Social Sustainability Assessment of Oil Palm Smallholders Business Partnership and Its Relation to The Achievement of Sustainable Development Goals: Case Study in North Sumatra Province

Abstract

This case study aims to assess the social sustainability level of smallholder oil palm plantation business partnerships and its relation to the achievement of the Sustainable Development Goals (SDGs). This case study was conducted using the social life cycle assessment (SLCA) approach according to UNEP's SLCA guidelines. The boundaries of the system under consideration are smallholder households that are members of cooperative Z who partner with PT X. There are five social sustainability indicators and six performance parameters that are studied and then identified for their relevance to achieving SDGs. This case study was conducted at PT X, which operates in South Labuhan Batu District, North Sumatra. The findings of this case study explain that in general the oil palm plantation business partnership between PT X and cooperative Z has positive social performance. Partially, a number of social sustainability indicators have met compliance standards, such as “fair trade relationship”, “supplier relationship”, “meeting basic needs”, and “access to services and inputs”. Meanwhile social performance is slightly below compliance standards found in the indicator of “wealth distribution”. The findings of this case study can also explain that good governance of smallholder oil palm plantation business partnerships can contribute to the achievement of the Sustainable Development Goals (SDGs), including SDGs 1, 2, 6, 8 and 12.