Examining the implementation of extended producer responsibility within the palm oil industry: Challenges and opportunities for sustainable practices
DOI:
https://doi.org/10.61511/aes.v2i2.2025.1479Keywords:
awareness, extended producer responsibility, plastic pollution, plastic reduction, sustainable packagingAbstract
Background: Indonesia, as the world's leading palm oil producer, significantly contributes to the global supply and national GDP. However, the industry's expansion has led to increased plastic waste generation, exacerbating environmental and health concerns due to inefficient waste management. Extended Producer Responsibility (EPR) has been proposed as a strategic solution to improve sustainability in the sector. Method: This study conducts a systematic review of sustainability reports from Indonesian palm oil companies, analyzing corporate approaches to plastic pollution, sustainable packaging, and EPR. Data were collected from company websites and linked packaging-related sections, followed by a content analysis to assess commitments to these key areas. Findings: The analysis reveals a divide within the sector: while half of the major companies acknowledge plastic pollution in their reports, the other half lack awareness or action. Sustainable packaging initiatives remain insufficient to meet Indonesia’s target of reducing plastic usage by 30% by 2029. Additionally, corporate commitment to EPR is limited to only a small portion of the industry. Conclusion: The study highlights the need for stronger regulatory enforcement and corporate accountability in addressing plastic waste management. A broader adoption of EPR and sustainable packaging practices is crucial for the palm oil sector to align with national and global environmental goals. Novelty/Originality of this Study: This study provides a critical assessment of plastic waste management in the Indonesian palm oil sector, offering insights into corporate sustainability commitments. By evaluating EPR adoption and sustainable packaging practices, it identifies gaps and areas for policy and industry improvement.
References
Amin, S., Strik, D., & van Leeuwen, J. (2022). A multi-method approach to circular strategy design: Assessing extended producer responsibility scenarios through material flow analysis of PET plastic in Jakarta, Indonesia. Journal of Cleaner Production, 367, 132884. https://doi.org/10.1016/j.jclepro.2022.132884
Apical. (2022). Sustainability report 2022. Apical.
Asian Agri. (2022). Sustainability report 2022. Asian Agri.
Bakrie Sumatera Plantations. (2022). Sustainability report 2022. Bakrie Sumatera Plantations.
Bumitama Agri Ltd. (2022). Sustainability report 2022. Bumitama Agri Ltd.
Cargill. (2018). Corporate responsibility and sustainable development 2017-18. Cargill.
Casagrande, N., Silva, C. O., Verones, F., Sobral, P., & Martinho, G. (2024). Ecotoxicity effect factors for plastic additives on the aquatic environment: A new approach for life cycle impact assessment. Environmental Pollution, 341, 122935. https://doi.org/10.1016/j.envpol.2023.122935
Citra Borneo Utama. (2022). Sustainability report 2022. Citra Borneo Utama.
Dobbs, S., & van Staden, C. (2016). Motivations for corporate social and environmental reporting: New Zealand evidence. Sustainability Accounting, Management and Policy Journal, 7(3), 449–472. https://doi.org/10.1108/SAMPJ-08-2015-0070
Ecogreen Oleochemicals. (2022). Sustainability report 2022. Ecogreen Oleochemicals.
First Resources. (2022). Sustainability report 2022. First Resources.
Given, L. M. (Ed.). (2008). The Sage encyclopedia of qualitative research methods. Sage publications.
Golden Agri-Resources Ltd. (2022). Sustainability report 2022. Golden Agri-Resources Ltd. https://www.goldenagri.com.sg/id/sustainability/sustainability-report/
Goodhope. (2022). Sustainability journey 2022. Goodhope.
Korindo. (2021). Sustainability report 2021. Korindo.
Kozlowski, A., Searcy, C., & Bardecki, M. (2015). Corporate sustainability reporting in the apparel industry: An analysis of indicators disclosed. International Journal of Productivity and Performance Management, 64(3), 377-397. https://doi.org/10.1108/IJPPM-10-2014-0152
Landrum, N. E., & Ohsowski, B. (2018). Identifying worldviews on corporate sustainability: A content analysis of corporate sustainability reports. Business Strategy and the Environment, 27(1), 128–151. https://doi.org/10.1002/bse.1989
Lifset, R., Kalimo, H., Jukka, A., Kautto, P., & Miettinen, M. (2023). Restoring the incentives for eco-design in extended producer responsibility: The challenges for eco-modulation. Waste Management, 168, 189–201. https://doi.org/10.1016/j.wasman.2023.05.033
Lock, I., & Seele, P. (2016). The credibility of CSR (corporate social responsibility) reports in Europe: Evidence from a quantitative content analysis in 11 countries. Journal of Cleaner Production, 122, 186–200. https://doi.org/10.1016/j.jclepro.2016.02.060
Musimas. (2022). Sustainability report 2022. Musimas.
Peng, J., Shi, X., & Tong, X. (2023). Extended producer responsibility for low carbon transition in the automobile industry. Circular Economy, 2(2), 100036. https://doi.org/10.1016/j.cec.2023.100036
Phelan, A., Meissner, K., Humphrey, J., & Ross, H. (2022). Plastic pollution and packaging: Corporate commitments and actions from the food and beverage sector. Journal of Cleaner Production, 331, 129827. https://doi.org/10.1016/j.jclepro.2021.129827
Pires, A., Martinho, G., Ribeiro, R., Mota, M., & Teixeira, L. (2015). Extended producer responsibility: A differential fee model for promoting sustainable packaging. Journal of Cleaner Production, 108, 343–353. https://doi.org/10.1016/j.jclepro.2015.07.084
PT Astra Agro Lestari Tbk. (2022). Sustainability report 2022. Astra Agro Lestari.
PT Austindo Nusantara Jaya Tbk. (2022). Sustainability report 2022. ANJ.
PT Dharma Satya Nusantara Tbk. (2022). Laporan keberlanjutan 2022. DSN Group. https://dsn.co.id/id/esg/sustainability-report/
PT Mahkota Group Tbk. (2022). Annual report - Sustainability report 2022. Mahkota Group Palm Oil Mill and Plantation.
PT Perkebunan Nusantara III (Persero). (2022). Sustainability report 2022. Perkebunan Nusantara.
PT PP London Sumatra Indonesia Tbk. (2022). Sustainability report 2022. LONSUM.
PT Salim Ivomas Pratama Tbk. (2022). Annual report 2022. SIMP Salim Ivomas Pratama.
Redko, V., Wolska, L., Potrykus, M., Olkowska, E., Cieszyńska-Semenowicz, M., & Tankiewicz, M. (2024). Environmental impacts of 5-year plastic waste deposition on municipal waste landfills: A follow-up study. Science of The Total Environment, 906, 167710. https://doi.org/10.1016/j.scitotenv.2023.167710
Roca, L. C., & Searcy, C. (2012). An analysis of indicators disclosed in corporate sustainability reports. Journal of Cleaner Production, 20(1), 103–118. https://doi.org/10.1016/j.jclepro.2011.08.002
Sampoerna Agro. (2022). Annual report 2022. Sampoerna Agro.
Sawit Sumbermas Sarana. (2022). Sustainability report 2022. Sawit Sumbermas Sarana.
Shigetomi, Y., Ishimura, Y., & Yamamoto, Y. (2020). Trends in global dependency on the Indonesian palm oil and resultant environmental impacts. Scientific Reports, 10(1), 20624. https://doi.org/10.1038/s41598-020-77458-4
Sime Darby. (2023). Annual report 2023. Sime Darby.
Stewart, R., & Niero, M. (2018). Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast-moving consumer goods sector. Business Strategy and the Environment, 27(7), 1005–1022. https://doi.org/10.1002/bse.2048
Triputra Agro Persada. (2022). Sustainability report 2022. Triputra Agro Persada.
Tumu, K., Vorst, K., & Curtzwiler, G. (2023). Global plastic waste recycling and extended producer responsibility laws. Journal of Environmental Management, 348, 119242. https://doi.org/10.1016/j.jenvman.2023.119242
Wilmar. (2022). Annual sustainability report 2022. Wilmar.
Yaro, N. S. A., Sutanto, M. H., Habib, N. Z., Napiah, M., Usman, A., Jagaba, A. H., & Al-Sabaeei, A. M. (2022). Application and circular economy prospects of palm oil waste for eco-friendly asphalt pavement industry: A review. Journal of Road Engineering, 2(4), 309-331. https://doi.org/10.1016/j.jreng.2022.10.001
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2025 A Azis Kurniawan, Muflihatun Nahriyah
This work is licensed under a Creative Commons Attribution 4.0 International License.
