Open AccessANALYSIS OF SUPPLY CHAIN MANAGEMENT AND INDUSTRIAL CLUSTER OF OIL PALM IN NORTH SUMATRA
Author(s) -
Saut H. Siahaan
Publication year - 2017
Publication title -
jurnal ekonomi and kebijakan publik/jurnal ekonomi and kebijakan publik
Language(s) - English
Resource type - Journals
eISSN - 2528-4673
pISSN - 2086-6313
DOI - 10.22212/jekp.v7i2.578
Subject(s) - business , supply chain , palm oil , distribution (mathematics) , product (mathematics) , government (linguistics) , supply chain management , textile industry , value chain , sustainability , competition (biology) , industrial organization , commerce , agricultural economics , marketing , agricultural science , economics , geography , environmental science , mathematical analysis , linguistics , ecology , mathematics , geometry , archaeology , biology , philosophy
Downstream palm oil industry development through concept application of cluster in North Sumatra province is become the hope of government to increase added value and competitiveness of product, but whether this concept can boost the competitiveness of the palm oil industry, remains a challenge. This is mainly related to the diversity of actors in the supply chain industry and competition in a global market that include environmental aspects. Therefore, industry cluster analysis from perspective of the supply chain of palm oil processing industry to be interesting. This study uses a qualitative exploratory approach, and primary data obtained by in-depth interviews of actors in the supply chain of palm oil processing industry in North Sumatra province in 2013 up to 2015. The analysis showed that smallholder plantations have a considerable contribution in supplying raw materials Fresh Fruit Bunches (FFB) for palm oil processing industry, hence the existence of smallholder plantations can not be excluded in the development of downstream palm oil industry. Furthermore, the results of this study also indicate that they need to encourage the establishment of governance structures industry palm oil supply chain, improvement strategies, distribution, and justice so that the distribution of benefits for the actors in the supply chain can be awakened. In this regard, efforts to promote sustainable plantation industry business is still very necessary, especially to preserve biodiversity and benefit all actors in the supply chain of palm oil industry.