Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 6. No.

3 (2023)
e-ISSN: 2621-606X Page: 2269-2293

SUSTAINABLE PALM OIL INDUSTRY: A LITERATURE STUDY WITH

BIBLIOMETRIC ANALYSIS

Saleh Husin1
Universitas Indonesia, Jakarta Pusat, Indonesia
[email protected]

Chandra Wijaya2
Universitas Indonesia, Jakarta Pusat, Indonesia
[email protected]
A. Hanief Saha Ghafur3
Universitas Indonesia, Jakarta Pusat, Indonesia
[email protected]

T.M. Zakir Machmud4

Universitas Indonesia, Jakarta Pusat, Indonesia
[email protected]

Abstract

This article aims to discuss the latest trends and look for new research on the
sustainable palm oil industry. This research is a literature review using Publish or
Perish software to search for article data on Google Scholar and using VOSviewer to
analyze and visualize the data obtained. The research findings show 3 main group
themes of research on the sustainable palm oil industry and based on the research
findings, the researcher draws the conclusion that the research gap on the sustainable
palm oil industry is still very wide open for the theme of the institutional industry,
producers, and the European Union as well as on the palm oil certification system,
especially in Indonesia.

Keywords: Sustainable Palm Oil Industry, Literature Review, Bibliometrics

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INTRODUCTION
Oil palm is an agricultural product that has a strategic role in Indonesia’s economic
development. Indonesia as the world’s largest producer and palm oil industry has
contributed to the employment of 16 million people, both directly and indirectly (Haryanti
et al., 2021). Palm oil production in 2018 was recorded at 51.453 million tons, including
42.883 million tons of crude palm oil (CPO=Crude Palm Oil) and 8.576 million tons of
palm kernel (PKO=Palm Kernel Oil). The total production of smallholder plantations was
15.296 million tons (35%), large state plantations 2.147 million tons (5%), and large private
plantations 25.439 million tons (60%) (BPS-Statistics Indonesia, 2020).
Plantation commodities are a mainstay of national income and foreign exchange,
with total plantation exports in 2018 reaching $28.1 billion, or equivalent to IDR 393
trillion. The contribution of the plantation subsector to the national economy is expected to
increase and support the development of the horticultural sector as a whole (Krismadayanti,
2020).
The palm oil industry in Indonesia is built with a sustainable approach that
emphasizes the balance between social, economic, and environmental aspects. This is in
line with the Indonesian government's commitment to sustainable development as
stipulated in the 2020-2024 National Medium-Term Development Plan (RPJMN).
In the RPJMN 2020-2024, sustainable development is identified as a mainstreaming
aspect, which aims to provide access to equitable and inclusive development and protect the
environment, in order to sustain increased sustainable development. Through this approach,
the Indonesian government believes that sustainable palm oil development contributes
significantly to the achievement of the Sustainable Development Goals (SDGs) (Jonathan
et al., 2020).
The government has also sought to accelerate the development of sustainable palm
oil by issuing Presidential Regulation (Perpres) No. 44 of 2020 related to Indonesia's
certification system for sustainable palm oil plantations, commonly known as Indonesian
Sustainable Palm Oil or ISPO. This regulation requires all types of oil palm plantations,
namely large state plantations, large private plantations, and Indonesian smallholder
plantations, to be ISPO certified, ensuring that production activities are carried out in
accordance with sustainability principles (Apriyanto et al., 2020).

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Oil palm is not only a major contributor to the country’s foreign exchange due to its
increasing export value, but also a driver of the regional economy, absorbing labor and
alleviating hunger, reducing labor poverty in rural areas. Oil palm grew from 300,000
hectares in 1980 to 16.1 million hectares today (according to GAPKI data), with CPO
production of 43 million tons. It should be noted that the percentage of smallholder
plantations has been steadily increasing and now represents 52% of the total cultivation
area. The total area of smallholder plantations will reach 9 million hectares, while the area
of state-owned oil palm plantations is relatively small, only 515 hectares (D. Patone et al.,
2020).
The entire oil palm plantation could employ 4.2 million workers for smallholder oil
palm producers, but 8.2 million people in total. Oil palm is also a source of income for 1.5
million smallholders. Economically, oil palm has played an important role in regional
economies, in at least 31 districts and cities in Indonesia. Many regions and cities are
thriving thanks to oil palm, especially in Riau province, as well as several islands of
Kalimantan and Sulawesi (Ngadi & Noveria, 2018).
The achievement of palm oil performance is very proud, in the midst of various
negative campaigns that always overshadow. The palm oil industry faces many challenges
in the form of international black campaigns against palm oil. This issue needs to be
understood more broadly, as it is actually a global vegetable oil economic competition.
Other issues that often arise are related to nutrition and health, social and rural
development, as well as environmental aspects and sustainability. Sustainable plantation
management is essential. Therefore, Indonesia has long had plans to develop sustainable
palm oil, especially in the form of the mandatory ISPO (Indonesian Sustainable Palm Oil).
This Indonesian sustainable palm oil program has deep concerns in various aspects,
such as licensing systems and plantation management, application of cultivation techniques,
environmental monitoring, accountability in managing employees, empowerment,
economic development, social responsibility, and sustainable business improvement. Great
efforts have been made to date to establish a sustainable palm oil planting program and its
implementation has resulted in a country with the largest percentage of certified sustainable
palm oil in the world. Of all certified palm oil production in the world, Indonesia accounts
for 59%, while Malaysia only 27% (Yudistira & Susiatiningsih, 2018).

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Palm oil products currently face many challenges, the most prominent of which is
plantation land tenure. It is estimated that around 1.7 million hectares of oil palm land
currently do not have a clear and specific status, both in terms of legal ownership and land
use. Around 13.5% (1.5 million ha) of oil palm trees are currently located in peat swamps.
Deforestation due to oil palm expansion cannot be ignored (Kospa, 2016).
To address these challenges, various political supports are needed. Researchers
noted that there are nine policies needed, namely: (1) increasing the productivity of small-
scale oil palm plantations through replanting programs, (2) providing certified palm kernel,
(3) increasing access to financing for smallholders through community land certification
programs, (4) increasing downstream value-added, (5) stabilizing prices through improving
national and regional markets, (6) investment and trade cooperation and diplomacy, (7)
improving infrastructure and trade facilitation, (8) data and information, and (9)
strengthening farmer and entrepreneur organizations.
By 2050, the world will need an additional 60-170 million tons of vegetable oil to
meet the needs of a growing population and changing consumption patterns. Faced with
this enormous demand, the world has the opportunity to meet it with soybean oil or palm
oil. If the world chooses to expand soybean cultivation, it will have to convert 120-340
million hectares of forest. However, if we choose to expand oil palm acreage, the world
only needs to convert one-tenth or 12-34 million hectares. This means that Indonesian palm
oil has a huge opportunity to grow further, making it even more important to expand the
implementation of sustainable business plans and plantation management. The implication
is that political support from the government is urgently needed.

REVIEW OF LITERATURE
The sustainable palm oil industry has gained significant attention in recent years due
to concerns about environmental degradation, deforestation, and social issues associated
with palm oil production. This literature review aims to provide an overview of key
theories and concepts related to the sustainable palm oil industry, as well as highlight the
findings of relevant studies.

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Environmental Impact
Numerous studies have focused on the environmental impact of palm oil
production. The theory of land-use change and deforestation has been widely discussed
(Koh & Wilcove, 2008). These studies highlight the conversion of tropical forests to palm
oil plantations, leading to biodiversity loss, habitat destruction, and increased greenhouse
gas emissions. Figures such as the extent of deforestation and carbon emissions have been
quantified in various studies (Gaveau et al., 2014).
Social Issues:
The social dimension of the palm oil industry has also been extensively studied. The
theory of social sustainability emphasizes the importance of fair labor practices, community
engagement, and respect for human rights (Sikor et al., 2013). Scholars have examined
issues such as land rights conflicts, labor conditions, and the displacement of indigenous
communities (Colchester, 2011). Figures related to the number of affected communities and
the scale of land conflicts have been reported in several studies (Obidzinski et al., 2012).
Certification and Standards
The concept of certification and standards has emerged as a potential solution to
promote sustainable palm oil production. The theory of market-based governance suggests
that certification schemes can incentivize producers to adopt sustainable practices (Vellema
et al., 2010). Figures related to the number of certified plantations and the market share of
sustainable palm oil have been analyzed (RSPO, 2021).
Policy and Governance
The role of policy and governance in promoting sustainability within the palm oil
industry has been widely discussed. The theory of institutional analysis and development
provides insights into the design and effectiveness of governance mechanisms (Ostrom,
2005). Scholars have examined the impact of government regulations, international
agreements, and corporate commitments on sustainable palm oil production (Carlson et al.,
2018). Figures related to policy changes and the adoption of sustainable practices have been
documented in various studies (Pacheco et al., 2010).
In conclusion, the literature on the sustainable palm oil industry encompasses a
wide range of theories, concepts, and empirical findings. This review has provided a brief
overview of key themes, including environmental impact, social issues, certification and

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standards, and policy and governance. Further research is needed to address the challenges
and opportunities associated with achieving a truly sustainable palm oil industry.

RESEARCH METHOD
This research uses a literature study using Harzing’s Publish or Perish (PoP)
software by searching with “Title words” and “Keywords” “Sustainable Palm Oil Industry
in Indonesia” and “Sustainable Palm Oil Industry” from 2010 to 2021 on Google Scholar
and limited to the maximum number of "papers" or articles of 200 (two hundred) articles so
that 4 (four) combination files of the search results are obtained and each file is saved in
RIS (Research Information Systems) format.
The 4 (four) RIS format files continued to be analyzed visually with the Vosviewer
- Visualizing Scientific Landscape software version 1.6.17 so that Network, Overlay, and
Density Visualization are obtained. Figure 1. illustrates the steps mentioned above.

Searches with the phrase “Sustainable Palm Oil Industry” and

“Sustainable Palm Oil Industry in Indonesia” in Google
Scholar between 2010-2021 with the number of articles

Visualization Analysis of Publish or

Perish (PoP) Software Result Files with
Vosviewer Software

Software Publish
or Perish (PoP)

Software
Vosviewerr

Visualization Analysis Results with

Vosviewer Software

Figure 1
Research Framework

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RESULTS AND DISCUSSION

A search conducted by researchers using PoP software on Google Scholar with the
Title words: “Sustainable Palm Oil Industry in Indonesia” with a publication range between
2010 and 2021, the number of papers is 3, and one of them gets an h-index = 3, which
means that it has been cited 3 times, as shown in Figure 2. Discussion of results should be
argumentative and should point out how the findings, theories, previous studies, and
empirical facts are relevant and contribute something new to the knowledge of Sharia
economics development.

Figure 2
Search using PoP on Google Scholar

Meanwhile, a search conducted by researchers using PoP software on Google

Scholar with Keywords: “Sustainable Palm Oil Industry in Indonesia” with a publication
range between 2010 and 2021, the number of papers is 200 and gets the number of citations
= 609, citation per year = 55.35, citation per paper = 3.05 and h-index = 13, as shown in
Figure 3.

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Figure 3
Search using PoP on Google Scholar with keywords
“Industri Kelapa Sawit Berkelanjutan di Indonesia”

For searches conducted by researchers using PoP software on Google Scholar with
Title words: “Sustainable Palm Oil Industry” with a publication range between 2010 and
2021, the number of papers is 13 and get the number of citations = 14, citation per year =
1.27, citation per paper = 1.08 and h-index = 3, as shown in Figure 4.

Figure 4
Search using PoP on Google Scholar with keywords “Industri Kelapa Sawit
Berkelanjutan”

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Meanwhile, a search conducted by researchers using PoP software on Google

Scholar with Keywords: “Sustainable Palm Oil Industry in Indonesia” with a publication
range between 2010 and 2021, the number of papers is 200 and gets the number of citations
= 613, citation per year = 55.73, citation per paper = 3.07 and h-index = 13, as shown in
Figure 5.

Figure 5
Search using PoP software on Google Scholar with Keywords: “Industri Kelapa Sawit
Berkelanjutan” with a publication range between 2010 and 2021

Based on the results obtained from the PoP software, it is known that there are 203
and 213 scientific articles/publications on the development of research utilizing institutional
repositories that were queried on Google Scholar in 2010-2021 with the sentences
“Sustainable Palm Oil Industry in Indonesia” and “Sustainable Palm Oil Industry”. The
data was then analyzed descriptively based on the year of publication, publishing
institution, publishing country, journal/publication name, document type, and research
topic. To obtain a research map, the data was exported in RIS (Research Information
Systems) file format. The exported data was then processed and analyzed using the

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VOSViewer application program to find out the bibliometric map of research development
in the period 2010 to 2021.
Figure 6 shows the Network Visualization obtained from 4 RIS format file query
results from Google Scholar, which resulted in 4 groups with 3 main groups, links = 229
that connect 33 items.

Figure 6
Network Visualisation Results from search results with keywords “Industri Kelapa
Sawit Berkelanjutan di Indonesia” and “Industri Kelapa Sawit Berkelanjutan”
While Figure 7 is an Overlay Visualization which shows that the more recent the
research, the brighter the color (yellow) and the circles show the bigger, the more people
are researching and the smaller the circle, the less people are researching.

Figure 7
Overlay Visualization

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Figure 8. is a Density Visualization that shows that the larger the letter and the
brighter (yellow) the background color, the more it examines.

Figure 8
Density Visualization

Researchers will elaborate on the Network Visualization, Figure 9 and Figure 10

below to see that research on the theme “Sustainable Palm Oil” has 2 interconnected groups
and research on Palm Oil related to the theme of Sustainable Palm Oil is still very relevant
to be raised, this can be seen from the distance of the network. Also, the theme of the
European Union, Indonesian Sustainable Palm Oil and its producers is still very rarely
researched, this can be seen from the small sphere and distance of the network related to
sustainable palm oil or sustainable palm oil.

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Figure 9
Network Visualization, to see that research on the theme “Sustainable Palm Oil”

Figure 10
Network Visualization, to see that research on the theme “Sustainable Palm Oil”

Meanwhile, Figure 11. shows that the “Indonesian Sustainable Palm Oil” theme
group has themes that we can still elaborate and research, especially in the industrial and
institutional sectors, producers and about the certification system that supports “Indonesian
Sustainable Palm Oil”.

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Figure 11
Themes that we can still elaborate and research, especially in the industrial and
institutional sectors, producers and about the certification system that supports
“Indonesian Sustainable Palm Oil”

Figure 12 and Figure 13 once again emphasize that the themes of industry
institutions, producers, and the European Union are still “about the palm oil certification
system” are very newly researched and are still very open and still possible to find
“novelty” or novelty to raise these themes in the framework of the Sustainable Palm Oil
Industry, especially in Indonesia.

Figure 12
Visualization Network themes that are very recently researched and have great
novelty in the Sustainable Palm Oil Industr

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Figure 13
Visualization Network themes that are very recently researched and have great
novelty in the Sustainable Palm Oil Industry

Overall, the articles you provided discuss various important aspects of palm oil.
These articles show that palm oil is an important commodity for Indonesia, but it also has a
significant environmental impact. It is important to develop sustainable palm oil production
so that palm oil can benefit society without damaging the environment.
Palm oil is the most widely used vegetable oil in the world. This is because palm oil has
various benefits, such as having a high melting point, being resistant to oxidation, and
having a neutral taste. Palm oil is also a good source of healthy fats for the body.
However, the production of palm oil also has a significant environmental impact.
Palm oil plantations are often associated with deforestation, forest fires, and human rights
violations. Deforestation associated with palm oil plantations has destroyed animal and
plant habitats, and has contributed to climate change. Forest fires associated with palm oil
plantations have caused air and water pollution, and have caused human deaths. Human
rights violations associated with palm oil plantations have occurred in various forms, such
as labor exploitation, discrimination, and violence.
Therefore, it is important to develop sustainable palm oil production. Sustainable
palm oil production is palm oil production that does not have a significant negative impact
on the environment or society. There are several ways to develop sustainable palm oil
production, such as: a) Planting oil palm trees on land that does not have high conservation

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value; b) Using environmentally friendly plantation management practices; c) Providing

economic and social benefits to communities living around palm oil plantations
Sustainable palm oil production can benefit the environment, society, and the
economy. For the environment, sustainable palm oil production can reduce deforestation,
forest fires, and pollution. For society, sustainable palm oil production can create jobs,
increase income, and improve quality of life. For the economy, sustainable palm oil
production can increase the competitiveness of Indonesian palm oil products in the global
market.
The Indonesian government has taken several steps to develop sustainable palm oil
production. These steps include: a) Establishing a moratorium on the opening of new land
for palm oil plantations; b) Publishing regulations on sustainable palm oil certification; c)
Increasing cooperation with palm oil companies and communities to develop sustainable
palm oil production
The regulation on sustainable palm oil certification published by the Indonesian
government is Indonesian Sustainable Palm Oil (ISPO). ISPO is a sustainable palm oil
certification standard that is designed to ensure that palm oil produced in Indonesia is
produced sustainably. ISPO covers various aspects, such as environmental, social, and
economic aspects.
Sustainable palm oil production is a challenge, but it is also an opportunity. The
challenges faced are lack of access to technology and information, lack of financial support,
and skepticism from the European Union. The opportunities that exist are the growing palm
oil market, the increasing demand for sustainable palm oil, and the Indonesian
government's support for sustainable palm oil production.
With close cooperation between the government, palm oil companies, and the
community, Indonesia can develop sustainable palm oil production. Sustainable palm oil
production can benefit the environment, society, and the Indonesian economy.
The other articles overview of the current state of sustainable palm oil production in
Indonesia. The articles show that there is a growing awareness of the importance of
sustainable palm oil production, both in Indonesia and in the international community.
However, there are still challenges that need to be addressed in order to ensure that
sustainable palm oil production becomes the norm in Indonesia.

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One of the biggest challenges to sustainable palm oil production is the lack of
access to capital, technology, and information for smallholder farmers. Smallholder farmers
make up the majority of palm oil producers in Indonesia, and they often struggle to meet
the high standards required for sustainable palm oil production. This is due to a number of
factors, such as the high cost of certification, the lack of access to credit, and the lack of
knowledge about sustainable palm oil production practices.
Another challenge to sustainable palm oil production is the lack of coordination
between different stakeholders. There are many different actors involved in the palm oil
industry, including government agencies, palm oil companies, smallholder farmers, and
environmental groups. These different actors often have different priorities, which can
make it difficult to develop and implement effective policies and programs for sustainable
palm oil production.
Despite the challenges, there are a number of promising developments in the field of
sustainable palm oil production in Indonesia. The Indonesian government has taken a
number of steps to promote sustainable palm oil production, such as the establishment of
the Indonesian Sustainable Palm Oil (ISPO) certification program. ISPO is a voluntary
certification program that aims to ensure that palm oil produced in Indonesia meets high
standards of sustainability. The government has also provided financial assistance to
smallholder farmers to help them meet the ISPO standards.
In addition to government initiatives, there are a number of private sector
companies that are committed to sustainable palm oil production. These companies are
developing innovative practices and technologies to reduce the environmental impact of
palm oil production. They are also working to improve the livelihoods of smallholder
farmers and to build stronger relationships with local communities.
The future of sustainable palm oil production in Indonesia looks bright. There is a
growing awareness of the importance of sustainable palm oil production, and there are a
number of promising developments underway. However, there are still challenges that need
to be addressed in order to ensure that sustainable palm oil production becomes the norm in
Indonesia. With continued efforts from the government, the private sector, and civil society,
Indonesia can become a global leader in sustainable palm oil production.

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The articles provide a comprehensive overview of various important aspects of the

palm oil industry in Indonesia. These articles show that the palm oil industry in Indonesia
has grown rapidly in recent years. However, the palm oil industry also faces various
challenges, such as discrimination by the European Union, deforestation, and forest fires.
To overcome these challenges, the Indonesian government needs to work together with
various parties, including palm oil companies, indigenous communities, and environmental
organizations.
The articles you provided provide a comprehensive overview of the palm oil
industry in Indonesia. The articles show that the palm oil industry in Indonesia has grown
rapidly in recent years, and it is now a major contributor to the Indonesian economy.
However, the palm oil industry also faces various challenges, such as discrimination by the
European Union, deforestation, and forest fires.
One of the most important challenges facing the palm oil industry in Indonesia is
discrimination by the European Union. The European Union has imposed a number of
restrictions on the import of palm oil from Indonesia, citing concerns about deforestation
and environmental damage. These restrictions have had a significant impact on the
Indonesian palm oil industry, and they have led to a decline in exports.
Another challenge facing the palm oil industry in Indonesia is deforestation. The
expansion of palm oil plantations has led to deforestation in many parts of Indonesia,
including rainforests and peatlands. Deforestation has a number of negative environmental
impacts, including the loss of biodiversity, the release of greenhouse gases, and the
increased risk of forest fires.
Forest fires are a major problem in Indonesia, and they often occur in areas where
palm oil plantations have been developed. Forest fires can cause widespread damage to the
environment, and they can also have a negative impact on human health.
To overcome the challenges facing the palm oil industry in Indonesia, the
government needs to work together with various parties, including palm oil companies,
indigenous communities, and environmental organizations. The government needs to
develop policies that promote sustainable palm oil production, and it needs to provide
support to palm oil companies that are committed to sustainability. The government also

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needs to work with indigenous communities to ensure that their rights are protected, and it
needs to take steps to reduce the risk of forest fires.
The articles you provided a valuable resource for understanding the palm oil
industry in Indonesia. The articles highlight the importance of the palm oil industry to the
Indonesian economy, and they also discuss the challenges facing the industry. The articles
provide a good starting point for further research on the palm oil industry in Indonesia.

CONCLUSION
With a literature study on the theme of the Sustainable Palm Oil Industry assisted by
PoP and Vosviewer software, the results obtained the theme of the institutional industry,
producers, and the European Union are still and “about the palm oil certification system” is
very new to research and is still very open and still possible to find “novelty” to raise these
themes in the framework of the Sustainable Palm Oil Industry, especially in Indonesia.
These themes are very relevant, especially regarding the certification of oil palm
plantations, ISPO certification, which will provide assurance that the production practices
carried out have followed the principles and rules of sustainability. This is inseparable from
good cooperation between the industry, institutions in this case the relevant ministries and
palm oil producers themselves.

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