Implementation of environmental policies by six oil palm plantation companies in South Sumatra

South Sumatra Province, situated in Indonesia, ranks as the sixth-largest palm oil producer in the country, boasting an extensive plantation area of 1.2 million hectares. Unfortunately, the province has faced significant environmental challenges in recent times due to inadequate environmental management and recurring forest fires. These issues have resulted in adverse effects on the local ecosystem. Consequently, it becomes crucial to conduct a gap analysis of the existing environmental policies and their implementation by oil palm plantation companies operating in South Sumatra Province. The objective of this research is to assess the environmental management practices of companies operating in the oil palm industry in South Sumatra Province, specifically focusing on their adherence to the Indonesia Sustainable Oil Palm (ISPO) criteria. The study aims to evaluate how effectively these companies have implemented environmental policies and identify any disparities or gaps that may exist between the policies and their actual implementation. To achieve this, the research employs a regulatory gap analysis method. The oil palm plantation company in South Sumatra Province has met 105 out of the 126 environmental indicators specified in the ISPO criteria. In general, the implementation of environmental policies on these plantations has achieved an 85% score, indicating a successful fulfillment of the policies outlined by Indonesia Sustainable Palm Oil (ISPO). The relatively low gap value of 0.15 further confirms this success, signifying that the environmental policies have been effectively and adequately implemented in accordance with ISPO’s guideline..


Introduction
Sumatra serves as the initial hub of development and is the primary focal point for oil palm plantations in Indonesia [1].These plantations hold significant importance and play a strategic role in the socioeconomic well-being of communities residing in several provinces on the island, particularly in South Sumatra Province.According to [2], they serve as a vital source of income for over 1.3 million families, benefiting approximately 4.2 million individuals in South Sumatra Province.Moreover, the oil palm plantations make a substantial contribution to Indonesia's Gross Regional Domestic Product (GRDP), accounting for 45.02% of it, and play a crucial role in generating foreign exchange through non-oil and gas exports, contributing 87.58% of Indonesia's total non-oil and gas export earnings [3] [4].
As mentioned in [5], the oil palm plantation area in Indonesia, particularly on the island of Sumatra, has witnessed a significant increase of 25.42% from 2010 to 2020, resulting in a nationwide oil palm cover area of 16.3 million hectares.In the context of palm oil production, South Sumatra Province ranks as the sixth-largest producer in Indonesia, following Riau, West Kalimantan, Central Kalimantan, North Sumatra, and East Kalimantan, boasting an area of 1.2 million hectares [6].
However, this expansion of oil palm plantations has led to environmental issues in recent years, particularly in South Sumatra Province.The lack of responsible environmental management practices and recurring forest fires have had negative consequences on the environment.As a result, conducting a gap analysis of the environmental policies and their implementation in oil palm plantations within South Sumatra Province becomes imperative [7].
The South Sumatra Provincial Government has formulated policies and regulations to oversee environmental management, particularly evident in Governor Regulation No. 54 of 2015, which outlines the roles and responsibilities of the South Sumatra Provincial Environment Agency.This regulation aligns with the objectives set forth in Law No. 32 of 2009, which aim to preserve the environment, prevent environmental degradation, ensure the availability of natural resources for present and future generations, and uphold the principles of sustainable development.Additionally, there exists Regulation of the Minister of Agriculture of Indonesia No. 11 of 2015, which pertains to ISPO (Indonesia Sustainable Palm Oil) and its implementation.The implementation of ISPO certification has served as a catalyst for oil palm plantation businesses to adopt more sustainable practices.This certification encourages them to adhere to the principles and criteria outlined in the ISPO standard.As of June 2020, a total of 621 ISPO certificates had been issued, encompassing an area of 5,450,329 hectares of oil palm plantations, representing approximately 38.03% of the total oil palm plantation area in Indonesia.
Despite the efforts made by various stakeholders involved in the management of oil palm plantations to implement environmental policies, numerous environmental challenges persist in the region, particularly in Banyuasin and Musi Banyuasin Regencies.Despite the implementation of these policies, there are still significant environmental issues, giving rise to various disasters.The causes of these environmental damages and disasters are multifaceted and stem from a variety of factors.The observed situation can be attributed to a discrepancy between the formulated environmental policies and their actual implementation in the field.These indications highlight the necessity of conducting a comprehensive gap analysis to assess the alignment between environmental policies and their practical application in oil palm plantations within South Sumatra Province [8].The research's primary objectives include evaluating the environmental management practices of companies operating in this region based on the Indonesian Sustainable Palm Oil (ISPO) criteria.Furthermore, the study aims to analyze the implementation of environmental policies and scrutinize the extent of the implementation gap concerning these policies in the eastern part of South Sumatra Province.

Study area
The research was carried out in the Banyuasin and Musi Banyuasin Regencies of South Sumatra Province, Indonesia, spanning from July 2019 to April 2020.Six oil palm plantation companies situated in South Sumatra Province were chosen for this study, all of which were based in the administrative regions of Banyuasin and Musi Banyuasin Regencies.Specifically, the six companies under investigation were Company A, B, D, E, and F, situated in Musi Banyuasin Regency, and Company C, located in Banyuasin Regency (Fig. 1).The respondents for this study were selected using a purposive sampling method, focusing on six oil palm plantation companies that met specific criteria.The chosen companies had to possess an oil palm plantation area exceeding 3000 hectares, and they willingly consented to participate as respondents in the research.The selection process involved in-person meetings with the researchers, ensuring that the chosen companies matched the defined characteristics and could serve as reliable sources of data.As described in [9], purposive sampling is a deliberate technique employed to select samples based on the specific aims and objectives of the research, with the assumption that the chosen individuals or entities possess the necessary information required for the study.

Data Collection Technique
The research utilized both primary and secondary data sources.Primary data were collected directly from respondents and informants through surveys, observations, and in-depth interviews.These methods allowed the researchers to obtain firsthand information from the individuals and gain valuable insights into the subject matter.On the other hand, secondary data were gathered from literature studies and regional monograph data, enabling the researchers to access existing information and previous studies relevant to the research topic.Combining primary and secondary data sources provided a comprehensive and well-rounded foundation for the study.

Data Processing and Analysis Techniques
The Performance Analysis is conducted to assess how well the company has implemented environmental policies, which are described in a descriptive manner by referencing Regulation of the Minister of Agriculture Number 11 / Permentan / OT.140 / 3/2015 concerning Indonesian Sustainable Palm Oil Plantation Guidelines (Regulation of the Minister of Agriculture of Indonesia No. 11 of 2015) [10].The data is analyzed and compared to determine the alignment between the established policies and their actual implementation in the field.This comparison is then made across different companies, utilizing data gathered from survey activities, which is further processed, analyzed, and presented in tabular or matrix form, both descriptively and comparatively [11].

Gap Analysis
The gap analysis was conducted employing the regulatory gap analysis method, which involves evaluating the performance of the policy by comparing the intended inputs with the actual implementation in the field [12][13].The implementation score is calculated using the following formula: Table 1 shows the scoring calculation and thepercentage for each criterion.Table 1 shows the implementation features related to company compliance with oil palm plantation environmental policies, which consist of five ranges, in which the range 0-50 means that the company is not being carried out in accordance with existing policies.The company still needs special training in its application, 51-75 means that there are still requirements or policies that have not been implemented properly, 76-89 means that some requirements or policies have been implemented but are still not consistent, 90-95 means the requirements or policies have been implemented properly but not yet consistent and 96-100 means the requirements or policies have been implemented properly.
The gap is determined using the formula below: (2) where: The gap criteria are obtained according to the criteria in Table 2 [13][14]: Table 2.The gap scoring criteria Score Criteria < 0.5 The implementation of the policy has proven to be successful, aligning with the initial plan and effectively addressing the environmental challenges present within the community.
> 0.5 The policy implementation has encountered difficulties and has not achieved the desired success; therefore, it necessitates a thorough evaluation to identify the reasons for its shortcomings.

Evaluate the performance of Environmental management in Implementing ISPO
The Indonesian Sustainable Palm Oil (ISPO) necessitates all oil palm plantation companies in Indonesia to adhere to each principle or criterion [10][15].Compliance with ISPO is compulsory for all such companies [16][17].In this study, the analysis focuses on evaluating the environmental management performance of six companies based on ISPO principles 1, 3, 4, and 6.These companies operate in the Banyuasin and Musi Banyuasin Regencies and have implemented various ISPO criteria indicators.However, it is worth noting that two out of the four companies have not yet obtained ISPO certification.Detailed results of the evaluation of these oil palm plantation companies' ISPO implementation performance are presented in Table 3.The implementation of ISPO serves as a testament to the commitment of plantation business operators in Indonesia to adhere to the relevant laws and regulations while embracing the principles of sustainable oil palm plantation management.As indicated in Table 3, the oil palm plantation companies in South Sumatra Province have achieved compliance with 105 out of 126 environmental indicators outlined in the ISPO criteria.However, some indicators remain unfulfilled by certain companies, particularly those concerning certification fulfillment, biodiversity preservation, and related institutional aspects of oil palm plantations.Consequently, these companies need to take corrective measures to enhance their environmental management performance [10].

Comparative implementation of environmental policies between companies
Table 4 presents a summarized comparison of the environmental policy implementation among oil palm plantation companies in South Sumatra Province, focusing on ISPO principles 1, 3, 4, and 6, as per the Regulation of the Minister of Agriculture of Indonesia in 2015.Principle 1 pertains to the legality of estate crops, encompassing the licensing of plantation locations, permits for plantation businesses, environmental permits for plantation management, and certification.According to Table 4, PT B has fully complied with the legality aspect of the plantation business, achieving a 100% implementation score.However, other companies still have deficiencies in fulfilling the certification requirements.Average implementation score (%) 85 Principle 3 concerns the safeguarding of primary natural forests and land use, and it is evident that almost all companies have implemented it effectively, as indicated by a high implementation score of 100%.These companies have demonstrated successful measures in preventing and addressing land and forest fires appropriately, along with proper peatland management practices.However, there is a deficiency observed in PT D's peatland management, specifically in the area of efforts to restore the peat ecosystem.This deficiency can be attributed to two reasons: first, PT D has not complied with the recovery orders issued by the Ministry of Environment and Forestry (KLHK), and secondly, PT D might not have received any recovery orders at all [18].Principle 4 deals with environmental management and monitoring, following Government regulations No. 27 of 2012.It is evident that all companies have performed well in implementing this principle, as demonstrated by a commendable implementation score of 100%.Some companies have already established annual plans for forest rehabilitation, managing High Conservation Value (HCV) and High Carbon Stock (HCS) lands, and conducting comprehensive environmental monitoring, which includes assessing soil quality, water quality, and air quality both in their factories and plantations.Furthermore, all companies have diligently fulfilled their reporting obligations, providing periodic updates on the realization of their environmental management activities.However, PT C and PT E still have some areas of improvement, as they have not yet developed annual forest rehabilitation plans and environmental management plans.These shortcomings should be addressed to enhance their environmental performance and compliance with the respective regulations.
Principle 6 focuses on social responsibility and community economic empowerment, as stipulated by Government regulations No. 27 of 2012 [19].It is evident that most companies have performed admirably in implementing this principle, with PT B, PT E, and PT F achieving a remarkable implementation score of 100%, while PT A, PT C, and PT D have achieved an 80% score.Overall, the implementation of environmental policies in the eastern province of Sumatra has reached a percentage of 85%, indicating that many requirements or policies have been successfully implemented.However, there are still areas where consistency needs improvement, and some policies might not have been fully and consistently applied across all companies.

Gap analysis of environmental policy
Table 5 provides a gap analysis of environmental policies for each individual oil palm plantation company in South Sumatra Province [12] [13].As per the findings presented in Table 6, the gap value in the implementation of environmental policies on oil palm plantations in the province is 0.15.This value signifies a low gap, indicating that the implementation of environmental policies has been successful, aligning with the planned objectives, and effectively addressing the existing issues within the community [13].The analysis also reveals that the gap or difference in environmental policy implementation among oil palm plantations in the eastern region of South Sumatra Province is relatively low, with a value of 0.15 or below 0.50.This low gap signifies that the policies have been successfully implemented as planned, effectively addressing environmental issues within the community.
To further improve the quality of environmental policy implementation, companies are advised to issue Standard Operating Procedures (SOPs) or work instructions to serve as guidelines for their practices.The survey results show varying levels of environmental policy implementation among the companies.Those companies that prioritize environmental concerns tend to exhibit better overall performance, particularly in terms of profitability and operational efficiency..

ACKNOWLEDGEMENT
The author extends sincere appreciation to the South Sumatra Provincial Environmental Agency and the private oil palm companies in South Sumatra for their valuable contribution in providing the necessary data for this research.Additionally, the author expresses gratitude to colleagues at Sumbawa Technology University for their support and assistance during the research activities.

Table 1 .
The Implementation scoring criteria.

Table 3 .
Details of the results of the performance evaluation

Table 4 .
Comparative implementation of environmental policies between companies

Table 5 .
Environmental policy gaps in each company Six oil palm plantation companies operating in South Sumatra Province have achieved compliance with 141 out of 160 indicators outlined in the ISPO criteria pertaining to the environment.However, some companies have not fulfilled certain indicators, particularly those related to certification fulfillment, biodiversity preservation, and other aspects concerning biodiversity and related institutions within the oil palm plantations.The overall score for the implementation of environmental policies in the province stands at 85%, indicating a satisfactory level of accomplishment.Nevertheless, some companies still require corrective actions to enhance their environmental management performance.