Oil Palm Smallholders’ Inclusiveness Possibility in the Industry 4.0: RSPO Sustainability Certification Case in the Palm Oil Global Supply Chain

Diana Chalil, Riantri Barus, Thomson Sebayang

2018

Abstract

The palm oil industry is big, involving long supply chains with smallholders as part of the chain. In contrast with the significant increase in the smallholder plantation areas’ share, significant innovations are found in neither development of oil palm smallholders’ cultivation techniques nor marketing and management aspects. Using 320 smallholder samples’ data in 2012 and 315 in 2018 purposively selected in North Sumatra, such conditions are descriptively analysed. In particular, Roundtable Sustainable Palm Oil (RSPO) certification is chosen as the case for analysing the smallholders’ inclusiveness possibility in industry 4.0. The results show that only 10 out of 39 (25%) RSPO certification principles are possibly related to the character of industry 4.0, particularly in connection and precision aspects. On average, smallholders’ implementation scores for these principles are still low. Such a condition is significantly influenced by the smallholders’ experience, level of income and participations. Comparing the 2012 and 2018 data, all of these possible implementation scores’ increased, showing potential improvement in RSPO P&C implementation. However, with a 25% relevant P&C and low level of implementation, it can be concluded that RSPO certification is still not effective in improving smallholders’ inclusiveness in industry 4.0

Paper Citation

in Harvard Style

Chalil D., Barus R. and Sebayang T. (2018). Oil Palm Smallholders’ Inclusiveness Possibility in the Industry 4.0: RSPO Sustainability Certification Case in the Palm Oil Global Supply Chain.In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR, ISBN 978-989-758-449-7, pages 125-128. DOI: 10.5220/0010102201250128

in Bibtex Style

@conference{icosteerr18,
author={Diana Chalil and Riantri Barus and Thomson Sebayang},
title={Oil Palm Smallholders’ Inclusiveness Possibility in the Industry 4.0: RSPO Sustainability Certification Case in the Palm Oil Global Supply Chain},
booktitle={Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR,},
year={2018},
pages={125-128},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010102201250128},
isbn={978-989-758-449-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR,
TI - Oil Palm Smallholders’ Inclusiveness Possibility in the Industry 4.0: RSPO Sustainability Certification Case in the Palm Oil Global Supply Chain
SN - 978-989-758-449-7
AU - Chalil D.
AU - Barus R.
AU - Sebayang T.
PY - 2018
SP - 125
EP - 128
DO - 10.5220/0010102201250128