The achievement of expanding the area and volume of Indonesian palm oil production does not in line with the productivity. The productivity of Indonesian oil palm is inseparable from the age of the plants, most of which have exceeded their productive age. In addition, there are indications that the use of illegitimate seeds is relatively significant, causing yield gaps to potential productivity. Efforts to increase the productivity and sustainability of oil palm plantations have been carried out by forming a particular agency that collects and manages oil palm plantation funds. One of the programs to increase productivity and sustainability is the “Replanting of Smallholder Palm Oil (PSR)” with a grant scheme for participating farmers selected based on specific requirements. The progress of replanting realization is plodding. The target of 180,000 hectares per year cannot be realized. Accelerated breakthroughs without neglecting the primary mission of increasing productivity and sustainability are very urgent. This paper describes the results of a review on the importance of supporting seed institutional innovation for the acceleration of PSR towards increasing productivity and sustainability of Indonesian oil palm plantations.

Purpose: This study assesses postreplanting oil palm farming risks, analyzes seed procurement parameters, investigates seed institutions' performance factors and develops a framework for improved sustainability.Design/methodology/approach: Incorporating data from 219 smallholder farmers in designated replanting areas, our study comprehensively evaluates seed supply performance, examining the roles of stakeholders and identifying potential risks in seed management. We assess these risks using the Risk Priority Number (RPN) methodology and Multidimensional Scaling (MDS) techniques.Findings: The results show that the timing and quantity of oil palm seed supply have a relatively small impact on postreplanting failure risk. To mitigate this risk, focus on monitoring seed purity using high-quality Tenera oil palm-type seeds and early detection technology. Encourage seed-producing cooperatives to become legal seed producers for an inclusive system and consider smallholders' variety preferences.Originality/value: This study’s significance lies in its comprehensive assessment of the risks associated with oil palm replanting on smallholder plantations, detailed analysis of critical parameters in seed procurement, investigation into the performance of palm oil seed institutions across various dimensions and development of a strategic framework to strengthen inclusive seed institutions for sustainable oil palm farming. This strategy holds valuable potential for the development of oil palm in Indonesia, particularly in expediting the smallholders' replanting program.Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2023-0811

The Ultra-Micro (UMi) financing program represents a significant public sector innovation in Indonesia’s approach to poverty alleviation and financial inclusion. Initially conceived as a social assistance initiative, UMi has evolved into a strategic government intervention designed to transform impoverished individuals into entrepreneurs. This shift reflects a policy innovation that redefines the role of the state from passive welfare provider to active enabler of economic participation. Despite ambitious goals, its implementation and impact face scrutiny. This study employed an exploratory qualitative approach through individual interviews with elite participants and debtors of UMi. The data used triangulation from documentation, observation, and in-depth interviews with key informants, selected through purposive sampling. Findings indicate that the program’s implementation—anchored in government regulations and executed through non-bank financial institutions (NBFIs)—demonstrates innovative service delivery. In this study, UMi exemplifies how public sector innovation—through policy reform, institutional collaboration, and community engagement—can drive inclusive economic growth. The study provides valuable insights for policymakers, practitioners, and scholars seeking to advance financial inclusion and sustainable economic development.