Accelerating Certification of Oil Palm Smallholders through Institutionalization of Various Incentives

Sustainable palm oil certification has become a global demand, particularly in the market. However, the implementation of both Roundtable of Sustainable Palm Oli (RSPO) and Indonesian Sustainable Palm Oil (ISPO) certification schemes is relatively slow. This study aims to analyze to what extent incentives can accelerate sustainable palm oil certification, from what sources those incentives can be arranged, and types of incentives are appropriate for palm oil smallholders. The research uses quantitative and qualitative methods based on literature reviews, in-depth interviews with key stakeholders, and a survey of 455 farmers in two Indonesian provinces (Riau and West Kalimantan). Based on quantitative analysis, the reasons behind more progressive certification achievements in Riau remain unrevealed while in West Kalimantan, Fresh Fruit Bunches (FFB) price, easiness to obtaining loans with low interest, and easiness of selling FFB have a significant influence on accelerating certification. Using a qualitative approach, smallholders show their expectation of having incentives. In Riau, incentives expected are higher FFB prices and a simpler procedure to get the Environmental Management Statement (SPPL) document. In West Kalimantan, higher FFB prices and availability of low interest loans are expected to become incentives. These incentives can be mobilized from intergovernmental fiscal transfer mechanisms such as revenue-sharing mechanisms, export levies, and environmental funds. Smallholders also expect clarity of incentives generated from ISPO certification, particularly in price and market access, which requires the government’s initiative to develop synergy with various stakeholders. To be practical, incentives were not only for smallholders but also for the government officials at the province, district, and village levels, as the position of the local government is very important in preparing, encouraging, and mobilizing farmers, as well as in strengthening institutions for improving palm oil governance. In the implementation of RSPO certification, the collaboration between the Indonesian government (through the Ministry of Cooperatives and Small and Medium Enterprises) and the RSPO becomes clear evidence of central government support. At the sub-national level, the Riau and West Kalimantan Provinces have developed the Regional Action Plans (RAD) for sustainable palm oil as a policy commitment to accelerate both RSPO and ISPO certification

Accelerating Certification of Oil Palm Smallholders through Institutionalization of Various Incentives

Sustainable palm oil certification has become a global demand, particularly in the market. However, the implementation of both Roundtable of Sustainable Palm Oli (RSPO) and Indonesian Sustainable Palm Oil (ISPO) certification schemes is relatively slow. This study aims to analyze to what extent incentives can accelerate sustainable palm oil certification, from what sources those incentives can be arranged, and types of incentives are appropriate for palm oil smallholders. The research uses quantitative and qualitative methods based on literature reviews, in-depth interviews with key stakeholders, and a survey of 455 farmers in two Indonesian provinces (Riau and West Kalimantan). Based on quantitative analysis, the reasons behind more progressive certification achievements in Riau remain unrevealed while in West Kalimantan, Fresh Fruit Bunches (FFB) price, easiness to obtaining loans with low interest, and easiness of selling FFB have a significant influence on accelerating certification. Using a qualitative approach, smallholders show their expectation of having incentives. In Riau, incentives expected are higher FFB prices and a simpler procedure to get the Environmental Management Statement (SPPL) document. In West Kalimantan, higher FFB prices and availability of low interest loans are expected to become incentives. These incentives can be mobilized from intergovernmental fiscal transfer mechanisms such as revenue-sharing mechanisms, export levies, and environmental funds. Smallholders also expect clarity of incentives generated from ISPO certification, particularly in price and market access, which requires the government’s initiative to develop synergy with various stakeholders. To be practical, incentives were not only for smallholders but also for the government officials at the province, district, and village levels, as the position of the local government is very important in preparing, encouraging, and mobilizing farmers, as well as in strengthening institutions for improving palm oil governance. In the implementation of RSPO certification, the collaboration between the Indonesian government (through the Ministry of Cooperatives and Small and Medium Enterprises) and the RSPO becomes clear evidence of central government support. At the sub-national level, the Riau and West Kalimantan Provinces have developed the Regional Action Plans (RAD) for sustainable palm oil as a policy commitment to accelerate both RSPO and ISPO certification

Forest Policy and Legal Pluralism: A Case Study in Luwu District, Indonesia

This paper investigates how the potential of the newly enacted village forest policy to improve the welfare of local people and examines how different actors at local level perceive a legal framework suitable for improving the welfare of local people and enhancing local development. We conducted research through in-dept interviews involiving 75 respondents from different actors, such as policy makers, politician, village chief, customary chief and villagers. The research establish that forest policy on village forestry was a good option for local people to improve their welfare; however, litle understanding of the substance of the newly village forest policy of local development actors due to limited public consultation undertaken at district and village level would become a real challenges for executing the policy. The work of the policy is also depend on the extent to which the central goverment is capable of undertanding local context where multiple legal system operates

A field experiment to reduce deforestation while benefiting the livelihoods of Indonesian smallholder oil palm farmers

We will implement a randomised field experiment to test whether a new training intervention delivered to independent smallholder oil palm farmers as part of a palm oil company’s “No Deforestation, No Peat, No Exploitation” (NDPE) policy can reduce deforestation in Sumatra, Indonesia. The objective is to identify how NDPE policies can be improved to enhance: 1) their effectiveness in terms of reducing deforestation; 2) farmers’ perceptions of the fairness of NDPE policies; and 3) NDPE policies’ equity in terms of having no negative impact on, or ideally improving, farmers’ market access and prices received for palm oil production. The trial is being conducted in partnership with Musim Mas (MM), an Indonesian palm oil company. The participants will be smallholder oil palm farmers in 87 villages in Aceh Selatan and Aceh Singkil, two regencies (Kabupaten) in the Province of Aceh in Sumatra. The study consists of a common intervention offered to all villages in the sample and an experimental treatment layered on top and randomly assigned to half of the villages. The common intervention comprises a standard training package on Good Agricultural Practices (GAP) and Financial Literacy. The experimental treatment consists of training on MM’s NDPE policy with a norm-based framing. We will compare deforestation between villages that receive the baseline intervention and villages that additionally receive the experimental treatment. We will also compare perceived social norms for nature conservation and beliefs about environmentally- and socially-responsible farming behaviour between participants in treated and control villages. We expect a smaller annual reduction in forest cover, an improvement in perceived social importance of conservation, and improvement in beliefs about the importance of environmentally- and socially-responsible farming behaviour in treated villages that receive the norm-based NDPE training compared to control villages that receive the standard training package only

Analyzing residents’ preferences to ecotourism impacts using simple additive weighting: The case of Mount Rinjani National Park, Indonesia

Under the more current paradigm of protected area management, which takes a more integrated approach to conservation and development opportunities, residents are now seen as co-managers of protected areas. Through the Social Representation Theory, Rational Choice Theory, and Social Identity Theory, this study aims to identify the economic, socio-cultural, and environmental impacts of ecotourism perceived by the residents and their priorities/preferences in Mount Rinjani National Park (MNRP). This study employed the qualitative method (phase 1) and the quantitative method (phase 2). Phase 1 collected primary data through focus group discussion (FGD). The FGD was conducted with 7 participants who were chosen using judgment sampling. Data in the FGD were transcribed and analyzed with content analysis. Results of the analysis in phase 1 were utilized as the basis for analysis in phase 2. Phase 2 collected the data from a survey. Due to the homogeneity of the population, 30 respondents were chosen as the sample using purposive sampling. Data of the survey were analyzed with simple additive weighting. The results showed that the highest preference of the residents was economic impacts, followed by the social-cultural and environmental impacts. From the perspective of Social Representation Theory, it can explain how different people understand and respond to social issues in a community. From the perspective of Rational Choice Theory and Social Identity Theory, although economic impacts rank first, social interest comes first instead of individual interest. Finally, the results of this study can be used as a guide for both the national government (MNRP) and local government (the Culture and Tourism Board) regard to how residents behave towards ecotourism development.</p