Government Policies and Their Impact on Palm Oil Agribusiness

Government Policies and Their Impact on Palm Oil Agribusiness

Authors

  • Susan Novrini Agribusiness Study Program, Faculty of Agriculture, Universitas Islam Sumatera Utara
  • Isnirobit Nasution Agribusiness Study Program, Faculty of Agriculture, Universitas Islam Sumatera Utara
  • Muhamad Nurali Agribusiness Study Program, Institut Teknologi Sawit Indonesia
  • Aldi Pratama Agribusiness Study Program, Institut Teknologi Sawit Indonesia
  • Aldias Michael Oksa Agribusiness Study Program, Institut Teknologi Sawit Indonesia
  • Riski Suryanda Limbong Agribusiness Study Program, Institut Teknologi Sawit Indonesia

DOI:

https://doi.org/10.55299/ijoss.v2i1.21

Keywords:

Government policy, palm oil agribusiness, impact, sustainability, ISPO, literature study

Abstract

This study aims to analyze government policies and their impacts on palm oil agribusiness in Indonesia. Palm oil is a strategic commodity that plays an important role in the country's economy, but it also faces various challenges related to environmental, social, and economic aspects. This study uses literature study methods, conceptual analysis, and documentation to explore government policies that affect this sector, as well as their impacts on the sustainability and competitiveness of palm oil agribusiness. The results of the study show that policies involving aspects of regulation, licensing, sustainability certification, and land management have significant impacts, both positive and negative. Policies that support the sustainability of palm oil production, such as the implementation of ISPO (Indonesian Sustainable Palm Oil) and a moratorium on land expansion, contribute to improving the image and competitiveness of the industry. However, inconsistent policy implementation and lack of supervision often hinder the achievement of sustainability goals and invite criticism from various parties, both domestic and international. In addition, policies related to taxes, trade, and economic incentives also affect market dynamics and profits for palm oil agribusiness actors. This study suggests the need for improvements to government policies that are more inclusive and based on sustainability principles to support the growth of a more environmentally friendly and sustainable palm oil agribusiness.

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References

GAPKI. (2022). Laporan Tahunan GAPKI 2022. Asosiasi Pengusaha Kelapa Sawit Indonesia. https://gapki.id/news/2023/01/25/kinerja-industri-minyak-sawit-2022/

Kementerian Pertanian. (2020). Strategi Pengembangan Kelapa Sawit Berkelanjutan di Indonesia. Jakarta: Kementerian Pertanian Republik Indonesia. https://ppid.pertanian.go.id/doc/1/Draft%20Renstra%202020-2024%20edited%20BAPPENAS%20(Final).pdf

Rist, L., Feintrenie, L., & Levang, P. (2010). The Livelihood Impacts of Oil Palm: Smallholders in Indonesia. Biodiversity and Conservation, 19, 1009-1024. http://dx.doi.org/10.1007/s10531-010-9815-z

Putri, E. I. K., Dharmawan, A. H., Hospes, O., Yulian, B. E., Amalia, R., Mardiyaningsih, D. I., Kinseng, R. A., Tonny, F., Pramudya, E. P., Rahmadian, F., & Suradiredja, D. Y. (2022). The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia. Sustainability, 14(3), 1820. https://doi.org/10.3390/su14031820

Inpres No 8 Tahun 2018 Tentang Moratorium Lahan Sawit. https://www.bpdp.or.id/inpres-no-8-tahun-2018-tentang-moratorium-lahan-sawit

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Published

2025-02-18

How to Cite

Novrini, S., Nasution, I., Nurali, M., Pratama, A., Oksa, A. M., & Limbong, R. S. (2025). Government Policies and Their Impact on Palm Oil Agribusiness. International Journal of Natural Science Studies and Development (IJOSS), 2(1), 141–147. https://doi.org/10.55299/ijoss.v2i1.21

Issue

Section

Literature Reviews
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