Material Flow Cost Accounting in Palm Oil: Promoting Transparency in the Use of Materials and Appropriate Scenario in Resource Saving and Waste Reduction

Abstract

The sustainability aspect of the palm oil business strategy is a significant part of dealing with changes in the future. The rest of the processed products that have not been handled perfectly is a form of material loss that reduces income and environmental sustainability. Even though the company has reported and compiled its responsibilities, the actual productivity of the company is much lower because the amount of hidden waste has not been fully considered. This research involves companies introducing material flow cost accounting in tracing and calculating physical resources and financing. This method helps companies to determine the number of negative and positive products as a basis for evaluation for saving resources and reducing environmental impacts through reducing oil losses and increasing yields. This effort will become a competitive advantage and encourage the ability of business actors to increase revenue and reduce waste. Scenarios of improving the quality of fresh fruit bunches, optimizing the sterilization process, and increasing the amount of pulp are adaptive choices in terms of availability and resource capacity. Dissemination of efforts and successes in improving resource efficiency to stakeholders is vital to increasing the value and sustainability of the palm oil business.