Palm oil industry investments in local community welfare and local government intervention through sustainable practical strategies for resilient economic: environmental outcomes

Abstract

The purpose of this study is to investigate the complex relationship between the palm oil sector and its socio-economic impacts on local community well-being and ecological challenges through practical sustainable strategies in Dumai City, Indonesia. However, in practice, the palm oil sector has failed to address this issue effectively, which is influenced by suboptimal governance and including the adoption of sustainability goals itself. This research utilized an exploratory qualitative approach, aided by NVivo 12 Plus software. The study's findings indicate that, despite significant investment potential, the industry has largely failed to translate growth into tangible benefits for local populations, with stagnant economic indicators and persistent poverty issues. Ecological challenges such as environmental degradation and biodiversity loss are exacerbated by inadequate governance and unsustainable practices, which undermine long-term sustainability. The study emphasizes the importance of integrated governance strategies that foster stakeholder collaboration between government, industry, and local communities, promoting both environmentally sound practices and socio-economic development. The research provides valuable insights into the implementation of holistic policies that balance economic growth with ecological integrity and social equity, and offers practical recommendations for policymakers and industry players to develop inclusive and sustainable palm oil investment strategies. These strategies should define targeted actions, timeframes, responsible parties, and operationalization measures, ensuring that benefits reach local communities and ecosystems simultaneously. Contributes to advancing understanding of sustainable palm oil development, emphasizing the need for coordinated efforts and strategic frameworks to achieve resilient economic and environmental outcomes.