Track: Sustainability

Abstract

The palm oil industry in Indonesia is one of the largest producers of palm oil in the world, and is an important contributor to the Indonesian economy. However, the industry is facing increasing pressure from environmental and social concerns, such as deforestation, land degradation, and human rights violations. A circular economy offers a potential solution to these issues, as it promotes the efficient use of resources and the reduction of waste. Therefore, this research was conducted to identify the drivers and barriers to the implementation of a circular economy in the palm oil industry in Indonesia. This paper examines the drivers and barriers using CVI and modified kappa method by interviewing a few experts. To achieve this, 32 drivers and 38 barriers were asked to the experts and the results showed that 27 drivers and 3 barriers were valid. The results of the study showed that the most important drivers were the reduction of costs, regulations and government policies, and social pressure. The most important barrier identified was the lack of understanding of the circular economy, lack of economic benefits, and financial constraints. The results of this study provide valuable insights into the factors that need to be addressed to successfully implement a circular economy in the palm oil industry in Indonesia. The findings of this study can be used to inform policymakers and stakeholders of the key drivers and barriers that need to be addressed in order to successfully implement a circular economy in Indonesia’s palm oil industry.