@unri.ac.id
Faculty of Engineering
Universitas Riau
Sustainability is a key issue for the global palm oil industry. Several major environmental and social issues continue to overshadow sustainability efforts: continued deforestation due to plantation expansion, a lack of incentives and sustainable land development, and worker exploitation. This situation reflects stagnant progress in sustainability efforts. Despite expanding oil palm plantation areas, productivity remains a problem, failing to meet established standards and even lagging behind neighboring countries like Malaysia. This decline in productivity has the potential to disrupt the supply of fresh fruit bunches (FFB), reducing raw material availability and triggering supply chain volatility. Uncertainty about demand and supply complicates the prediction of overall industry capacity requirements, increasing operational, financial, and reputational risks. The urgency of this research is to improve the supply chain network of sustainable smallholder plantations by considering risk
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