Horizon: Indonesian Journal of Multidisciplinary
Vol. 4 No. 3 (2026): HORIZON: Indonesian Journal of Multidisciplinary

From Oil Palm Mill Ownership to Palm Oil Supply-Shed Integrity

Judijanto, Loso (Unknown)



Article Info

Publish Date
30 Jun 2026

Abstract

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.

Copyrights © 2026






Journal Info

Abbrev

hijm

Publisher

Subject

Agriculture, Biological Sciences & Forestry Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Languange, Linguistic, Communication & Media Social Sciences Other

Description

Horizon: Indonesian Journal of Multidisciplinary (HIJM) journal aims to stimulate discussions at all levels of mathematics education through disseminating significant and innovative scholarly studies that are of value to the international research communities. The journal welcomes articles focusing ...