Explaining the “Certification Gap” for Different Types of Oil Palm Smallholders in Riau Province, Indonesia

Hutabarat, Sakti; Slingerland, M.A.; Dries, Liesbeth

doi:10.1177/1070496519854505

Cited by 32 publications

(14 citation statements)

References 47 publications

(66 reference statements)

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“…In fact, not all oil palm farmers can meet certification requirements. Smallholders who are already RSPO certified can meet certification requirements of up to 70%, but non-certified smallholders have the highest gap between RSPO requirements and field practice [23]. Based on research conducted by Rietberg and Slingerland, there are 56 audit findings in 10 recertification reports for independent farmers [24].…”

Section: Resultsmentioning

confidence: 99%

“…Based on research conducted by Rietberg and Slingerland, there are 56 audit findings in 10 recertification reports for independent farmers [24]. The biggest challenge of the RSPO certification requirements for palm oil smallholders is Principle 2 (regulation and law), Principle 4 (conservation and environment) and Principle 6 (community and employee) [23]. Given the limited knowledge of the certification requirements, assistance is necessary for oil palm farmers.…”

Section: Resultsmentioning

confidence: 99%

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Social intervention in improving smallholders welfare in realizing eco-friendly palm oil plantations

2020

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The Indonesian government continues to strive to increase the production, productivity, and quality of oil palm. Several studies on the welfare impact have shown that some smallholders benefit greatly in terms of income. Meanwhile, there are challenges to improve the welfare of smallholders, such as financial and knowledge barriers. Therefore, this article aims to identify social interventions’ contribution to improving farmer welfare and realizing environmentally friendly oil palm plantations. Social intervention can be interpreted as an effort to help in the form of planned changes to individuals, groups, and communities, which can come from government, corporate, third parties, communities, and individuals. This article contributes to define and gather social intervention perspective in improving smallholder welfare. The study employs a method approach combining literature review and descriptive analysis. These social intervention approaches, ideally embedded in a community strategy developed by the stakeholders in palm oil practice, have the potential to improving smallholder’s welfare in realizing eco-friendly palm oil plantations. To complement previous researches, this research is important because it is specific to enhance smallholder welfare through social intervention approach. Social intervention can be a form of law intervention, financial scheme and support, community programs, and corporate social responsibility (CSR) programs. Through that can help palm oil farmers, especially smallholders, to increase productivity while paying attention to environmental sustainability.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Social intervention in improving smallholders welfare in realizing eco-friendly palm oil plantations

2020

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“…Cappucci (2018) describes this as a “valley” of lower returns where portfolios first absorb the costs of sustainability integration before the promised benefits materialize. In the case of palm oil, growers are particularly encumbered by such additional financial burdens such as a membership fee and various administrative costs arising from monitoring and reporting (Brandi et al, 2015; Hutabarat, Slingerland, & Dries, 2019). However, notwithstanding the RSPO standard, certified companies continue to be price‐takers in a competitive market.…”

Section: Discussionmentioning

confidence: 99%

Sustainability stewardship: Does roundtable on sustainable palm oil certification create shareholder value?

Tey

Brindal

2020

Corp Soc Responsibility Env

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The adoption of sustainability standards is often viewed as a profitability conundrum by palm oil firms and their shareholders. This study examines whether, considering the inherent risk, the Roundtable on Sustainable Palm Oil (RSPO) sustainability initiative creates shareholder value. Based on the panel information of plantation firms listed on the Indonesia and Kuala Lumpur Stock Exchanges, RSPO‐certified firms earned mixed risk‐adjusted performance results relative to non‐RSPO and total palm oil portfolios. They also demonstrated a limited probability for upside growth. Additionally, it is possible that institutionalized sustainability standards do not address all the environmental, social and governance pillars that should constitute sustainable investing. Consequently, business operators and investors seeking improved performance should focus on the fundamentals whilst incorporating sustainability standards.

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“…Independent smallholders are the focus of the studies because they are facing challenges in adopting the certification. The results showed that smallholders generally lack the knowledge, skill, financial capabilities and resources to implement the certification on their own [45,47,50].…”

Section: Socio-economic Componentmentioning

confidence: 99%

Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review

et al. 2021

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Sustainability certification schemes were introduced to the palm oil industry as a response to address the negative environmental and social impacts associated with the development of this industry. The first certification scheme for palm oil, the Roundtable of Sustainable Palm Oil (RSPO), was established in 2004, followed by other non-governmental initiatives to ensure the sustainable production of palm oil. Indonesia and Malaysia, the two largest palm oil producers in the world, established Indonesia Sustainable Palm Oil (ISPO) and Malaysia Sustainable Palm Oil (MSPO) in 2011 and 2015, respectively. This article aims to analyze the existing literature related to studies on the RSPO, MSPO and ISPO on the basis of articles identified from the SCOPUS (scopus.com) and Web of Science (clavirate.com) databases. Results showed that research on the RSPO has been widely conducted compared with that on MSPO and ISPO. Thus, further research on MSPO and ISPO is needed to understand the dynamics of the implementation of sustainability certification. This article also provides an insight on how sustainable certification in the palm oil industry, particularly MSPO, could contribute to achieving the Sustainable Development Goals (SDGs).

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Explaining the “Certification Gap” for Different Types of Oil Palm Smallholders in Riau Province, Indonesia

Cited by 32 publications

References 47 publications

Social intervention in improving smallholders welfare in realizing eco-friendly palm oil plantations

Social intervention in improving smallholders welfare in realizing eco-friendly palm oil plantations

Sustainability stewardship: Does roundtable on sustainable palm oil certification create shareholder value?

Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review

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