UI academic devises green productivity strategy for sustainable palm oil

An academic from the University of Indonesia has formulated a green productivity strategy to support sustainable palm oil operations in Indonesia. Estiarty Haryani's research, presented at UI Depok, aims to help the national palm oil industry navigate increasing global demands for sustainability.

The strategy is particularly relevant given the European Union's Deforestation-Free Regulation (EUDR), which requires products sold in the EU to be free from deforestation practices. Haryani highlighted the urgent need for an approach that balances economic efficiency with environmental preservation, stating, "This research stems from the most current reality where the domestic palm oil industry faces significant pressure, especially concerning environmental aspects and global market dynamics."

Using a qualitative approach combined with mixed methods, including interviews, surveys, and observations, Haryani's research also employed Structural Equation Modeling (SEM) to analyze relationships between variables. The findings indicated that the implementation of green productivity at the studied company was rated as good. An analysis using the PESTEL framework revealed that political and legal factors were the primary drivers shaping policies and encouraging technology adoption within the industry.

The dissertation proposes a strategic framework designed to meet the challenges of the national palm oil industry amidst global sustainability demands. By integrating economic efficiency and environmental protection, the research offers practical benefits for industry players seeking to enhance competitiveness and meet international standards. Haryani formulated a sustainability strategy based on SMART principles (specific, measurable, achievable, relevant, time-bound), emphasizing the role of strong, consistent regulations in driving effective green productivity implementation.

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This research stems from the most current reality where the domestic palm oil industry faces significant pressure, especially concerning environmental aspects and global market dynamics.