The Role of Farmers Readiness in the Sustainable Palm Oil Industry

Abstract

One effort currently made by the Indonesian government to ensure the sustainability of the development of the palm oil industry is to create a sustainability standard called Indonesian Sustainable Palm Oil (ISPO) in presidential regulation no 44 in 2020. The purpose of this study is to determine the value of the ability of independent coconut farmers palm oil in Indragiri Hilir to meet the Indonesian Sustainable Palm Oil (ISPO) standards and identify the problems faced in achieving these standards. Evaluation of the ability of independent smallholders to achieve ISPO standards is carried out by an audit method, the results of the assessment of all parameters set in accordance with the Principles, Criteria and Inductors. The Criteria and Indicators contained in the ISPO provisions are then assessed in percent. The audit method is carried out in a quantitative descriptive analysis of the appropriateness of ISPO principles, criteria and indicators by comparing the implementation of legality, organization and management, management and environmental monitoring implemented by independent smallholders. Readiness of ISPO application for smallholder farmers by evaluating four principles, 20 criteria and 47 indicators. Of the 47 indicators determined in the ISPO requirement for self-help patterns, as many as 58.94% of the ISPO indicators have never been implemented by independent smallholders and 42.06% of the ISPO indicators have farmers running them. From ISPO indicators that have been carried out by independent smallholders, only a small portion of independent smallholders are run.