Institutional Role of Independent Smallholders in Realizing Sustainable Palm Oil Plantation Governance

Abstract

Purpose: The palm oil sector plays an important role in the national economy. Growth in this sector can improve people's welfare and reduce poverty. The purpose of this study is to determine the role of independent smallholder institutions and their obstacles in realizing oil palm plantation governance following ISPO principles/criteria/indicators.   Theoritical Framework: This study focuses on the application of the theory of Esman and Uphoff in (Abriandi et al., 2019), mentioning several roles of farmer institutions, with indicators namely: Interorganizational Tasks, Resource Tasks, Services Tasks, and extra–organizational tasks. This study uses a mixed research method, which combines the process of a quantitative approach in data collection and a qualitative approach in analyzing descriptively.   Methods: This study focuses on the application of the theory of Esman and Uphoff in (Abriandi et al., 2019), mentioning several roles of farmer institutions, with indicators namely: Interorganizational Tasks, Resource Tasks, Services Tasks, and extra–organizational tasks. This study uses a mixed research method, which combines the process of a quantitative approach in data collection and a qualitative approach in analyzing descriptively.   Findings: Researchers finding the importance of building collaboration in strengthening ISPO regulations in the future, because Independent Smallholder Institutions play an important role in influencing the success or failure of the implementation of ISPO certification, in general, ISPO certification policies are still in demand by large companies while the majority ownership of oil palm plantations is owned by Independent Smallholders so need to encourage Independent Smallholders to play an active role in implementing ISPO certification.   Practical Implications: By uncovering the obstacles faced by independent smallholders and assessing the effectiveness of institutions in the ISPO certification process, the research provides actionable insights for policymakers and stakeholders. The study's emphasis on developing responsive plans and strengthening the independent smallholder ecosystem adds a practical dimension to the broader discourse on sustainable palm oil development. Originality/Value: This research stands out through its specific focus on independent smallholders, the nuanced examination of ISPO challenges at the grassroots level, the adoption of a comprehensive institutional concept, the significance of the chosen geographical context, the integration of multi-disciplinary insights, and the exploration of readiness and conventional practices. These elements collectively contribute to the novelty and originality of the study, offering a unique contribution to the existing body of knowledge on sustainable palm oil governance.