Stakeholder engagement analysis of sustainability crude palm oil supply chain for biodiesel production

Palm oil commodities have strategic value for the national economy, as they are a source of foreign exchange earnings from CPO and biofuel exports. It is important to highlight that the export value originates from approximately 40 percent of the FFB production at the level of independent palm oil farmers in Indonesia. However, on the other hand, FFB production at the farmer level is still very fluctuating and poses a serious threat to the sustainability of the FFB supply for CPO production. Therefore, this research is very important to conduct with the aim of mapping the roles of various stakeholders directly involved in the supply chain system and conducting a stakeholder engagement analysis. Through this research, it is hoped to provide policy recommendations for strengthening the institutions of independent palm oil farmers so that the supply chain can become a sustainable system. This research has been conducted in East Kalimantan. Primary data collection was carried out using observational methods and surveys with semi-structured interviews and Focus Group Discussions (FGD) with all stakeholders involved in the FFB supply chain system. The stakeholder engagement analysis in this research serves as an analytical tool to assess the roles and characteristics of stakeholders within the supply chain system. The research findings indicate that the existing conditions of the supply chain system, based on the tracing of involved stakeholders, exhibit similarities in the supply chain system, as well as the levels of roles and characteristics of the players within it. This study provides a comprehensive overview as initial data for further analysis to design a risk management model for uncertainty in the sustainability of the supply chain for CPO and biodiesel, which is based on the institutions of independent palm oil farmer groups.