Triple Bottom Line Analysis and Assessment Towards Sustainable Palm Oil Plantation

Industrial Engineering Department, BINUS Graduate Program – Master of Industrial Engineering, Bina Nusantara University, Jakarta, Indonesia, 11480

^* Corresponding author: muhammad.asrol@binus.ac.id

Abstract

Palm oil agroindustry face challenge in business process sustainability. Most of the research consider all stage of business in sustainability analysis moreover less of consideration in upstream parts. This research aims to analyzes the palm oil plantation sustainability performance to provide recommendation in achieving sustainability goals for upstream business parts. This research was conducted in two most productive location in producing palm oil in the world: Sumatera and Kalimantan, Indonesia. A multi-dimensional scaling with leverage analysis were applied to assess the palm oil plantation sustainability performance and provide potential improvement recommendation. The result show that the model had successfully to analyze the sustainability performance on triple bottom line dimensions: economic, social and environment. Twenty-one indicators were assessed and found location sustainability performance on palm oil plantation. Leverage analysis provide recommendation to improve the performance, including CPO quantity loss, CPO quality loss, workers personal rights condition, corporate social responsibility, soil condition and water management.