Corporate farming model for sustainable supply chain crude palm oil of independent smallholder farmers

Independent oil palm smallholders in Indonesia contributed significantly to the sustainable of Crude Palm Oil (CPO) supply chain. On the other hand, sustainability in the process of implementing the supply chain system for independent smallholders is an issue that is extremely important for the success of the supply chain system for the CPO company. This study’s objective is to develop an alternative business model with the goal of strengthening the interaction that already exists between independent farmers and cooperatives in ensuring the existence of a supply chain for raw materials and having access to financial resources, knowledge, and technology. The selection of the research location considered several factors, including the size of the area’s oil palm plantations, the number of oil palm farmers who are self-sufficient, and the possibility of locating CPO plant. Study findings that, the new model by business canvas analysis as the upgraded model of existing model business recommended that it should be built based on the cooperative palm oil family which provides farmers with access to financial, replanting, intensification, and extensification and infrastructure by APKASINDO, BPDPKS, Bank, and other stakeholders to sustain the FFB supply chain in cooperation through a partnership program in a long-term scheme. This whole system was developed by corporate farming system based on the cooperative as the off taker of FFB farmers and develop mini plant CPO to produce cooking oil and biofuels and by product as the waste management system as the value added for farmers.