Study of sustainability status of the implementation of ISPO (Indonesian Sustainable Palm Oil) in plasma farmers oil palm plantation

Abstract

ISPO (Indonesia Sustainable Palm Oil) is a mandatory certification policy issued by the Indonesian government. ISPO is aimed at private oil palm plantation businesses and smallholder groups. Plasma farmers are farmers who partner with companies. It is appropriate for ISPO certified companies, and smallholders will be the same in implementing ISPO. This study aims to determine the role of companies in plasma farmers in implementing the ISPO principles for plasma farmers, then to find out the implementation of the ISPO principles by plasma smallholders and to analyze the sustainability status of the implementation of the ISPO principles carried out by plasma farmers. The study used the RAP-Palm method and sampling of plasma farmers in three companies in the West, East, and Central regions of Jambi Province. The results showed that companies that have received ISPO certificates have not been optimal for plasma farmers in applying the ISPO principles. Companies that partner with plasma farmers have not encouraged plasma farmers to implement the ISPO principles. At the same time, the plasma smallholders have not optimally applied the ISPO principles. The MDS analysis results showed that the plasma farmers’ sustainability status in implementing the principles is in the medium category (56,02). A new regulation is recommended that encourages companies to help empower plasma farmers in implementing ISPO principles and needs to empower the knowledge and education of smallholders in implementing the ISPO principle. As well as rewards for plasma farmers who implemented ISPO to get a premium price.

The Dynamics of The Role Oil Palm Smallholders in Implementing ISPO Certification: Looking Back to Moving Forward

“…Of the 100 articles indexed by Scopus, they can be grouped into 3 clusters which can be identified by color node each keyword. Cluster 1 is symbolized in red and includes terms related to studies with keywords Farmer [1][2][3][4][5][6], Standard [7][8][9][10], Impact [11][12][13] , Access [14], ISPO [15][16][17][18][19] it can be interpreted that the studies on the cluster referred to one and the other study keywords often intersect and tend to have links, for example research with studies on financial and benefits certification on one the articles in the study cover a lot of discussion related to the keywords impact, farmer and standards Cluster 2, which is symbolized in yellow, consists of studies that tend to lead to one keyword, namely RSPO certification [20][21][22][23][24][25][26], Cluster 3, which is symbolized in blue, consists of Oil Palm studies [27,28], Deforestation, Plantation, Biodiversity and Cluster 4 which is symbolized in green consists of MSPO certification studies, Industry, Independent Smallholder, Implementation. From the visualization of the network visualization, there is an interesting thing, namely that there is a high link to the study with the keywords of sustainable oil palm plantation certification namely ISPO, RSPO, and MSPO during the period from 2006 to 2023…”

The Sustainability of Contract Farming Model: A Case Study of an Agribusiness Company

“…The research conducted by Daryanto et al (2015) summarized the plasma core contract farming pattern enhances the economic benefits for breeders. That contract farming pattern is applied by a palm oil company in Indonesia that summarizes the plasma core contract farming simplifies the company to obtain a certificate of ISPO (Indonesia Sustainable Palm Oil) (Rosyani et al, 2021). The main farmer's motivation to conduct agribusiness is economic factor The general trading partnership pattern is also implemented by PT Nestle with coffee farmers.…”

Profit Sharing System of Oil Palm Fresh Fruit Bunches (FFB) between Plasma Farmers and Palm Oil Companies in Kalimantan Province

“…The development of farmers' oil palm plantations means managing the plantations as a corporation (estate) and not individually like cultivating other horticultural crops. The operational form is that cooperatives are managed by professionals of core companies and if farmers are members of the cooperative, they work as workers on plantations (Mazwan & Masyhuri, 2019;Rosyani et al, 2021).…”