Open AccessAnalysis of the implementation of Indonesian Sustainable Palm Oil-ISPO Certification at farmer level in West Pasaman Regency
Author(s) -
Hasnah Hasnah,
Rika Hariance,
Muhammad Hendri
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/741/1/012072
Subject(s) - certification , business , palm oil , indonesian , agricultural science , agricultural economics , environmental economics , marketing , economics , environmental science , linguistics , philosophy , management
As consumer demand for sustainable palm oil increases, the Indonesian government responds by issuing the Indonesian Sustainable Palm Oil [ISPO] Guidelines, which since 2015 have become Indonesia’s Sustainable Palm Oil Certification System. Currently, only 33% of the total oil palm area obtain ISPO certificates predominantly from private companies. As most oil palm plantations are smallholders owned, they must be prepared to meet this certification to enable Indonesia’s palm oil industry to maintain its market share in the world market. However, ISPO certification has not been known at the farmer level widely. This research aims to analyze the effect of farmers’ knowledge on the application of ISPO principles. The study employed a survey method involving 57 oil palm farmers. Primary data were collected using questionnaires and analyzed with the structural equation modeling method [SEM]. The results reveal that farmer knowledge on benefit and risk variables is in the moderate category, while farmers’ perception of ISPO simplicity is low. In applying ISPO principles, farmers have a high score on land legality and farm management, while environmental management and sustainable business are low. The estimation results obtained that farmers’ level of knowledge does not affect the application level of ISPO principles.