Assessing the Sustainability Level of Oil Palm Smallholders Plantation Business using Application of RAPPO Method in Simalungun District, North Sumatra

Abstract

The existence of smallholder oil palm plantations plays a central role in the growth of oil palm plantation area in Indonesia. However, smallholder oil palm plantations still face major challenges related to productivity and sustainability. This study aims to assess the sustainability level of certified and non-certified smallholder oil palm plantations in Simalungun District, North Sumatra, using the Rapid Appraisal for Palm Oil (RAPPO) method. The analysis was based on four dimensions of sustainability: economic, social, ecological and institutional. The results show that certified smallholders have a better level of sustainability compared to non-certified smallholders. The cumulative sustainability score for certified smallholders is 67.71 (moderately sustainable), while non-certified smallholders only reach 47.45 (less sustainable). The institutional dimension is a differentiating factor, where certified smallholders benefit from farmer groups and cooperatives in the form of counseling, market access, and the application of sustainable cultivation techniques. Therefore, efforts to strengthen institutions through increased participation in farmer groups and cooperatives, as well as continuous counseling, are strategic steps in improving the sustainability of smallholder oil palm plantation businesses in Simalungun District.