Accelerating Certification of Oil Palm Smallholders through Institutionalization of Various Incentives

Authors

Lukas Rumboko Wibowo, Research Center for Population, National Research and Innovation Agency (BRIN), Jakarta, IndonesiaFollow
Erdi Erdi, Faculty of Social and Political Science at Tanjungpura University, Pontianak, IndonesiaFollow
Sakti Hutabarat, Department of Agribusiness, Faculty of Agriculture, University of Riau, Riau, IndonesiaFollow
Fitri Nur Nurfatriani, Directorate of Environment, Maritime, Natural Resources and Nuclear Policy-National Research and Innovation Agency (BRIN), Jakarta, IndonesiaFollow
Marcellinus Utomo, Research Center for Society and Culture, National Research and Innovation Agency (BRIN), Jakarta, IndonesiaFollow
Iman Kasiman Nawireja, Department of Communication and Community Development Sciences, Faculty of Human Ecology, IPB University, Bogor, IndonesiaFollow
Eusebius Pantja Pramudya, Institute of Social and Economic Research, Depok, IndonesiaFollow
Dewi Ratna Kurniasari, Research Center for Population, National Research and Innovation Agency (BRIN), Jakarta, IndonesiaFollow
Eko Cahyono, Department of Communication and Community Development Sciences, Faculty of Human Ecology, IPB University, Bogor, IndonesiaFollow
Rahman Kurniadi, Center for Implementation of Environmental and Forestry Instrument Standards in Ciamis, Ciamis, West Java, IndonesiaFollow
Andri Santosa, FKKM-Indonesia Communication Forum on Community Forestry, Bogor, IndonesiaFollow
Zainal Fuad, Indonesian Survey Institute, Jakarta, IndonesiaFollow
Aria Atyanto Satwiko, Institute of Social and Economic Research, Depok, IndonesiaFollow

DOI

10.24259/fs.v7i2.24679

Abstract

Sustainable palm oil certification has become a global demand, particularly in the market. However, the implementation of both Roundtable of Sustainable Palm Oli (RSPO) and Indonesian Sustainable Palm Oil (ISPO) certification schemes is relatively slow. This study aims to analyze to what extent incentives can accelerate sustainable palm oil certification, from what sources those incentives can be arranged, and types of incentives are appropriate for palm oil smallholders. The research uses quantitative and qualitative methods based on literature reviews, in-depth interviews with key stakeholders, and a survey of 455 farmers in two Indonesian provinces (Riau and West Kalimantan). Based on quantitative analysis, the reasons behind more progressive certification achievements in Riau remain unrevealed while in West Kalimantan, Fresh Fruit Bunches (FFB) price, easiness to obtaining loans with low interest, and easiness of selling FFB have a significant influence on accelerating certification. Using a qualitative approach, smallholders show their expectation of having incentives. In Riau, incentives expected are higher FFB prices and a simpler procedure to get the Environmental Management Statement (SPPL) document. In West Kalimantan, higher FFB prices and availability of low interest loans are expected to become incentives. These incentives can be mobilized from intergovernmental fiscal transfer mechanisms such as revenue-sharing mechanisms, export levies, and environmental funds. Smallholders also expect clarity of incentives generated from ISPO certification, particularly in price and market access, which requires the government’s initiative to develop synergy with various stakeholders. To be practical, incentives were not only for smallholders but also for the government officials at the province, district, and village levels, as the position of the local government is very important in preparing, encouraging, and mobilizing farmers, as well as in strengthening institutions for improving palm oil governance. In the implementation of RSPO certification, the collaboration between the Indonesian government (through the Ministry of Cooperatives and Small and Medium Enterprises) and the RSPO becomes clear evidence of central government support. At the sub-national level, the Riau and West Kalimantan Provinces have developed the Regional Action Plans (RAD) for sustainable palm oil as a policy commitment to accelerate both RSPO and ISPO certification.

Recommended Citation

Wibowo, Lukas Rumboko; Erdi, Erdi; Hutabarat, Sakti; Nurfatriani, Fitri Nur; Utomo, Marcellinus; Nawireja, Iman Kasiman; Pramudya, Eusebius Pantja; Kurniasari, Dewi Ratna; Cahyono, Eko; Kurniadi, Rahman; Santosa, Andri; Fuad, Zainal; and Satwiko, Aria Atyanto (2023) "Accelerating Certification of Oil Palm Smallholders through Institutionalization of Various Incentives," Forest and Society: Vol. 7: Iss. 2, Article 8.
DOI: 10.24259/fs.v7i2.24679
Available at: https://scholarhub.unhas.ac.id/fs/vol7/iss2/8

Pages

263-294

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

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