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.
Author: Dina Harsono, M.
Achmad Chozin, Anas M. Fauzi
Journal Code: jpmanajemengg120026
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