Optimizing Public Fund to Finance Smallholder Plantations for Sustainable Palm Oil in Indonesia
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Creator 1. Ekayana Dewa
2. Supriatna Jatna
3. Utomo Suyud
Title Optimizing Public Fund to Finance Smallholder Plantations for Sustainable Palm Oil in Indonesia
Publisher Thai Society of Higher Education Institutes on Environment
Publication Year 2566
Journal Title EnvironmentAsia
Journal Vol. 16
Journal No. 1
Page no. 49-58
Keyword Palm oil, Smallholders, Public Fund, Sustainability
URL Website http://www.tshe.org/ea/index.html
Website title EnvironmentAsia
ISSN 1906-1714
Abstract Considering the significant impact, but vulnerable position occupied by the smallholderfarmers within the Indonesian palm oil industry, ensuring their access to a reliable sourceof finance is crucial to ensure the sustainability of palm oil in Indonesia. Public funds areone of the resources that can be used to provide this kind of financial support for palmsmallholders. Therefore, it is important to ensure accessibility of smallholder's farmers topublic funds. However, the government has not been able to effectively leverage availablepublic financing tools and programs in ways that generate meaningful impact to addressproductivity and environmental sustainability challenges. This study identifies major gaps inavailable public financing tools through certain common palm oil industry cases, followed bya deep analysis on the implications of the gap over institutional public financing strategies andmajor beneficiaries, particularly to address smallholder farmers. To address these challenges,this study also tries to propose three actionable solutions such as better enforcement ofland certification and use permit, maximizing ISPO as an industry sustainability standard,and developing a more consistent smallholders typology that can refocus public financingstrategies effectively to achieve Indonesia's sustainable palm oil industry goals in the long run.
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