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7 Steps to Strengthen the Competitiveness of the Sustainable Palm Oil Industry Using Business Analytics

Doc. of InfoSAWIT/The professor of Sekolah Bisnis Institut Pertanian Bogor (IPB) University, Prof Arif Imam Suroso.
7 Steps to Strengthen the Competitiveness of the Sustainable Palm Oil Industry Using Business Analytics

InfoSAWIT, BOGOR –Business analytics to reinforce palm oil industrial competition could be applied in seven strategic things. If business analytics is applied, it would help (palm oil) stakeholders, including the Government of Indonesia to be more competitive and sustainable in the future.

Professor of Sekolah Bisnis Institut Pertanian Bogor (IPB) University, Prof. Arif Imam Suroso said palm oil industrial competition would need some strategic things which derived from many approach research in business analytics. In delivering professor’s scientific oration at Sekolah Bisnis IPB University, Prof. Arif explained some things to do to escalate palm oil industrial competition sustainably.

He thought, the sustainability of some government’s programs and policies, is needed still to encourage other stakeholders to develop sustainable palm oil industries. That is why the results of research by having business analytics approach would be very relevant to be used in a whole and to escalate palm oil industrial competition in the world.

“There are seven things got through business analytics proposed to help increase palm oil industrial competitively,” Prof. Arif said to InfoSAWIT, Friday (10/5/2024).

The seven things to do, according to Prof. Arif in his scientific oration, some time ago, are:

The first, the implementation of palm oil moratorium. The research from Maesaroh et al. (2018) showed that it escalated sustainable cultivation practices in Indonesia. In the implementation written by Suroso et al. (2020) emphasized that palm oil industries need to improve some aspects, such as, plant genetics, legal areas (plantations), and low enforcement. New permits in palm oil moratorium encouraged replanting program to escalate (plantation) productivity.

The second, create sustainable palm oil industrial atmosphere in the plantations. This is about to confirm the obedience on sustainable principles and criteria. Research results written by Suroso et al. (2021) showed that 53,03 percent put the economy as the main base to develop sustainable palm oil industries while the social, reached about 23,57 percent and the environmental reached about 23,19 percent. The results emphasized that the economy would be significant thing to fulfil the goals in social and environment in sustainable palm oil industries.

The third, information technology application that involved smallholders in sustainable certification process. This needs to implement information technology for them to encourage and accelerate sustainable certification process. It should be in internet – based so that the smallholders would get additional values from their cultivation practices and would directly be involved to develop sustainable palm oil industries.

The fourth, do optimize other exporter countries. This should apply big data to escalate export performance and get new exporter countries. By using business analytics from many predictions, some exporter countries would be prioritized and be developed in the future.

The fifth, escalate logistic performance to increase the exports. This is a must to make sure that trade infrastructures and logistics in international scale would be improved. The result research by Suroso et al. (2022) mentioned that the significant indicators from logistic indicators of Indonesia in palm oil and its derivative product exports, are right on time and traceability.

The sixth, adopt agricultural precision. This is also a must to confirm business analytics in palm oil plantation operational. The supervision should be for, such as, palm oil plantations, health analysis of the plants and land condition, the weather analysis and prediction, nutrients, pest and disease map, and harvest result prediction. These should apply technology of sensor, internet of things, global positioning system, drone, and satellite to get accurate data from palm oil plantations.

The seventh, reinforce downstream industries. This is about to help the government before publishing policy(ies) to encourage the downstream sectors so that Indonesia would be more competitive in the globe. The research results showed that (the government’s) policies slowed down palm oil (exports), such as, palm oil ban (some years ago); there should be organizations in downstream sectors, watching rupiah exchanges that would be positive to palm oil downstream performance from Indonesia.

“It would be very important to apply the seven things above based on business analytics in holistic ways and would encourage palm oil industrial competition in the future,” Prof. Arif said. (T1)