The Changing Landscape of Sustainability Standards in Indonesia: Potentials and Pitfalls of Making Global Value Chains More Sustainable

Abstract

This chapter investigates the changing landscape of voluntary sustainability standards in Indonesia and discusses potential trade-offs between the socio-economic and environmental dimensions of sustainable development in the context of smallholder certification in the palm oil sector. On the one hand, there is a concern that sustainability standards might weaken the socio-economic situation of smallholders by preventing them from having access to global value chains and markets that demand certification. On the other hand, whereas certification can give rise to socio-economic benefits for smallholders taking part in certification schemes, these benefits may have undesirable consequences for environmental sustainability. The chapter studies these trade-offs and discusses how the synergies between economic, environmental and social sustainability can be promoted.