Integration of global standards into the independent smallholders' Fresh Fruit Bunch (FFB) supply chain

Authors

  • Heni Martanila Udayana University, Denpasar, Indonesia
  • I Nyoman Gede Ustriyana Udayana University, Denpasar, Indonesia
  • Putu Udayani Wijayanti Udayana University, Denpasar, Indonesia

Keywords:

supply chain, fresh fruit bunches, independent oil palm, global standards, traceability

Abstract

The fresh fruit bunch (FFB) supply chain in Seruyan Regency, Indonesia is complex and dynamic, yet it has not fully met global standards, particularly in traceability and sustainability. This poses a challenge as compliance with international standards is essential for accessing global markets that increasingly prioritize sustainability and transparency. This study aims to: (1) identify the FFB supply chain of independent smallholders; (2) analyze its conformity with global standards; and (3) assess the potential integration of global standards into the supply chain. Using a qualitative approach, the research was conducted in Seruyan Regency, Central Kalimantan, Indonesia. Findings reveal that the FFB supply chain among independent smallholders is highly varied, with key challenges including inconsistent FFB quality, lack of traceability systems, incomplete data on supply chain actors, and a high number of uncertified smallholders. As a result, the current system does not fully comply with global standards such as those of the Roundtable on Sustainable Palm Oil (RSPO). Jurisdictional Certification (JC) emerges as a promising approach to support the integration of global standards across the region. To achieve this, the Seruyan Government must strengthen JC institutions, assess infrastructure needs, and design appropriate strategies to improve traceability and sustainability in the FFB supply chain.

References

BPS. (2023). Hasil Pencacahan Lengkap Sensus Pertanian 2023 Kabupaten Seruyan.

Brandi, C. (2021). The Interaction of Private and Public Governance: The Case of Sustainability Standards for Palm Oil. European Journal of Development Research, 33(6), 1574–1595. https://doi.org/10.1057/s41287-020-00306-8

CDP, & Proforest. (2023). Sharing Responsibilities and Success Companies Collaborate to Support Palm Oil Landscape.

Fiatno, A., Yusmita, Y., Nanda, Irfani, A., & Putra, Y. S. (2021). Analisis Supply Chain Menggunakan Performance of Activity dan Economic Order Quantity (Studi Kasus di PT. Johan Sentosa, PKS. Bangkinang).

Guritno, A. D., & Harsasi, M. (2014). Manajemen Rantai Pasokan. Universitas Terbuka.

Jensen, P. D., Whicker, L., & Deutz, P. (2016). Sustainable Palm Oil Supply Chain: Complexity, Custody and Contention. In Hull University Business Scholl.

Pacheco, P., Gnych, S., Dermawan, A., Komarudin, H., & Okarda, B. (2017). The Palm Oil Global Value Chain: Implications for Economic Growth and Social and Environmental Sustainability. In The palm oil global value chain: Implications for economic growth and social and environmental sustainability. Center for International Forestry Research (CIFOR). https://doi.org/10.17528/cifor/006405

Padmanaba, M., Sloan, S., Watts, J. D., Irawan, S., Lee, J. S. H., Pasaribu, K. N., Wiratama, C. G. W., Watson, E., & Utami, N. P. (2023). Jurisdictional approaches to High Conservation Value area designation using regulatory instruments: an Indonesian pilot project. Frontiers in Environmental Science, 11. https://doi.org/10.3389/fenvs.2023.1226070

Pareira, S. P. (2023). Mencapai Keterlacakan Minyak Sawit Indonesia yang Menyeluruh Melalui Harmonisasi ISPO-RSPO.

RSPO. (2019). Standar Pekebun Swadaya RSPO Untuk Produksi Minyak Sawit Lestari.

Seymour, F. J., Aurora, L., & Arif, J. (2020). The Jurisdictional Approach in Indonesia: Incentives, Actions, and Facilitating Connections. Frontiers in Forests and Global Change, 3. https://doi.org/10.3389/ffgc.2020.503326

Voge, A.-K., & Hutz-Adams, F. (2014). Minyak Kelapa Sawit Berkelanjutan - Tuntutan atau Realitas? www.vemission.org

Watts, J. D., Pasaribu, K., Irawan, S., Tacconi, L., Martanila, H., Wiratama, C. G. W., Musthofa, F. K., Sugiarto, B. S., & Manvi, U. P. (2021). Challenges faced by smallholders in achieving sustainable palm oil certification in Indonesia. World Development, 146. https://doi.org/10.1016/j.worlddev.2021.

Published

2025-08-15

How to Cite

Martanila, H., Ustriyana, I. N. G., & Wijayanti, P. U. (2025). Integration of global standards into the independent smallholders’ Fresh Fruit Bunch (FFB) supply chain. International Journal of Economic Perspectives, 19(8), 62–73. Retrieved from http://ijeponline.org/index.php/journal/article/view/1130

Issue

Vol. 19 No. 8 (2025)

Section

Peer Review Articles
Copyright & Licensing

Copyright (c) 2025 Heni Martanila, I Nyoman Gede Ustriyana, Putu Udayani Wijayanti

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Allows users to: distribute and copy the article; create extracts, abstracts, and other revised versions, adaptations or derivative works of or from an article (such as a translation); include in a collective work (such as an anthology); and text or data mine the article. These uses are permitted even for commercial purposes, provided the user: gives appropriate credit to the author(s) (with a link to the formal publication through the relevant URL ID); includes a link to the license; indicates if changes were made; and does not represent the author(s) as endorsing the adaptation of the article or modify the article in such a way as to damage the authors' honor or reputation. CC BY