This article qualitatively examines the governance of independent palm oil mills in Indonesia, focusing on the issue of supply chain integrity from a sustainability perspective. The research aims to analyze how regulations and governance practices can ensure legality, traceability, and social and environmental sustainability in the operations of palm oil mills that do not own their own plantations. The method used is a literature review, examining reputable scientific articles, the RSPO standard, the ISPO 2025 framework, and Indonesian government regulations related to plantation governance and the palm oil trading system. The study reveals three main findings. First, independent mills have the potential to improve farmer welfare through broader market access and distribution efficiency, especially for smallholders. Second, weak oversight can lead to the risk of supply chain ambiguity, reduced traceability, and potential legal and sustainability violations. Third, existing regulations remain fragmented and therefore not optimally integrated. This study concludes that the most appropriate policy approach is a risk-based and phased licensing regime that integrates digital systems, supplier verification, and sustainable certification to strengthen the governance of the Indonesian palm oil industry.
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