Environmental Sustainability and Institutional Adaptation: Enhancing the Resilience of Independent Oil Palm Farmer

Abstract

Independent oil palm farmers are key actors in the sustainability of palm oil supply chains, particularly in peatland ecosystems that are highly vulnerable to environmental degradation and hydrological disturbance. However, limited institutional support, fluctuating market conditions, and increasing environmental pressures threaten their capacity to maintain sustainable and resilient production systems. This study investigates how environmental sustainability practices and institutional adaptation mechanisms contribute to enhancing the resilience of independent oil palm farmers in Bengkalis Regency. A quantitative survey was conducted with 150 farmers and related stakeholders, and the relationships among variables were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings indicate that sustainability practices—such as responsible land management, peat conservation, and environmentally conscious cultivation—have a significant positive effect on farmer resilience. Furthermore, institutional adaptation, including policy facilitation, cooperative-based organization, and capacity-building programs, mediates and amplifies the impact of these practices. Strengthening environmental governance frameworks and coordinated support institutions is therefore critical to achieving sustainable and resilient palm oil development. The study contributes empirical evidence for designing integrated environmental and policy interventions tailored to smallholder contexts.