Achievement of Indonesian Sustainable Palm Oil Standards of Palm Oil Plantation Management in East Borneo Indonesia

Abstract

There has been a strong opinion toward the industry of palm oil plantation in Indonesia, indicating that this industry has caused the destruction of environment in Indonesia. One effort that has been done so far by the Indonesian government to develop this industry continuously is by creating the continuous standard called Indonesia Sustainable Palm Oil (ISPO) which has the characteristic of mandatory. This research aimed to know the capability of palm oil plantation companies in the research areas in fulfilling the standards of Indonesia Sustainable Palm Oil (ISPO). The evaluation of companies’ capability in achieving ISPO standards was conducted by using audit method to identify the continuous status in the existing condition and condition in which the situation change was needed, and continuous status were evaluated using index analysis and method of Multi Dimensional Scaling (MDS) respectively. The identification of key factors was performed using Rap-Palma Ornidasi, need analysis of stakeholders and prospective analysis. The results showed that the plantation companies’ capability in the research areas achieved 87% in fulfilling the standards of ISPO, and this capability can be increased until it reaches 100% by increasing the efforts to fulfill the principles, criteria, and indicators that are still inappropriate with ISPO requirements.

Keywords: Palm Oil, ISPO, Plantation Company, Continuous Management.