Palm oil industry and investment development in Dumai City, Indonesia: A focus on local economy development and sustainability

Abstract

This study focused on the impact of investment in the palm oil industry on promoting socio-economic development in Dumai City, Indonesia. Currently, sustainable investment practices, such as economic growth, environment, and people’s welfare, had not been widely implemented in the industry, and to address this issue, a qualitative methodology was employed with the support of NVivo 12 Plus software. Therefore, this study aimed to determine the impact of palm oil industry investment on sustainable economic development in Dumai. The obtained results showed that investment in the palm oil industry was still fluctuating, and this resulted in an unstable investment climate. The government had taken steps to increase investment in the industry by facilitating licensing and non-licensing services through the Online Single Submission (OSS) and additional fees. It was also found that social conflict arises between the local community and the private sector over land use in areas designated for the palm oil industry, thereby disrupting the urban forest area. Furthermore, this study revealed an important aspect that has been overlooked concerning this industry in the target area. This aspect is concernEd with the benefits of investment in palm oil for the community and the environment in Dumai City (i.e. the social term: Lucky Farmers in the Land of Oil Palm). This study contributed to the efforts of the local government to increase investment in Dumai, with a focus on socio-economic, ecological, and sustainable aspects.

Keywords

• socio-economic
• sustainability
• strategy
• investment
• palm oil