Agrikultura
Vol 36, No 3 (2025): Desember, 2025

Sustainable Palm Oil (Elaeis guineensis Jacq.) Agribusiness Development in Indonesia: An Integrated Model

Suardi, Tennisya Febriyanti (Unknown)
Sulistyowati, Lies (Unknown)
Noor, Trisna Insan (Unknown)
Setiawan, Iwan (Unknown)
Nainggolan, Mai Fernando (Unknown)



Article Info

Publish Date
09 Feb 2026

Abstract

The sustainability of palm oil agribusiness was a strategic issue that connected economic, social, and environmental aspects in its management. Plantation practices and the palm oil industry contributed significantly to national economic growth and farmer welfare, but in reality, this activity was often associated with deforestation, land degradation, and social conflict. The importance of integrating various aspects of sustainability with agribusiness as a system from farmer perceptions produced priority elements that needed to be prioritized. The purpose of this study was to analyze the determinants of sustainable palm oil agribusiness development. This study was designed using a quantitative method with a survey approach. The sampling technique used proportionate stratified random sampling with a total of 249 smallholder palm oil farmers as respondents. Data processing was carried out using the Partial Least Square (PLS) analysis tool approach. The results of the study showed that the evaluation of modeling findings highlighted a significant influence of farmer rationality on the performance of the agribusiness system and sustainable palm oil agribusiness, as well as a significant influence of the performance of the palm oil agribusiness system on sustainable palm oil agribusiness. Meanwhile, in reality, the test results showed that farmer characteristics did not have a significant influence on any variable. Furthermore, the level of sustainability of palm oil agribusiness was perceived by farmers as more important in order from the social, environmental, technological, and economic dimensions. There was a need for cooperation and support from various parties to achieve and improve the sustainability of palm oil agribusiness, both from the fulfillment of input, production, handling of results, marketing, and supporting services to ensure its sustainability.

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Journal Info

Abbrev

agrikultura

Publisher

Subject

Agriculture, Biological Sciences & Forestry

Description

Jurnal Agrikultura terbit tiga kali setahun (April, Agustus dan Desember), memuat artikel hasil penelitian dan kupasan (review) orisinal hasil dari penelitian yang sebagian telah dilakukan penulis, dan komunikasi ...