The conceptual model of Indonesian palm oil supply chain based on blockchain

Abstract

Abstract Indonesia is the world’s largest producer and consumer of palm oil. However, the palm oil supply chain faces numerous challenges related to actors, traceability, transparency, and sustainability. To address these issues, a conceptual model for a blockchain-based palm oil supply chain in Indonesia is proposed. The model aims to leverage the decentralized and immutable nature of blockchain technology. It incorporates components such as smart contracts, distributed ledgers, and data sharing mechanisms to enhance traceability, transparency, and sustainability in the palm oil supply chain. The research utilized the SSM (Soft System Methodology) and CATWOE (Customer, Actor, Transformation, Worldview, Owner, Environment) methodologies. The actors involved in the palm oil supply chain include smallholders, plantation companies, third-party suppliers, middlemen, traders, palm oil mills, refineries, distributors, retailers, and consumers. The blockchain conceptual model is structured based on a sustainable supply chain model that considers economic, social, and environmental aspects. Blockchain transactions regulate the process of supply chain actors, while stakeholders such as the government, financial institutions, palm oil research organizations, NGOs, and consumers are involved. The blockchain-based supply chain model is expected to address the key issues of the palm oil supply chain, aiming for a sustainable supply chain system. By implementing this model, it is anticipated that the palm oil industry can achieve greater accountability, transparency, and environmental sustainability.