Sustainable Palm Oil Investment Climate in Indonesia: Foreign and Domestic Promotion by the Local Government
DOI:
https://doi.org/10.46507/jcgpp.v5i1.266Keywords:
Government Strategy, Investment, Palm Oil, Sustainable DevelopmentAbstract
This paper focuses on foreign and domestic palm oil investment promotion strategies in Dumai, Indonesia, to assess the sustainable development investment climate. Exploratory qualitative research is conducted with a case study to examine the foreign and domestic oil palm investment climate. The researchers employed NVivo 12 Plus software and the Biblioshiny application to collect, analyse and visualise bibliometric data. The research indicates that the Dumai government has pursued a strategy to stabilise the foreign and domestic palm oil investment climate by conducting promotions abroad and domestically. The conclusions show that the oil palm investment climate has been unable to positively contribute to economic, social and environmental growth in sustainable development in Dumai. Positive impacts of oil palm investment include offering livelihoods, creating new jobs and increasing local revenue. This research aids the government of Dumai in improving the global palm oil sustainable development investment climate.
References
Abidin, Z., Adawiyah, W. R., Shaferi, I., & Sodiq, A. (2023). Financing innovation for sustainable supply chain management in social business: a case of Qurban rituals in Indonesia. Journal of Islamic Accounting and Business Research.
Allsop, D. B., Chelladurai, J. M., Kimball, E. R., Marks, L. D., & Hendricks, J. J. (2022). Qualitative methods with Nvivo software: A practical guide for analyzing qualitative data. Psych, 4(2), 142–159.
Awang, A. H., Rela, I. Z., Abas, A., Johari, M. A., Marzuki, M. E., Mohd Faudzi, M. N. R., & Musa, A. (2021). Peat land oil palm farmers’ direct and indirect benefits from good agriculture practices. Sustainability, 13(14), 7843.
Azubuike, S. I., Nakanwagi, S., & Pinto, J. (2023). Mining Resource Corridor development in Nigeria: critical considerations and actions for a diversified and sustainable economic future. Mineral Economics, 36(1), 59–75.
Berawi, M. A., Basten, V., Muljono, T. E., & Gunawan, G. (2021). Urban Planning in the Context of Seatropolis City Through the Public–Private Partnership Scheme. Collabouration and Integration in Construction, Engineering, Management and Technology: Proceedings of the 11th International Conference on Construction in the 21st Century, London 2019, 47–52.
Brandão, F., Schoneveld, G., Pacheco, P., Vieira, I., Piraux, M., & Mota, D. (2021). The challenge of reconciling conservation and development in the tropics: Lessons from Brazil’s oil palm governance model. World Development, 139, 105268.
Cassell, C., & Bishop, V. (2019). Qualitative data analysis: Exploring themes, metaphors and stories. European Management Review, 16(1), 195–207.
Chapman, C. A., Abernathy, K., Chapman, L. J., Downs, C., Effiom, E. O., Gogarten, J. F., Golooba, M., Kalbitzer, U., Lawes, M. J., & Mekonnen, A. (2022). The future of sub-Saharan Africa’s biodiversity in the face of climate and societal change. Frontiers in Ecology and Evolution, 10, 790552.
Chrisendo, D., Siregar, H., & Qaim, M. (2021). Oil palm and structural transformation of agriculture in Indonesia. Agricultural Economics, 52(5), 849–862.
Creswell, J. W., Hanson, W. E., Clark Plano, V. L., & Morales, A. (2007). Qualitative research designs: Selection and implementation. The Counseling Psychologist, 35(2), 236–264.
Deng, J.-B., Wahyuni, H. I., & Yulianto, V. I. (2020). Labour migration from Southeast Asia to Taiwan: Issues, public responses and future development. Asian Education and Development Studies, 10(1), 69–81.
Desouza, K. C., Dawson, G. S., & Chenok, D. (2020). Designing, developing, and deploying artificial intelligence systems: Lessons from and for the public sector. Business Horizons, 63(2), 205–213.
Evans, W. D., & French, J. (2021). Demand creation for COVID-19 vaccination: overcoming vaccine hesitancy through social marketing. Vaccines, 9(4), 319.
Falatehan, A. F., & Setiawan, B. I. (2020). Economic risk characteristics of an Indonesian palm oil value chain and identifying sources of uncertainty in policy making. Supply Chain Resilience: Reducing Vulnerability to Economic Shocks, Financial Crises, and Natural Disasters, 109–137.
Fatmawati, F., Mustari, N., Haerana, H., Niswaty, R., & Abdillah, A. (2022). Waste Bank Policy Implementation through Collabourative Approach: Comparative Study—Makassar and Bantaeng, Indonesia. Sustainability (Switzerland), 14(13).
Forestier, O., & Kim, R. E. (2020). Cherry‐picking the Sustainable Development Goals: Goal prioritization by national governments and implications for global governance. Sustainable Development, 28(5), 1269–1278.
Frondizi, R., Fantauzzi, C., Colasanti, N., & Fiorani, G. (2019). The evaluation of universities’ third mission and intellectual capital: Theoretical analysis and application to Italy. Sustainability, 11(12), 3455.
Gallagher, S. E., & Savage, T. (2023). Challenge-based learning in higher education: an exploratory literature review. Teaching in Higher Education, 28(6), 1135–1157.
García‐Quevedo, J., Jové‐Llopis, E., & Martínez‐Ros, E. (2020). Barriers to the circular economy in European small and medium‐sized firms. Business Strategy and the Environment, 29(6), 2450–2464.
Gills, B., & Morgan, J. (2022). Global climate emergency: After COP24, climate science, urgency, and the threat to humanity. In Economics and Climate Emergency (pp. 253–270). Routledge.
Goh, C. S., Wicke, B., Verstegen, J., Faaij, A., & Junginger, M. (2016). Linking carbon stock change from land-use change to consumption of agricultural products: A review with Indonesian palm oil as a case study. Journal of Environmental Management, 184, 340–352.
Gong, Y., Yang, J., & Shi, X. (2020). Towards a comprehensive understanding of digital transformation in government: Analysis of flexibility and enterprise architecture. Government Information Quarterly, 37(3), 101487.
Jacobsen, D. I., & Johnsen, Å. (2020). Alignment of strategy and structure in local government. Public Money & Management, 40(4), 276–284.
Kano, L., Tsang, E. W. K., & Yeung, H. W. (2020). Global value chains: A review of the multi-disciplinary literature. Journal of International Business Studies, 51, 577–622.
Klein, V. B., & Todesco, J. L. (2021). COVID‐19 crisis and SMEs responses: The role of digital transformation. Knowledge and Process Management, 28(2), 117–133.
Kottika, E., Özsomer, A., Rydén, P., Theodorakis, I. G., Kaminakis, K., Kottikas, K. G., & Stathakopoulos, V. (2020). We survived this! What managers could learn from SMEs who successfully navigated the Greek economic crisis. Industrial Marketing Management, 88, 352–365.
Lahtinen, V., Dietrich, T., & Rundle-Thiele, S. (2020). Long live the marketing mix. Testing the effectiveness of the commercial marketing mix in a social marketing context. Journal of Social Marketing, 10(3), 357–375.
Le Thi Thu, H., Tran, T., Trinh Thi Phuong, T., Le Thi Tuyet, T., Le Huy, H., & Vu Thi, T. (2021). Two decades of stem education research in middle school: A bibliometrics analysis in scopus database (2000–2020). Education Sciences, 11(7), 353.
Lim, C. H., Lim, S., How, B. S., Ng, W. P. Q., Ngan, S. L., Leong, W. D., & Lam, H. L. (2021). A review of industry 4.0 revolution potential in a sustainable and renewable palm oil industry: HAZOP approach. Renewable and Sustainable Energy Reviews, 135, 110223.
Litvinenko, V. S. (2020). Digital economy as a factor in the technological development of the mineral sector. Natural Resources Research, 29(3), 1521–1541.
Luo, Y., Xue, Q., & Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of World Business, 45(1), 68–79.
Lusiana, B., Slingerland, M., Miccolis, A., Khasanah, N., Leimona, B., & van Noordwijk, M. (2023). Oil palm production, instrumental and relational values: the public relations battle for hearts, heads, and hands along the value chain. Current Opinion in Environmental Sustainability, 64, 101321.
Mayer, C. (2021). The future of the corporation and the economics of purpose. Journal of Management Studies, 58(3), 887–901.
McGowan, L. J., Powell, R., & French, D. P. (2020). How can use of the Theoretical Domains Framework be optimized in qualitative research? A rapid systematic review. British Journal of Health Psychology, 25(3), 677–694.
Miller, M. A., & Tonoto, P. (2023). Leveraging plural valuations of mangroves for climate interventions in Indonesia. Sustainability Science, 1–15.
Miller, M. A., Tonoto, P., & Taylor, D. (2022). Sustainable development of carbon sinks? Lessons from three types of peatland partnerships in Indonesia. Sustainable Development, 30(1), 241–255.
Munirathinam, S. (2020). Industry 4.0: Industrial internet of things (IIOT). In Advances in computers (Vol. 117, Issue 1, pp. 129–164). Elsevier.
Naidu, L., & Moorthy, R. (2021). A review of key sustainability issues in Malaysian palm oil industry. Sustainability, 13(19), 10839.
Nesadurai, H. E. S. (2019). Transnational Private Governance as a Developmental Driver in Southeast Asia: The Case of Sustainable Palm Oil Standards in Indonesia and Malaysia. The Journal of Development Studies, 55(9), 1892–1908.
Osano, H. M. (2019). Global expansion of SMEs: role of global market strategy for Kenyan SMEs. Journal of Innovation and Entrepreneurship, 8(1), 13.
Pramudya, E. P., Wibowo, L. R., Nurfatriani, F., Nawireja, I. K., Kurniasari, D. R., Hutabarat, S., Kadarusman, Y. B., Iswardhani, A. O., & Rafik, R. (2022). Incentives for Palm Oil Smallholders in Mandatory Certification in Indonesia. Land, 11(4), 576.
Pranckutė, R. (2021). Web of Science (WoS) and Scopus: The titans of bibliographic information in today’s academic world. Publications, 9(1), 12.
Prasanna, R., Jayasundara, J., Naradda Gamage, S. K., Ekanayake, E. M. S., Rajapakshe, P. S. K., & Abeyrathne, G. (2019). Sustainability of SMEs in the competition: A systemic review on technological challenges and SME performance. Journal of Open Innovation: Technology, Market, and Complexity, 5(4), 100.
Prianto, A. L., Nurmandi, A., Qodir, Z., & Jubba, H. (2021). Climate change and religion: from ethics to sustainability action. E3S Web of Conferences, 277, 6011.
Purnomo, E. P., Ramdani, R., Agustiyara, A., Tomaro, Q. P. V, & Samidjo, G. S. (2019). Land ownership transformation before and after forest fires in Indonesian palm oil plantation areas. Journal of Land Use Science, 14(1), 37–51.
Pye, O. (2019). Commodifying sustainability: Development, nature and politics in the palm oil industry. World Development, 121, 218–228.
Safriyana, S., Marimin, M., Anggraeni, E., & Sailah, I. (2021). Spatial-based model for oil palm plantation suitability rating and its smallholder farmers’ competitiveness: A case study at Kampar Regency, Riau Province, Indonesia. Journal of Science and Technology Policy Management, 12(2), 283–308.
Santika, T., Wilson, K. A., Budiharta, S., Law, E. A., Poh, T. M., Ancrenaz, M., Struebig, M. J., & Meijaard, E. (2019). Does oil palm agriculture help alleviate poverty? A multidimensional counterfactual assessment of oil palm development in Indonesia. World Development, 120, 105–117.
Schachenhofer, L., Kummer, Y., & Hirsch, P. (2023). An analysis of underused urban infrastructures: usage opportunities and implementation barriers for sustainable logistics. Applied Sciences, 13(13), 7557.
Semieniuk, G., Campiglio, E., Mercure, J., Volz, U., & Edwards, N. R. (2021). Low‐carbon transition risks for finance. Wiley Interdisciplinary Reviews: Climate Change, 12(1), e678.
Septiarini, A., Sunyoto, A., Hamdani, H., Kasim, A. A., Utaminingrum, F., & Hatta, H. R. (2021). Machine vision for the maturity classification of oil palm fresh fruit bunches based on color and texture features. Scientia Horticulturae, 286, 110245.
Shahzad, U., Ferraz, D., Nguyen, H.-H., & Cui, L. (2022). Investigating the spill overs and connectedness between financial globalization, high-tech industries and environmental footprints: Fresh evidence in context of China. Technological Forecasting and Social Change, 174, 121205.
Sima, V., Gheorghe, I. G., Subić, J., & Nancu, D. (2020). Influences of the industry 4.0 revolution on the human capital development and consumer behavior: A systematic review. Sustainability, 12(10), 4035.
Song, Y., Zhang, X., & Zhang, M. (2021). The influence of environmental regulation on industrial structure upgrading: Based on the strategic interaction behavior of environmental regulation among local governments. Technological Forecasting and Social Change, 170, 120930.
Su, S., Zhang, H., Wang, M., Weng, M., & Kang, M. (2021). Transit-oriented development (TOD) typologies around metro station areas in urban China: A comparative analysis of five typical megacities for planning implications. Journal of Transport Geography, 90, 102939.
Syahza, A., & Asmit, B. (2019). Regional economic empowerment through oil palm economic institutional development. Management of Environmental Quality: An International Journal, 30(6), 1256–1278.
Teng, S., Khong, K. W., & Che Ha, N. (2020). Palm oil and its environmental impacts: A big data analytics study. Journal of Cleaner Production, 274, 122901.
Troise, C., Corvello, V., Ghobadian, A., & O’Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174, 121227.
Yuliani, E. L., de Groot, W. T., Knippenberg, L., & Bakara, D. O. (2020). Forest or oil palm plantation? Interpretation of local responses to the oil palm promises in Kalimantan, Indonesia. Land Use Policy, 96, 104616.
Yuslaini, N., Sumadinata, R. W. S., Fedryansyah, M., Abdillah, A., Prianto, A. L., & Febriyanti, D. (2023). Sustainable investment strategies in the palm oil industry in Indonesia. Journal of Infrastructure, Policy and Development, 7(3).
Yuslaini, N., Suwaryo, U., Deliarnoor, N. A., & Sri Kartini, D. (2023). Palm oil industry and investment development in Dumai City, Indonesia: A focus on local economy development and sustainability. Cogent Social Sciences, 9(1), 2235780.
Zhan, J. X., & Santos-Paulino, A. U. (2021). Investing in the Sustainable Development Goals: Mobilization, channeling, and impact. Journal of International Business Policy, 4(1), 166–183.
Zhang, X., Tan, Y., Hu, Z., Wang, C., & Wan, G. (2020). The trickle‐down effect of fintech development: From the perspective of urbanization. China & World Economy, 28(1), 23–40.
Downloads
Published
How to Cite
Issue
Section
License
Please find rights and licences in Journal of Contemporary Governance and Public Policy. By submitting articles or article manuscripts, the author agrees to this policy. No special documents are required.
1. Licence
Use of articles will be governed by the Creative Commons Attribution-ShareAlike licence as currently displayed on the Creative Commons Attribution-ShareAlike 4.0 International Licence (CC BY-SA).
2. Author(s)' Warranties
The author warrants that the article is original, written by the stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third-party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User Rights
The spirit of Journal of Contemporary Governance and Public Policy is to disseminate articles published as freely as possible. Under the Creative Commons licence, Journal of Contemporary Governance and Public Policy permits users to copy, distribute, display, and perform the work. Users will also need to attribute authors and Journal of Contemporary Governance and Public Policy for distributing works in journal and other media of publication.
4. Rights of Authors
Authors retain all their rights to the published works, such as (but not limited to) the following rights:
1. Copyright and other proprietary rights relating to the article, such as patent rights,
2. The right to use the substance of the article in future works, including lectures and books,
3. The right to reproduce the article for own purposes,
4. The right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal (Journal of Contemporary Governance and Public Policy).
5. Co-Authorship
If the article was jointly prepared by more than one author, any author submitting the manuscript warrants that he or she has been authorised by all co-authors to agree on this copyright and licence notice (agreement) on their behalf and agrees to inform his or her co-authors of the terms of this policy. Journal of Contemporary Governance and Public Policy will not be held liable for anything that may arise due to the author's internal dispute. Journal of Contemporary Governance and Public Policy will only communicate with the corresponding author.
6. Royalties
Being an open-access journal and disseminating articles for free under the Creative Commons licence term mentioned, the author(s) are aware that Journal of Contemporary Governance and Public Policy entitles the author(s) to no royalties or other fees.
7. Miscellaneous
Journal of Contemporary Governance and Public Policy will publish the article (or have it published) if the editorial process is successfully completed and the Journal or its sublicensee is obliged to proceed with its publication. The Journal also reserves the right to conform the article to its preferred style of punctuation, spelling, capitalisation, and usage.
