ANALYSIS ON INDONESIAN SUSTAINABLE PALM OIL (ISPO): A QUALITATIVE ASSESSMENT ON THE SUCCESS FACTORS FOR ISPO

ABSTRACT: ISPO (Indonesian Sustainable Palm Oil) serves as the baseline of sustainability standards for palm oil industry  and  is  expected  to  improve  the  competitive  advantage  of  Indonesian  palm  oil  industry.  ISPO was  introduced  by  the  government  in  March  2011  and  currently  most  of  plantations  are  in  process  of applying ISPO. The objective of this research is to analyze success factors affecting implementation of ISPO. Using qualitative method of in-depth interview on 20 selected experts representing actors mapped in the value chain of palm oil industry. The results depicted that; very little companies apply sustainable principles hence ISPO is needed for industrial standards, success factors affecting ISPO implementation, and necessary conditions for ISPO implementation. SWOT technique resulting 8 recommended strategies to be applied for ISPO implementation. Acknowledging ISPO applies to upstream industry (plantations and  mills)  only,  managerial  implication  for  this  research  is  the  need  to  develop  of  a  grand  master plan  for  Indonesian  palm  oil  Industry  by  developing  integrated  policies  complementing  ISPO  aiming for sustainability, growing and developing downstream industry to add value to CPO product, and for upstream industry to be developed by farmers and cooperatives while big investors to develop mills and downstream industry.
Keywords: Palm Oil, ISPO, Sustainable Certification, Success Factors, Qualitative
Author: Dina Harsono, M. Achmad Chozin, Anas M. Fauzi
Journal Code: jpmanajemengg120026

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