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To grip or to slip : smallholder inclusion in sustainable palm oil certifications in Riau, Indonesia

Chandra, Adelina LU (2020) In Master Thesis Series in Environmental Studies and Sustainability Science MESM02 20201
LUCSUS (Lund University Centre for Sustainability Studies)
Abstract
Increasing global focus on sustainable palm oil (SPO) initiatives has led to discussions of smallholder integration at the bottom of the supply chain. In 2019, the Roundtable on Sustainable Palm Oil (RSPO) introduced a new standard for independent smallholders. Meanwhile, through Presidential Regulation no. 44 of 2020, the President of Indonesia recently made Indonesian Sustainable Palm Oil (ISPO) mandatory for smallholders by 2025. While both certifications aim to improve smallholder inclusion, millions of palm oil independent smallholders face difficulties in attaining certification. This study examines the barriers that these smallholders face in pursuing the regulatory process prior to certification process and how they affect... (More)
Increasing global focus on sustainable palm oil (SPO) initiatives has led to discussions of smallholder integration at the bottom of the supply chain. In 2019, the Roundtable on Sustainable Palm Oil (RSPO) introduced a new standard for independent smallholders. Meanwhile, through Presidential Regulation no. 44 of 2020, the President of Indonesia recently made Indonesian Sustainable Palm Oil (ISPO) mandatory for smallholders by 2025. While both certifications aim to improve smallholder inclusion, millions of palm oil independent smallholders face difficulties in attaining certification. This study examines the barriers that these smallholders face in pursuing the regulatory process prior to certification process and how they affect smallholder inclusion in sustainable palm oil initiatives. Through semi-structured interviews and focus group discussions, it analyses the perspectives of four independent smallholder groups pursuing RSPO, an ISPO certified independent smallholder group, and a non-certified independent smallholder community in Riau Province in Indonesia. It also assesses the perspectives of various decision-making stakeholders including certification standard-setters both RSPO and ISPO, and provincial- and local-level government. Walker’s (2012) notion of procedural justice, which includes access to information, access to facilitation and support, access to legal process, and participation in decision-making, is used to analyse the findings.

The study finds that limited access to information regarding SPO certifications, a lack of understanding of regulations concerning land, and limited financial support may hinder independent smallholders from pursuing regulatory compliance. Facilitation can help farmers in addressing these issues; however, at the local level, access to facilitation is unequal. The findings show that the inequality is influenced by three factors, namely local institutional arrangement, land status and legality, and practicalities, must thus be concerned when attempting to improve facilitation opportunity. Furthermore, the current centralised licensing system that has been adopted at the local level limits smallholders’ ability to engage with the legal process; this is mainly due to technical and practical issues that arise in navigating convoluted regulations and bureaucracies. A lengthy bureaucratic chain indicates a structural problem due to a lack of coordination among government institutions and lack of clarity in regulations. Furthermore, farmers are facing environmental challenges to differing degrees, which prevents independent smallholder groups from being able to fulfil pre-certification requirements. Thus, from a practical point of view, procedural justice required to incorporate independent smallholders into sustainable palm oil initiatives has not yet been achieved. (Less)
Abstract (Uncoded languages)
Meningkatnya fokus global terhadap inisiatif kelapa sawit berkelanjutan memantik integrasi pekebun swadaya dalam sertifikasi kelapa sawit berkelanjutan. Pada tahun 2019, Roundtable on Sustainable Palm Oil (RSPO) memperkenalkan standar baru untuk pekebun swadaya. Sementara itu, melalui Peraturan Presiden no. 44 tahun 2020, Presiden Indonesia menetapkan kewajiban sertifikasi Indonesian Sustainable Palm Oil (ISPO) bagi pekebun pada tahun 2025. Ketika kedua sertifikasi tersebut berupaya meningkatkan inklusivitas pekebun, jutaan pekebun menghadapi kesulitan untuk memperoleh sertifikasi. Studi ini mengkaji hambatan yang dihadapi pekebun untuk memenuhi standar kepatuhan regulasi sebelum memasuki proses sertifikasi dan bagaimana hambatan tersebut... (More)
Meningkatnya fokus global terhadap inisiatif kelapa sawit berkelanjutan memantik integrasi pekebun swadaya dalam sertifikasi kelapa sawit berkelanjutan. Pada tahun 2019, Roundtable on Sustainable Palm Oil (RSPO) memperkenalkan standar baru untuk pekebun swadaya. Sementara itu, melalui Peraturan Presiden no. 44 tahun 2020, Presiden Indonesia menetapkan kewajiban sertifikasi Indonesian Sustainable Palm Oil (ISPO) bagi pekebun pada tahun 2025. Ketika kedua sertifikasi tersebut berupaya meningkatkan inklusivitas pekebun, jutaan pekebun menghadapi kesulitan untuk memperoleh sertifikasi. Studi ini mengkaji hambatan yang dihadapi pekebun untuk memenuhi standar kepatuhan regulasi sebelum memasuki proses sertifikasi dan bagaimana hambatan tersebut memengaruhi inklusivitas pekebun dalam inisiatif kelapa sawit berkelanjutan. Melalui wawancara semi terstruktur dan diskusi kelompok terfokus, penelitian ini menganalisis perspektif empat kelompok pekebun swadaya anggota RSPO, kelompok pekebun swadaya bersertifikasi ISPO, dan komunitas petani swadaya yang tidak bersertifikasi di Provinsi Riau di Indonesia. Lebih lanjut, studi ini juga mengkaji perspektif berbagai pemangku kepentingan termasuk pembuat standar RSPO dan ISPO, dan pemerintah tingkat provinsi dan kabupaten/kota. Gagasan Walker (2012) tentang keadilan procedural, termasuk akses terhadap informasi, fasilitasi dan dukungan finansial, proses hukum, dan partisipasi dalam pengambilan keputusan, digunakan untuk menganalisis temuan.

Studi ini menemukan bahwa keterbatasan akses terhadap informasi mengenai sertifikasi SPO, minimnya pemahaman tentang peraturan dan legalitas lahan, dan dukungan finansial yang terbatas dapat menghambat pekebun swadaya untuk memenuhi kepatuhan regulasi. Fasilitasi dapat membantu pekebun dalam mengatasi masalah ini; namun, di tingkat lokal, akses untuk medapatkan fasilitasi tidak merata. Temuan menunjukkan bahwa ketidaksetaraan akses fasilitasi dipengaruhi oleh tiga faktor, yaitu kelembagaan, legalitas lahan, dan aspek praktik, yang harus diperhatikan untuk peningkatan peluang fasilitasi. Selain itu, sistem perizinan terpusat yang berlaku di tingkat lokal membatasi kemampuan pekebun untuk terlibat dalam proses perizinan; masalah teknis dan praktis kerap muncul ketika dihadapkan dengan peraturan dan birokrasi yang berbelit-belit. Rantai birokrasi yang panjang mengindikasikan masalah struktural karena kurangnya koordinasi antar lembaga pemerintah dan kepastian peraturan. Terlebih, pekebun menghadapi tantangan lingkungan yang berbeda-beda, yang mencegah kelompok pekebun swadaya untuk dapat memenuhi persyaratan pra-sertifikasi. Dengan demikian, dari sudut pandang praktis, keadilan prosedural yang diperlukan untuk mengintegrasikan petani swadaya ke dalam inisiatif kelapa sawit berkelanjutan belum tercapai. (Less)
Please use this url to cite or link to this publication:
author
Chandra, Adelina LU
supervisor
organization
course
MESM02 20201
year
type
H2 - Master's Degree (Two Years)
subject
keywords
sustainable certification, palm oil, independent smallholder, smallholder inclusion, procedural justice, regulatory compliance, sustainability science
publication/series
Master Thesis Series in Environmental Studies and Sustainability Science
report number
2020:028
funder
Swedish International Centre for Local Democracy, ICLD
language
English
id
9012152
date added to LUP
2020-06-08 10:39:17
date last changed
2020-06-08 10:55:52
@misc{9012152,
  abstract     = {{Increasing global focus on sustainable palm oil (SPO) initiatives has led to discussions of smallholder integration at the bottom of the supply chain. In 2019, the Roundtable on Sustainable Palm Oil (RSPO) introduced a new standard for independent smallholders. Meanwhile, through Presidential Regulation no. 44 of 2020, the President of Indonesia recently made Indonesian Sustainable Palm Oil (ISPO) mandatory for smallholders by 2025. While both certifications aim to improve smallholder inclusion, millions of palm oil independent smallholders face difficulties in attaining certification. This study examines the barriers that these smallholders face in pursuing the regulatory process prior to certification process and how they affect smallholder inclusion in sustainable palm oil initiatives. Through semi-structured interviews and focus group discussions, it analyses the perspectives of four independent smallholder groups pursuing RSPO, an ISPO certified independent smallholder group, and a non-certified independent smallholder community in Riau Province in Indonesia. It also assesses the perspectives of various decision-making stakeholders including certification standard-setters both RSPO and ISPO, and provincial- and local-level government. Walker’s (2012) notion of procedural justice, which includes access to information, access to facilitation and support, access to legal process, and participation in decision-making, is used to analyse the findings. 

The study finds that limited access to information regarding SPO certifications, a lack of understanding of regulations concerning land, and limited financial support may hinder independent smallholders from pursuing regulatory compliance. Facilitation can help farmers in addressing these issues; however, at the local level, access to facilitation is unequal. The findings show that the inequality is influenced by three factors, namely local institutional arrangement, land status and legality, and practicalities, must thus be concerned when attempting to improve facilitation opportunity. Furthermore, the current centralised licensing system that has been adopted at the local level limits smallholders’ ability to engage with the legal process; this is mainly due to technical and practical issues that arise in navigating convoluted regulations and bureaucracies. A lengthy bureaucratic chain indicates a structural problem due to a lack of coordination among government institutions and lack of clarity in regulations. Furthermore, farmers are facing environmental challenges to differing degrees, which prevents independent smallholder groups from being able to fulfil pre-certification requirements. Thus, from a practical point of view, procedural justice required to incorporate independent smallholders into sustainable palm oil initiatives has not yet been achieved.}},
  author       = {{Chandra, Adelina}},
  language     = {{eng}},
  note         = {{Student Paper}},
  series       = {{Master Thesis Series in Environmental Studies and Sustainability Science}},
  title        = {{To grip or to slip : smallholder inclusion in sustainable palm oil certifications in Riau, Indonesia}},
  year         = {{2020}},
}