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Data penduduk total di ndoensia bps1/8/2023 As a result, many of Indonesia’s oil palm smallholders face compliance barriers due to informality and poor production practices, and threaten to become alienated from formal markets, which could in turn lead to a bifurcation of the oil palm sector. Because of public concern over the poor social and environmental performance of the sector, many governments, companies and consumers are attempting to clean up the value chain through self-regulatory commitments, certification and public regulation. The dynamics within Indonesia’s oil palm sector illustrate well the types of competitive challenges smallholders face in their integration into global agro-commodity chains. This participation however is increasingly being shaped by differentiated capabilities to comply with emerging public and private quality and safety standards. ![]() Processes of globalization have generated new opportunities for smallholders to participate in profitable global agro-commodity markets.
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