Outcomes, impacts, and values of cajuput (Melaleuca cajuputi) oil business model in Perum Perhutani

Abstract

Forests are embedded in human life because they have three functions, namely ecological, social, and economic. One of the companies in Indonesia with the authority and capacity to manage the balance of multi-product utilization in forests is Perum Perhutani. Cajuput (Melaleuca cajuputi) oil is one of Perum Perhutani’s multi-product businesses. Value, outcomes, and impact are the key concepts in the business model literature. This research aims to evaluate the activity system of the cajuput oil business model at Perum Perhutani. In doing this, we use the activity systems perspective method to build a framework that blends a value-based perspective of business models with an analysis of related activities and incorporates perspectives on outcomes and impact. The results of Perum Perhutani’s cajuput oil business model activities have positive value for several partners such as forest village communities, farmer cooperatives, cajuput oil factories (packaged products), Palawi Limited corporation (a subsidiary of Perhutani), and consumers. This research shows that Perum Perhutani’s cajuput oil business activities provide social, economic, and environmental impacts, such as increasing public awareness of the benefits of forests’ sustainable land use and strengthening the mindset that cajuput oil products are socially, economically, and environmentally beneficial.