Towards a Framework for Sustainable Development Planning in the Indonesian Natural Rubber Industry Supply Network

An approach for the formulation of sustainable replanting policies in the Indonesian natural rubber industry

“…As a result, planners make compromises across the sustainability dimensions when making strategic decisions. For example, in the natural rubber industry, a three way trade-off between customers' needs for a steady flow of rubber, an industry need to improve its environmental sustainability and rubber plantation owners' needs to maintain their financial sustainability are required in designing replanting programmes (Sitepu et al, 2016). To address this issue, many studies have investigated and proposed trade-off models.…”

“…In the third stage, the focus of the research was on the evaluation of the tool by applying it using real world data from North Sumatera Province. This stage began by postulating replanting quota scenarios and assessing their sustainability impacts using a simulation model that is reported elsewhere (Sitepu et al, 2016). The sustainability impacts of the alternative replanting allocation quotas were translated into composite indices.…”

“… Bellman's contribution function, is used to generate a value, Isust.impact, representing the sustainability impact, for each state, y, at a given stage, x. In this case, this value is generated by the composite indicators method (see Figure 3) based on values from simulation model (Sitepu et al, 2016).  The Transformation function is used to define an optimal value for each stage.…”

“…Indonesia has the world's largest rubber plantation area and produces around 25% of global natural rubber supplies. Its natural rubber supply network includes a range of players including rubber plantation farmers, latex suppliers and primary processors who convert latex into crumb rubber, rubber smoke sheet and highly concentrated latex (Sitepu et al, 2016). These players are geographically dispersed across Indonesia's territory.…”

Financial analysis of dipterocarp log production and rubber production in the forest and land rehabilitation program of Sekolaq Muliaq, West Kutai District, Indonesia

“…Economic exploitation of natural forest resources, the conversion of forest into cultivated land, and water pollution arising from clearing of forest canopies lead to long-term environmental problems. Moreover, such land utilisation practices are often achieved at the expense of a labour force subject to poor working conditions, low wages and human rights violations (Sitepu et al 2016). These are problems of major significance that need careful resolution.…”