su13063177
  24. Hsieh, L., Child, J., Narooz, R., et al. (2019). A multidimensional perspective of SME internationalization speed: The influence of entrepreneurial characteristics. International Business Review, 28(2), 268–283. https://doi.org/10.1016/j.ibusrev.2018.09.004
  25. Ishtiaq, M. (2019). Research Design: Qualitative, Quantitative and Mixed Methods Approaches, 4th ed. Thousand Oaks, CA: Sage. https://doi.org/10.5539/elt.v12n5p40
  26. Kiger, M. E., & Varpio, L. (2020). Thematic analysis of qualitative data: AMEE Guide No. 131. Medical Teacher, 42(8), 846–854. https://doi.org/10.1080/0142159x.2020.1755030
  27. Kim, S., & Baniamin, H. M. (2021). Understanding the Dynamics of Institutional Trust in Indonesia, Malaysia, and Thailand. International Journal of Public Administration, 45(15), 1092–1102. https://doi.org/10.1080/01900692.2021.1948566
  28. Korosteleva, E. A., & Flockhart, T. (2020). Resilience in EU and international institutions: Redefining local ownership in a new global governance agenda. Contemporary Security Policy, 41(2), 153–175. https://doi.org/10.1080/13523260.2020.1723973
  29. Kramar, R. (2022). Sustainable human resource management: six defining characteristics. Asia Pacific Journal of Human Resources, 60(1), 146–170. https://doi.org/10.1111/1744-7941.12321
  30. Krupiy, T. (Tanya). (2020). A vulnerability analysis: Theorising the impact of artificial intelligence decision-making processes on individuals, society and human diversity from a social justice perspective. Computer Law & Security Review, 38, 105429. https://doi.org/10.1016/j.clsr.2020.105429
  31. Leung, T. N., Chiu, D. K. W., Ho, K. K. W., & Luk, C. K. L. (2021). User perceptions, academic library usage and social capital: a correlation analysis under COVID-19 after library renovation. Library Hi Tech, 40(2), 304–322. https://doi.org/10.1108/lht-04-2021-0122
  32. Li, T. M. (2021). Commons, co-ops, and corporations: assembling Indonesia’s twenty-first century land reform. The Journal of Peasant Studies, 48(3), 613–639. https://doi.org/10.1080/03066150.2021.1890718
  33. Skjott Linneberg, M., & Korsgaard, S. (2019). Coding qualitative data: a synthesis guiding the novice. Qualitative Research Journal, 19(3), 259–270. https://doi.org/10.1108/qrj-12-2018-0012
  34. Mansoor, M. (2021). Citizens’ trust in government as a function of good governance and government agency’s provision of quality information on social media during COVID-19. Government Information Quarterly, 38(4), 101597. https://doi.org/10.1016/j.giq.2021.101597
  35. Moeliono, M., Brockhaus, M., Gallemore, C., et al. (2020). REDD+ in Indonesia: A new mode of governance or just another project? Forest Policy and Economics, 121, 102316. https://doi.org/10.1016/j.forpol.2020.102316
  36. Monzon, J. P., Slingerland, M. A., Rahutomo, S., et al. (2021). Fostering a climate-smart intensification for oil palm. Nature Sustainability, 4(7), 595–601. https://doi.org/10.1038/s41893-021-00700-y
  37. Moon, K., Blackman, D. A., Adams, V. M., et al. (2019). Expanding the role of social science in conservation through an engagement with philosophy, methodology, and methods. Methods in Ecology and Evolution, 10(3), 294–302. https://doi.org/10.1111/2041-210x.13126
  38. Nurfatriani, F., Sari, G. K., & Komarudin, H. (2019). Optimization of crude palm oil fund to support smallholder oil palm replanting in reducing deforestation in Indonesia. Sustainability, 11(18), 4914. doi: 10.3390/su11184914
  39. Nurfatriani, F., Ramawati, R., Sari, G. K., et al. (2022). Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme. Land, 11(9), 1452. https://doi.org/10.3390/land11091452
  40. Omri, A., & Ben Mabrouk, N. (2020). Good governance for sustainable development goals: Getting ahead of the pack or falling behind? Environmental Impact Assessment Review, 83, 106388. https://doi.org/10.1016/j.eiar.2020.106388
  41. Park, H., & Kim, J. D. (2020). Transition towards green banking: role of financial regulators and financial institutions. Asian Journal of Sustainability and Social Responsibility, 5(1). https://doi.org/10.1186/s41180-020-00034-3
  42. Pasaribu, S. I., Vanclay, F., & Zhao, Y. (2020). Challenges to Implementing Socially-Sustainable Community Development in Oil Palm and Forestry Operations in Indonesia. Land, 9(3), 61. https://doi.org/10.3390/land9030061
  43. Pemerintah Provinsi Riau. (2019). Regional Medium-Term Development Plan of Riau Province 2019-2024 (Indonesian). Available online: https://ppid.riau.go.id/download/11/1591586067rencana-pembangunan-jangka-menengah-daerah-rpjmd-provinsi-riau-tahun-2019-2024.pdf (accessed on 28 August 2023).
  44. Pramudya, E. P., Wibowo, L. R., Nurfatriani, F., et al. (2022). Incentives for Palm Oil Smallholders in Mandatory Certification in Indonesia. Land, 11(4), 576. https://doi.org/10.3390/land11040576
  45. Putri, E. I. K., Dharmawan, A. H., Hospes, O., et al. (2022). The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia. Sustainability, 14(3), 1820. https://doi.org/10.3390/su14031820
  46. Rahmadani, V. G., Schaufeli, W. B., Stouten, J., et al. (2020). Engaging Leadership and Its Implication for Work Engagement and Job Outcomes at the Individual and Team Level: A Multi-Level Longitudinal Study. International Journal of Environmental Research and Public Health, 17(3), 776. https://doi.org/10.3390/ijerph17030776
  47. Reed, J., Chervier, C., Borah, J. R., et al. (2023). Co-producing theory of change to operationalize integrated landscape approaches. Sustainability Science, 18(2), 839–855. https://doi.org/10.1007/s11625-022-01190-3
  48. Roengtam, S., & Agustiyara, A. (2022). Collaborative governance for forest land use policy implementation and development. Cogent Social Sciences, 8(1). https://doi.org/10.1080/23311886.2022.2073670
  49. Salleh, S. F., Mohd Roslan, M. E., Abd Rahman, A., et al. (2020). Transitioning to a sustainable development framework for bioenergy in Malaysia: policy suggestions to catalyse the utilisation of palm oil mill residues. Energy, Sustainability and Society, 10(1). https://doi.org/10.1186/s13705-020-00269-y
  50. Savari, M., & Shokati Amghani, M. (2022). SWOT-FAHP-TOWS analysis for adaptation strategies development among small-scale farmers in drought conditions. International Journal of Disaster Risk Reduction, 67, 102695. https://doi.org/10.1016/j.ijdrr.2021.102695
  51. Savini, F. (2019). The economy that runs on waste: accumulation in the circular city. Journal of Environmental Policy & Planning, 21(6), 675–691. https://doi.org/10.1080/1523908x.2019.1670048
  52. Setijadi, C. (2022). ‘We are people of the Islands’: translocal belonging among the ethnic Chinese of the Riau Islands. Asian Ethnicity, 24(1), 108–131. https://doi.org/10.1080/14631369.2022.2069082
  53. Skjærseth, J. B. (2021). Towards a European Green Deal: The evolution of EU climate and energy policy mixes. International Environmental Agreements: Politics, Law and Economics, 21(1), 25–41. https://doi.org/10.1007/s10784-021-09529-4
  54. Soberón, M., Sánchez-Chaparro, T., Smith, A., et al. (2022). Exploring the possibilities for deliberately cultivating more effective ecologies of intermediation. Environmental Innovation and Societal Transitions, 44, 125–144. https://doi.org/10.1016/j.eist.2022.06.003
  55. Sudha, S. (2020). Corporate environmental performance–financial performance relationship in India using eco-efficiency metrics. Management of Environmental Quality: An International Journal, 31(6), 1497–1514. https://doi.org/10.1108/meq-01-2020-0011
  56. Syahrir, R., Wall, F., & Diallo, P. (2021). Coping with sudden mine closure: The importance of resilient communities and good governance. The Extractive Industries and Society, 8(4), 101009. https://doi.org/10.1016/j.exis.2021.101009
  57. Syahza, A., & Irianti, M. (2021). Formulation of control strategy on the environmental impact potential as a result of the development of palm oil plantation. Journal of Science and Technology Policy Management, 12(1), 106–116. https://doi.org/10.1108/jstpm-06-2019-0059
  58. Tien, N. H., Anh, D. B. H., & Ngoc, N. M. (2019). Corporate financial performance due to sustainable development in Vietnam. Corporate Social Responsibility and Environmental Management, 27(2), 694–705. https://doi.org/10.1002/csr.1836
  59. Widiati, W., Mulyadi, A., Syahza, A., & Mubarak. (2020). Analysis of Plantation Management Achievement Based on Sustainable Development. International Journal of Sustainable Development and Planning, 15(4), 575–584. https://doi.org/10.18280/ijsdp.150418
  60. Yusanto, Y. (2020). Ragam Pendekatan Penelitian Kualitatif. JOURNAL OF SCIENTIFIC COMMUNICATION (JSC), 1(1). https://doi.org/10.31506/jsc.v1i1.7764
  61. Yuslaini, N., Sumadinata, R. W. S., Fedryansyah, M., et al. (2023). Sustainable investment strategies in the palm oil industry in Indonesia. Journal of Infrastructure, Policy and Development, 7(3). doi: 10.24294/jipd.v7i3.2288
  62. Yuslaini, N., Suwaryo, U., Deliarnoor, N. A., & Sri Kartini, D. (2023). Palm oil industry and investment development in Dumai City, Indonesia: A focus on local economy development and sustainability. Cogent Social Sciences, 9(1). https://doi.org/10.1080/23311886.2023.2235780
  63. Yusliani, N., Suwaryo, U., Deliarnoor, N. A., & Kartini, D. S. (2022). Colaborative Governance in Increasing Foreign Investment in Dumai City, Riau Province, Indonesia. Proceedings of the International Conference on Sustainable Environment, Agriculture and Tourism (ICOSEAT 2022). https://doi.org/10.2991/978-94-6463-086-2_124


DOI: https://doi.org/10.24294/jipd.v8i5.3181

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Rahyunir Rauf, Nina Yuslaini, Ranggi Ade Febrian, Sri Maulidiah

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.