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The majority of regions in Riau Province are coastal areas and many communities live on land that is dominated by peat. Peat ecosystems have unique characteristics, as they are classified as wetland areas, while also possessing regions of terrestrial land. Poor maintenance of these ecosystems can cause a variety of issues such as forest fires, drought, flooding, biodiversity loss, increasing emissions, climate change, and social community changes. The purpose of this paper is to formulate a model of peatland utilization based on local wisdom and community welfare, in an effort to support the sustainable management of peat ecosystems in Riau Province. The main commodities of the coastal community are agriculture, coconut, rubber, oil palm, sago, coffee, cocoa, areca nut. Therefore, an understanding of the use of peatlands is needed. This is to prevent damage to the peatland ecosystem, maintain biodiversity, store carbon, produce oxygen, and manage water. Policies and strategies for managing the peat ecosystem are carried out through the development of socio-economic and community culture to realize people's welfare based on local wisdom. The management and use of peatlands have contributed to the economy, even as the main source of livelihood for coastal communities. Utilization of peatlands based on local wisdom can maintain a sustainable peat ecosystem.

Riau is an Indonesian province known for its large plantations. The plantation business makes the most significant contribution to the fiscal revenues of the province. This paper aims to innovate rural economy through the sustainable development of superior commodities in the plantation sub-sector of agriculture. Specifically, multi-criteria analysis (MCA) was performed to determine the superior commodities in each locality. The results show that the superior commodities include palm oil, rubber, coconut, cocoa, coffee, and sago. The development of these commodities could boost farmers’ income with the added value of planation products. On this basis, the fair use of land for all categories was highlighted from social, economic, and environmental perspectives, and recognized as essential to the development of sustainable plantations, which are integral to rural economy and land sustainability. The proposed development strategy for superior commodities in plantation is in line with the sustainable development goals (SDGs) in Riau Province, Indonesia.

This research assessed the impact of oil palm plantation development to the acceleration of economic development of community in effort to alleviate poverty in rural areas. The research was conducted through survei with descriptive method. Information obtained through the approach of Rapid Rural Appraisal (RRA). The results obtained by oil palm plantation activities in the rural areas created a figure amounting to 3.03 of multiplier effect, especially in employment and business opportunity. In year 2003, the farmer’s welfare index of rural areas amounting to 1.72. It means the growth of the farmer’s welfare increased by 172 percent. In the period of 2003-2006, farmers' welfare index was 0.18 and the period of 2006- 2009 also experienced positive at 0.12. It means the welfare of farmers during this period increased by 12 percent.

Purpose This paper aims to present the development of palm oil sector and future challenge in Riau Province Indonesia, which includes sustainable plantation development. Design/methodology/approach This research was conducted through a survey with developmental research method. The research location is in the Province of Riau, which is the potential development of oil palm plantation. The land areas of Riau are Kampar, Rokan Hulu and Kuantan Singingi, while the coastal areas are Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. The socio-economic and environmental aspects of sustainability level of palm oil plantations were analyzed using a multi-dimensional scaling approach that was modified into a Rap-Insus-Pom. Findings Development of palmoil plantations results in land conversion, posing potential erosio. In anticipating environmental damage, the Government of Indonesia imposes the Indonesian Sustainable Palm Oil (ISPO) policy. The results of ISPO policy show that Indonesian crude palm oil products are environmentally friendly. Originality/value This research is one of few studies that investigate the development of palm oil sector and future challenge in Riau Province, Indonesia. Riau Province still needs 13 units of palm oil mills with capacity of 60 tons per hour. Find strategies to regulate palm oil farming institutions and derivative products to enhance growth and economic development in the region and find production centers and development areas for palm oil local industries in potential regions.

Purpose The purpose of this paper is sixfold: first, to know the ability of area carrying capacity to the development of downstream oil palm industry; second, to know the potential for the development of downstream oil palm industry in efforts to improve the community through employment and business opportunities in the regions; third, to find eco-friendly institutional arrangement strategies of oil palm farming in order to spur economic growth and development; fourth, to formulate strategies for potential environmental impact as a result of institutional arrangement and development of downstream oil palm industry, both in regional and national scope; fifth, to predict the economic multiplier effect as impact of institutional arrangement and development of oil-palm-based downstream industry; and sixth, to include production centers and development areas of oil-palm-based downstream industry in potential areas. Design/methodology/approach Research location was in potential areas of oil palm plantation development, either in the form of plasma through state-owned enterprises (BUMN) and private-owned enterprises (BUMS), or in the form of self-supporting by community. The research locations were divided into two parts, namely the land area and the coastal area. The land area of Riau consisted of Kampar, Rokan Hulu and Kuantan Singingi Regency, while the coastal area of Riau consisted of Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir Regency. Both research areas had different productivity which was caused by differences in soil fertility. The required data were primary and secondary data. Findings Plantation activities have increased the mobility of goods in the villages, causing plantation activities to also open business and employment opportunities for people who are able to accept these opportunities. Since post-1998 crisis, the growth of oil palm plantation area in Riau increased sharply, namely in 1998, the area of oil palm plantations was 901,276 ha, in 2012, 1,119,798 ha and increased to 2,103,175 ha at the end of 2017. Through economic activities that produce goods and services required during the plantation process and the development, downstream industries will have backward linkages. The development of oil palm plantations in Riau has had an impact on economic activities in rural areas. The result of the research in the field is that the average income of farmers in the plantation subsector (especially oil palm) is Rp4,576,696 per month or $5,781.09 per year. The impact on investment in the estate subsector has been felt by rural communities. This condition also affects the purchasing power of the people, resulting in the increase of mobility of goods and people. During the period 2009–2016, rural communities enjoyed a high level of prosperity. During this period, the price of fresh fruit bunch at the farm level was quite profitable. On the other hand, the production of the plantation area also increased compared to the previous period. The impact of rising prices and increasing production of farmers is that the farmers’ welfare index in the countryside had a positive value of 0.43. This index showed the increase of farmers’ welfare from the previous period by 43 percent. Originality/value There are few previous studies which have comprehensively and specifically reviewed the regional economic empowerment through institutional arrangement and development of oil-palm-based downstream industry. The development of oil palm plantations aims to eliminate poverty and underdevelopment, especially in rural areas. In addition, it also pays attention to equity. In broad sense, agricultural development which is based on plantations aims to improve the welfare of the community so that there is a change in the pattern of life of the surrounding community. On the other hand, the success of plantation development that is based on oil palm agribusiness is expected to reduce income inequality between community groups and between regions.

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Business performance is one of the entrepreneurial behavior benchmarks. Small, and Medium Enterprises (SMEs) are required to have dynamic capabilities and strategies that can seize opportunities and improve the market. The aim of this paper is to analyze the effect of adaptability and entrepreneurial orientation on business performance through innovation as mediation. Based on interviews and questionnaires distributed to 115 SMEs in coastal areas. The research results show that adaptability and entrepreneurial orientation have effects on innovation. Adaptability and entrepreneurial orientation have no effects on business performance. Innovation has effects on business performance. Adaptability and entrepreneurial orientation have effects on business performance through innovation as mediation. This study enriches the current literature by providing a contribution and insights to understanding how Resources Based View (RBV) theory affects business performance and innovation on SMEs in coastal areas in Indonesia. The implications of this study on entrepreneurship orientation in SMEs will help to increase resources for innovation. This emphasizes how the RBV approach used in this research helps improve business efficiency by leveraging existing capital in microbusinesses into a source of excellence. The government is working on policies to enhance the efficiency of SMEs in Indonesia.