The oil palm independent smallholder (farmer) is one of the important actors in maintaining the continuity of the production cycle in the oil palm agro-industry supply chain in Indonesia. Various fundamental problems faced by the independent smallholder are related to land legality as well as their limited ability to manage good agricultural practices, access funds and information on current prices, and use of quality and agricultural production facilities. The institutional strengthening of the independent smallholder requires attention and support from government and other business actors in the supply chain of the oil palm agro-industry. This study aims to obtain a model of institutional strengthening through the application of the enrich seven steps of soft system methodology. The assumptions that must be fulfilled in strengthening this institution were described. The institutional strengthening model was developed in three stages, i.e., the establishment of smallholder corporations, the establishment of independent cooperatives, and the revitalization of the Indonesian oil palm independent smallholder association. Various individual strengthening actors were investigated and then integrated. The suggested institutional strengthening model involved cooperatives, smallholder farmers groups, and the oil palm mill, supported by regulatory, financial, and input provider agencies with a mutual partnership program.

Supply chain sustainability assessment is key to maintaining and improving the performance of agroindustry supply chains, particularly in sustainable agroindustry development. The assessment of agro-industrial supply chain performance is a complex and dynamic process. Hence, there is a need for an adaptive fuzzy multi-criteria sustainability assessment model as an alternative method of analysis and improvement. This study aimed to design an adaptive fuzzy multi-criteria sustainability assessment and improvement model for the sugarcane agroindustry supply chain. In this study: (1) a fuzzy inference system (FIS) was developed to assess the performance of the sustainability dimensions. This study proposed 24 indicators for four dimensions: economic, social, environmental, and resource. (2) An adaptive neuro-fuzzy inference system (ANFIS) is designed to aggregate the overall supply chain sustainability performance. (3) The proposed fuzzy multi-criteria assessment model was compared with the common multidimensional scaling (MDS) and linear models. This study proved that the proposed synthesis of the FIS and ANFIS models is powerful and adaptive for evaluating supply chain sustainability and providing accurate results. (4) The strategies to improve sustainability performance were developed using the cosine amplitude method (CAM). The proposed model determined that the overall supply chain sustainability value was 68.58%, which was almost sustainable. Several strategies have been suggested to improve sustainability performance, including maintaining the sugarcane supply by strengthening the partnership program and improving the mill’s overall recovery, followed by factory revitalization or new factory investment.

The sustainability of the sugarcane agro-industry supply chain plays a crucial role in providing economic benefits, minimizing social and environmental impacts, and optimizing resource utilization. This research aims to analyze the sustainability performance of the sugarcane agro-industry supply chain using multi-criteria assessment and formulate strategies for sustainability improvement. The study proposes a multi-criteria assessment model with twenty-eight indicators and four dimensions of sustainability: economic, social, environmental, and resources, which were developed based on previous research. The fuzzy inference system (FIS) and multi-dimensional scaling (MDS) methods were utilized to analyze the multi-criteria indicators of sustainability performance in each dimension and overall supply chain. The Adaptive Neuro Fuzzy Inference System (ANFIS) model was used to aggregate multi-dimension sustainability to achieve overall sustainability performance. A fuzzy cognitive map (FCM) framework was developed to formulate strategies for improving the sustainability performance of the supply chain. The research was verified at two sugar mill locations in Java Island, Indonesia. The FIS and MDS models successfully analyzed the sustainability performance of the two sugar agro-industries, showing an average value of “quite sustainable”. The overall sustainability performance using the ANFIS model for mill A and B were 57.2 and 61.9, respectively. Series of FGDs combined with the FCM model successfully formulated five clusters of strategies as initiatives in improving the sustainability performance, namely raw material provision, harvesting and post-harvest activities, production process optimization, IT-based technology implementation, and institutional aspects. This present work seeks to contributes to the development of multi-criteria of sustainability performance for the food industry's supply chain. It also proposes a comprehensive framework for analyzing and improving sustainable supply chain performance under uncertainty using a combination of conventional and fuzzy assessment modeling approach. A practical initiative strategy in sustainability improvement is revealed for the sugarcane agroindustry's supply chain.

Depleting stockpile of fossil fuels and rising global temperature due to the greenhouse effect are probably the two most threatening factors to civilization sustainability. Converting biomass into a readily available energy source will help reduce dependency on fossil fuels, whilst at the same time moderating greenhouse gas emmissions due to its carbon neutrality. Palm oil industry is the largest source of biomass in Indonesia and the available quantity to be utilized is growing inline with the steady growth of the generating industry. Among various wastes from palm oil processing, palm kernel shell is an oil palm biomass with high potential to be applied as a source of energy, given its high caloric value and distinctive physical properties. This source of renewable energy can be utilized by industries with thermal conversion processes. As a prerequisite, a feasibility study on technical, environmental, and economic aspects needs to be carried out. From long term perspective, supply, demand, and regulatory situational analysis will also be required. Lastly, a review on the existing palm kernel shell supply chain will help to understand its current situation. Based on literature studies and field observations, we have identified supply and demand characteristics that will be valuable in constructing an effective, efficient, and sustainable supply chain model of palm kernel shell. Understanding these characteristics is a precursor in realizing this massive potential of renewable energy source in the industrial context.

The palm oil industry is a promising biomass source, as the production generates wastes more than four times that of the main product. In 2020, for 45 MT of crude palm oil production in Indonesia, it was estimated that around 12 MT of palm kernel shell were generated or equivalent to 5.4 MTOE in net calorific value. This high calorific value of solid waste can be used by industries as a source of renewable energy, once it is proven to be technically, environmentally and economically feasible. In this comparative study, the life cycle assessment method was deployed to determine the environmental feasibility of palm kernel shell usage as an alternative renewable energy source to coal and natural gas in ceramic tile production through the application of combustion technology. The novelty of this study lies in a cradle-to-gate approach by comparing the carbon footprint of biomass from agriculture industrial waste with common fossil fuels as sources of energy for a highly energy-intensive industry. This research demonstrates that by evaluating the total life cycle of a fuel, the perspective on environmental impacts can be quite different when compared to looking solely at the end-use process. This study shows how the deployment of life cycle assessment would create managerial implications toward the decision making of fuel selection with carbon footprint considerations.

The environmental, social, and governance (ESG) framework is critical for promoting sustainability in industries with substantial environmental impacts, such as the paint industry. Despite its significant contribution to Indonesia’s gross domestic product (GDP), the paint industry faces challenges in adopting ESG principles, including dependency on hazardous materials, reliance on imported raw materials, and limited participation in sustainability initiatives. This study develops an ESG-oriented business model by examining the influence of governance, environmental, and social dimensions on economic performance within Indonesia’s paint industry supply chain. Using structural equation modeling—partial least squares (SEM-PLS) and data from 170 stakeholders, the findings confirm that all three ESG dimensions positively and significantly impact economic outcomes. This model underscores the necessity of integrating ESG principles to enhance resilience, adaptability, and social responsibility while mitigating environmental risks. The study provides actionable insights for policymakers and industry stakeholders to implement ESG-driven strategies that align sustainability goals with economic growth. However, limitations such as geographical scope, short-term analysis, and broad coverage of supply chain activities highlight the need for further research to ensure generalizability and long-term applicability.