The majority of regions in Riau Province are coastal areas and many communities live on land that is dominated by peat. Peat ecosystems have unique characteristics, as they are classified as wetland areas, while also possessing regions of terrestrial land. Poor maintenance of these ecosystems can cause a variety of issues such as forest fires, drought, flooding, biodiversity loss, increasing emissions, climate change, and social community changes. The purpose of this paper is to formulate a model of peatland utilization based on local wisdom and community welfare, in an effort to support the sustainable management of peat ecosystems in Riau Province. The main commodities of the coastal community are agriculture, coconut, rubber, oil palm, sago, coffee, cocoa, areca nut. Therefore, an understanding of the use of peatlands is needed. This is to prevent damage to the peatland ecosystem, maintain biodiversity, store carbon, produce oxygen, and manage water. Policies and strategies for managing the peat ecosystem are carried out through the development of socio-economic and community culture to realize people's welfare based on local wisdom. The management and use of peatlands have contributed to the economy, even as the main source of livelihood for coastal communities. Utilization of peatlands based on local wisdom can maintain a sustainable peat ecosystem.

Purpose: This paper aims to present the development of palm oil sector and future challenge in Riau Province Indonesia, which includes sustainable plantation development. Design/methodology/approach: This research was conducted through a survey with developmental research method. The research location is in the Province of Riau, which is the potential development of oil palm plantation. The land areas of Riau are Kampar, Rokan Hulu and Kuantan Singingi, while the coastal areas are Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. The socio-economic and environmental aspects of sustainability level of palm oil plantations were analyzed using a multi-dimensional scaling approach that was modified into a Rap-Insus-Pom. Findings: Development of palmoil plantations results in land conversion, posing potential erosio. In anticipating environmental damage, the Government of Indonesia imposes the Indonesian Sustainable Palm Oil (ISPO) policy. The results of ISPO policy show that Indonesian crude palm oil products are environmentally friendly. Originality/value: This research is one of few studies that investigate the development of palm oil sector and future challenge in Riau Province, Indonesia. Riau Province still needs 13 units of palm oil mills with capacity of 60 tons per hour. Find strategies to regulate palm oil farming institutions and derivative products to enhance growth and economic development in the region and find production centers and development areas for palm oil local industries in potential regions.

Purpose: The purpose of this paper is sixfold: first, to know the ability of area carrying capacity to the development of downstream oil palm industry; second, to know the potential for the development of downstream oil palm industry in efforts to improve the community through employment and business opportunities in the regions; third, to find eco-friendly institutional arrangement strategies of oil palm farming in order to spur economic growth and development; fourth, to formulate strategies for potential environmental impact as a result of institutional arrangement and development of downstream oil palm industry, both in regional and national scope; fifth, to predict the economic multiplier effect as impact of institutional arrangement and development of oil-palm-based downstream industry; and sixth, to include production centers and development areas of oil-palm-based downstream industry in potential areas. Design/methodology/approach: Research location was in potential areas of oil palm plantation development, either in the form of plasma through state-owned enterprises (BUMN) and private-owned enterprises (BUMS), or in the form of self-supporting by community. The research locations were divided into two parts, namely the land area and the coastal area. The land area of Riau consisted of Kampar, Rokan Hulu and Kuantan Singingi Regency, while the coastal area of Riau consisted of Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir Regency. Both research areas had different productivity which was caused by differences in soil fertility. The required data were primary and secondary data. Findings: Plantation activities have increased the mobility of goods in the villages, causing plantation activities to also open business and employment opportunities for people who are able to accept these opportunities. Since post-1998 crisis, the growth of oil palm plantation area in Riau increased sharply, namely in 1998, the area of oil palm plantations was 901,276 ha, in 2012, 1,119,798 ha and increased to 2,103,175 ha at the end of 2017. Through economic activities that produce goods and services required during the plantation process and the development, downstream industries will have backward linkages. The development of oil palm plantations in Riau has had an impact on economic activities in rural areas. The result of the research in the field is that the average income of farmers in the plantation subsector (especially oil palm) is Rp4,576,696 per month or $5,781.09 per year. The impact on investment in the estate subsector has been felt by rural communities. This condition also affects the purchasing power of the people, resulting in the increase of mobility of goods and people. During the period 2009–2016, rural communities enjoyed a high level of prosperity. During this period, the price of fresh fruit bunch at the farm level was quite profitable. On the other hand, the production of the plantation area also increased compared to the previous period. The impact of rising prices and increasing production of farmers is that the farmers’ welfare index in the countryside had a positive value of 0.43. This index showed the increase of farmers’ welfare from the previous period by 43 percent. Originality/value: There are few previous studies which have comprehensively and specifically reviewed the regional economic empowerment through institutional arrangement and development of oil-palm-based downstream industry. The development of oil palm plantations aims to eliminate poverty and underdevelopment, especially in rural areas. In addition, it also pays attention to equity. In broad sense, agricultural development which is based on plantations aims to improve the welfare of the community so that there is a change in the pattern of life of the surrounding community. On the other hand, the success of plantation development that is based on oil palm agribusiness is expected to reduce income inequality between community groups and between regions.

Purpose: The purpose of this paper is to develop strategies for potential environmental impacts as a result of institutional arrangement and development of oil palm downstream industry both regionally and nationally. Design/methodology/approach: The research location is in the areas potential for oil palm plantation development, either by plasma through BUMN and BUMS or self-supporting by the society. The research location will be divided into two parts, namely, the land area and the coastal area. The Riau land areas are Regency of Kampar, Rokan Hulu, and Kuantan Singingi, while Riau coastal areas are Regency of Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. Both research areas have different productivity due to the different soil fertility levels. The sustainability level of oil palm plantation from the socio-economic and environmental aspects is analyzed using the multi-dimensional scaling approach modified into Rapid Appraisal-Index Sustainability of Palm Oil Management. Findings: In Riau Province, the development of oil palm is quite rapid. This is reasonable for several reasons which include the following supporting factors: the geographical condition of the Riau region is very supportive; the high demand for palm oil derivative products; the existence of market guarantee for oil palm farmers; the higher income oil palm generates than other plantation crops; and the relatively flat area. Most of the problems faced by oil palm farmers are the use of less good seeds, the length of the fruit laying at the location of the plantation, the inadequate production road, the relatively far distance to palm oil mill (POM) (National Agency of Drug and Food Control), the tendency of determining the unilateral revenue of the POM, the collectively measurement of revenue and the general revenue information. The development of oil palm plantations has created an entrepreneurial capability for farmers who are able to capture business opportunities in the agricultural sector, especially the plantation sub-sector. Originality/value: The originality of this paper shows the comprehensively control strategy, potential of environmental impact and palm oil plantation. The method used for data collection was rapid rural appraisal method because accurate information is needed in a limited time as it relates to decisions related to village development that must be taken immediately. The study area was conducted in Riau Province because Riau Province is one of the biggest palm oil producers in Indonesia. The study sites will be divided into two, namely, the land area and the coastal area.

The oil palm industry is a strategic and leading sector of agriculture that is developing in Indonesia. Riau is a province in this country that has quite large natural resources in the plantation with the largest contribution being oil palm. This study aims to determine the form of economic transformation based on superior commodities through the development of a sustainable palm oil industry. The study adopts a mixed-method approach, employing a sequential explanatory model to gather a comprehensive understanding of the oil palm industry in Bengkalis Regency, Indonesia. Quantitative data collection precedes qualitative data analysis, allowing for a deeper exploration of the research topic. The analysis units encompass the oil palm industry, households, and village officials, ensuring a holistic examination of the subject. Data collection involves a range of methods, including surveys, interviews, observations, and focus group discussions, engaging diverse stakeholders such as community members, industry representatives, and government officials. Secondary data from relevant agencies and previous research are also integrated. Ethical considerations are emphasized in data collection and dissemination, ensuring transparency and balance in reporting. Overall, the methodology is well-structured and comprehensive, enabling a thorough examination of the industry's sustainability and development. The research results indicate that the oil palm manufacturing industry is a leading sector and has been categorized as sufficiently sustainable based on different perspectives. Through an optimistic scenario, the government must make efforts and total support to improve the important factors that influence the development of the palm oil processing industry in a sustainable manner, including the community empowerment program, future palm oil prospects, implementation of environmental management.

This research assessed the impact of oil palm plantation development to the acceleration of economic development of community in effort to alleviate poverty in rural areas. The research was conducted through survei with descriptive method. Information obtained through the approach of Rapid Rural Appraisal (RRA). The results obtained by oil palm plantation activities in the rural areas created a figure amounting to 3.03 of multiplier effect, especially in employment and business opportunity. In year 2003, the farmer’s welfare index of rural areas amounting to 1.72. It means the growth of the farmer’s welfare increased by 172 percent. In the period of 2003-2006, farmers' welfare index was 0.18 and the period of 2006- 2009 also experienced positive at 0.12. It means the welfare of farmers during this period increased by 12 percent.