Analysis of Optimal Policy Option for Sustainable Palm Oil Plantation Development

Abstract

West Kotawaringin Regency, Central Kalimantan Province, Indonesia as a development center of palm oil plantations requires policies that support sustainability. Thus, the aim of this research is to determine the optimal policy option that supports business management of sustainable palm oil plantations. This research uses Mixed Multiplier analysis that derived from Social Accounting Matrix (SAM) model which is combined with Analytic Hierarchy Process (AHP). This result indicates that optimal option for sustainable palm oil plantation management is to prioritize the environmental management program, and social responsibility that is supported by fund allocation of 1% tax addition on palm oil plantation sub-sector.

Keywords: mixed multiplier, social accounting matrix, analytic hierarchy process, policy option