Institutional Development in the Supply Chain System of Oil Palm Agroindustry in South Kalimantan
Corresponding email: hheryani@ulm.ac.id
Published at : 01 Jul 2022
Volume : IJtech
Vol 13, No 3 (2022)
DOI : https://doi.org/10.14716/ijtech.v13i3.4754
Heryani, H., Legowo, A.C., Yanti, N.R., Marimin, Raharja, S., Machfud, Djatna, T., Martini, S., Baidawi, T., Afrianto, I., 2022. Institutional Development in the Supply Chain System of Oil Palm Agroindustry in South Kalimantan. International Journal of Technology. Volume 13(3), pp. 643-654
| Hesty Heryani | Department of Agro-industrial Technology, Faculty of Agriculture, University of Lambung Mangkurat, Banjarbaru 70714, Indonesia |
| Agung Cahyo Legowo | Department of Agro-industrial Technology, Faculty of Agriculture, University of Lambung Mangkurat, Banjarbaru 70714, Indonesia |
| Noor Ridha Yanti | Department of Agro-industrial Technology, Faculty of Agriculture, University of Lambung Mangkurat, Banjarbaru 70714, Indonesia |
| Marimin | Department of Agro-industrial Technology, Faculty of Agricultural Engineering and Technology, Bogor Agricultural University, Bogor 16002, Indonesia |
| Sapta Raharja | Department of Agro-industrial Technology, Faculty of Agricultural Engineering and Technology, Bogor Agricultural University, Bogor 16002, Indonesia |
| Machfud | Department of Agro-industrial Technology, Faculty of Agricultural Engineering and Technology, Bogor Agricultural University, Bogor 16002, Indonesia |
| Taufik Djatna | Department of Agro-industrial Technology, Faculty of Agricultural Engineering and Technology, Bogor Agricultural University, Bogor 16002, Indonesia |
| Sri Martini | Department of Agro-industrial Technology, Faculty of Agricultural Engineering and Technology, Bogor Agricultural University, Bogor 16002, Indonesia |
| Taufik Baidawi | Department of Agro-industrial Technology, Faculty of Agricultural Engineering and Technology, Bogor Agricultural University, Bogor 16002, Indonesia |
| Irawan Afrianto | Department of Computer Science, Faculty of Mathematics and Natural sciences, Bogor Agricultural University, Bogor 16002, Indonesia |
Developing
oil palm agroindustry in South Kalimantan involves internal and external
factors for its sustainability. The long distance of each stakeholder requires
a digitally connected system. The research aimed at identifying criteria,
sub-criteria, and alternatives in the developed network model, determine the
sensitivity to determine the relevance of actor's role, determine the
effectiveness and efficiency before and after implementation of the system, and
analyse the level of certainty and importance of assumptions developed. The
methods used were surveys, focus group discussions, and questionnaires. Experts
in the Analytical Network Process (ANP) method were from academia, business,
society and government. Supply Chain Operation Reference (SCOR) method to
analyse supply chain performance involved 178 respondents. The level of
certainty and importance of assumptions was with Strategic Assumption Surfacing
and Testing (SAST). The results of the analysis show there was an
interdependence between the sub-criteria on the specified criteria and
alternatives applied to achieve the goals. Pairwise comparisons showed the
highest sub-criteria cluster was the replanting program with a weight of 0.662,
for alternative cluster the highest priority weight in the system involving all
actors playing a role was 0.391, with relevant sensitivity test results. The
results of the analysis of effectiveness and efficiency before and after
implementation of the system showed an increase in SCOR value for all actors.
The results of SAST analysis were in Quadrant I with the highest level of
importance and certainty of 7.6 meaning very important and certain. The
implications of the research results can be seen in fostering the use of
technology in realizing transparency, especially regarding the price, quality,
and traceability of fresh fruit bunches, the realization of a monitoring system
for policymakers and capital assistance for independent oil palm smallholders.
Analytical Network Process (ANP); Effectiveness; Efficiency; Strategic Assumption Surfacing and Testing (SAST); Supply Chain Operation Reference (SCOR)
The agricultural
sector, especially the oil palm plantation sub-sector, is experiencing rapid
growth and involves the community, especially independent oil palm
smallholders, on a large
scale. On the other hand, the development of the CPO processing industry and its derivatives is in line with the growth in
plantation areas and palm oil production as a source of raw
materials for the cooking oil industry, industrial oil (cocoa butter
substitute, margarine/shortening, oleo chemical, and soap) and fuel (biodiesel)
(Lee et al., 2014; Hasibuan et al., 2018; Hidayati et al., 2018; Syahza & Asmit, 2019).
Based on the
results of pairwise comparisons on the network model, the highest priority
weight for the sub-criteria cluster, namely the replanting program on
government regulatory criteria, is 0.662. The alternative strategy with the
highest priority weight is a system which involves all actors playing a role of
0.391, a policy brief refers to an area of 0.326, arrangements between parties
involving traders with standard prices are set at 0.200 for third place and
arrangements between parties without involving Traders are 0.081 in the final
rank. The
sensitivity test results of actor involvement as a priority in the network
model are relevant. The results
of the analysis of effectiveness and efficiency before and after implementation
show an increase in the SCOR value for all actors. The results of the SAST
analysis are in quadrant I with the highest level of importance and certainty
at a value of 7.6 which means very important and definite. It means that the
assumptions applied are relevant in the implications of FFB price incentive
policies, funding support from the government and the private sector in
realizing the STDB program for independent oil palm smallholders, technology
utilization development programs in an effort to achieve transparency,
particularly regarding the price and quality of FFB, traceability,
establishment of monitoring system for policymakers regarding the application
of benchmark prices in every transaction involving actors in the field. The
limitation of the research is because it is based on IoT, of course, it
requires an internet network and assistance so that the system is felt to be
more user friendly.
To the Ministry of
Finance and the Oil Palm Plantation Fund Management Agency (BPDPKS), we would like to pass our gratitude
for the fund which has been entrusted to the Research Team through the cooperation agreement
number: PRJ-17/DPKS/2020 dated June 15, 2020 and the Adendum of the cooperation
agreement number: PRJ- 7/DPKS/2021 dated June 14, 2021, in carrying out the Pilot
Project Implementation of
Performance Assessment Information System and Institutional Strengthening of
Oil Palm Supply Chain in Riau, Jambi and South Kalimantan Provinces.
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