The oil palm independent smallholder (farmer) is one of the important actors in maintaining the continuity of the production cycle in the oil palm agro-industry supply chain in Indonesia. Various fundamental problems faced by the independent smallholder are related to land legality as well as their limited ability to manage good agricultural practices, access funds and information on current prices, and use of quality and agricultural production facilities. The institutional strengthening of the independent smallholder requires attention and support from government and other business actors in the supply chain of the oil palm agro-industry. This study aims to obtain a model of institutional strengthening through the application of the enrich seven steps of soft system methodology. The assumptions that must be fulfilled in strengthening this institution were described. The institutional strengthening model was developed in three stages, i.e., the establishment of smallholder corporations, the establishment of independent cooperatives, and the revitalization of the Indonesian oil palm independent smallholder association. Various individual strengthening actors were investigated and then integrated. The suggested institutional strengthening model involved cooperatives, smallholder farmers groups, and the oil palm mill, supported by regulatory, financial, and input provider agencies with a mutual partnership program.

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Supply chain sustainability assessment is key to maintaining and improving the performance of agroindustry supply chain, particularly in agroindustry sustainable development. Assessment of the agroindustry supply chain performance is a complex and dynamic process. Hence, there is a need for an adaptive fuzzy multi-criteria sustainability assessment model as an alternative method for analysis and improvement. This study aims to design an adaptive fuzzy multi-criteria sustainability assessment and improvement model of the sugarcane agroindustry supply chain. In this study, (1) fuzzy inference system (FIS) was developed to assess the performance of sustainability dimensions. This study proposed 24 indicators of 4 dimensions, namely, economic, social, environment, and resource. (2) Adaptive neuro fuzzy inference system (ANFIS) was designed for aggregating the overall supply chain sustainability performance. (3) The proposed fuzzy multi-criteria assessment model was compared with the common multidimensional scaling (MDS) and linear models. This study proved that the proposed synthesis of the FIS and ANFIS models was powerful and adaptive for evaluating supply chain sustainability and providing accurate results. (4) The strategy to improve sustainability performance was developed using the cosine amplitude method (CAM). The proposed model determined that the overall supply chain sustainability value was 68.58%, which is almost sustainable. Several strategies have been suggested to improve sustainability performance, including maintaining sugarcane supply by strengthening the partnership program and improving the mill's overall recovery, followed by factory revitalization or new factory investment.

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