This study aims to examine and challenge the impact of local government policy governance on the oil palm plantation sector in Riau Province, Indonesia. It was discovered that 1,628 million hectares of illegal oil palm plantations are located within forest areas. Plantation area and crop harvest areas are declining due to the increase in damaged old plants, low productivity of plantation crops, inadequate facilities and infrastructure conditions, low technology application, plantation business licensing, limited downstream plantation industry and marketing, assistance in changing the attitudes, behavior, and skills of farmers. The methodology used was exploratory qualitative to explore this topic, and the determination of research topics was conducted using Biblioshiny application analysis. Then, the data was analyzed using Nvivo 12 Plus software. The results of this study discovered that the policy governance of the oil palm plantation sector as a leading commodity in Riau Province, Indonesia, is influenced by three dimensions: firstly, the actor dimension; secondly, the structural dimension; and third, the empirical dimension of governance. This research contributes as a knowledge reference to oil palm plantations.
This study aims to investigate what influences local workers over the age of 40 to work and stay employed in oil palm plantations. 414 individuals participated in a face-to-face interview that provided the study’s primary source of data. Exploratory Factor Analysis was used to analyse the given data. The study revealed that factors influencing local workers over the age of 40 years to leave or continue working in oil palm plantations can be classified as income factors, internal factors and external factors. The income factor was the most significant factor as the percentage variance explained by the factor was 26.792% and Cronbach Alpha was high at 0.870. Therefore, the study suggested that the oil palm plantation managements pay more attention to income elements such as basic salary, wage rate paid to the workers and allowance given to the workers since these elements contribute to the monthly total income received by the workers and in turn be able to attract more local workers to work and remain in the plantations.
This paper focuses on examining the relationship among organizational factor, work-related factor, psychological factor, personal factor and the commitment of oil palm smallholders toward Malaysian Sustainable Palm Oil (MSPO) certification. The study employed a descriptive research methodology and a structured survey instrument to gather data from oil palm smallholders (n = 441) through simple random sampling technique. Data analysis was conducted using SPSS and partial least square structural equation modeling (PLS-SEM) to test the proposed relationship. The findings reveal that organizational factors significantly impact the affective (β = 0.345, p < 0.05), normative (β = 0.424, p < 0.05), and continuance commitment (β = 0.339, p < 0.05) of oil palm smallholders. Additionally, work-related factors show a substantial effect on these same dimensions of commitment; affective (β = 0.277, p < 0.05), normative (β = 0.263, p < 0.05), and continuance (β = 0.413, p < 0.05). Psychological factors significantly impact the affective (β = 0.216, p < 0.05) and normative commitment (β = 0.146, p < 0.05), with no statistically significant influence on continuance commitment. Conversely, personal factors exhibit limited influence, affecting only continuance commitment (β = 0.104, p < 0.05) to a minor degree, with no statistically significant impact on affective and normative commitment. The present research is among the few empirical findings that have examined the oil palm smallholders’ commitment towards MSPO certification. By emphasizing the role of organizational and work-related factors, the study offers valuable insights for stakeholders within the oil palm sector, highlighting areas to enhance smallholder commitment toward sustainability standards. Consequently, this study contributes a unique perspective to the existing body of literature on sustainable practices in the oil palm industry.
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