scholarly journals The Impact of Sustainable Certification on Financial and Market Performance: Evidence from Indonesian Palm Oil Companies

2021 ◽  
Vol 16 (8) ◽  
pp. 1495-1500
Author(s):  
Arif Imam Suroso ◽  
Hansen Tandra ◽  
Indra Wahyudi
Keyword(s):  
Palm Oil ◽  
Social Deprivation ◽  
Social Issues ◽  
Market Performance ◽  
Oil Industry ◽  
Panel Regression ◽  
Oil Companies ◽  
Land Clearing ◽  
Negative Impacts ◽  
The Impact

The palm oil industry is a strategic sector that plays an important role for national economics. Although the palm oil industry's role and contribution are high, land clearing and operation are often associated with environmental and social issues. The sustainable certification was then developed to ensure that palm oil companies can continue to operate without involving environmental and social deprivation. The previous research related to the impact of a sustainable certification found several positive and negative impacts on palm oil companies' performance in general. Therefore, this study aimed to determine the impact of sustainable certification on Indonesia's palm oil companies' financial and market performance. This research focused on 14 palm oil companies in Indonesia that went public with an observation year between 2014 and 2019. Analysis through panel regression found that sustainable certification has no impact on Indonesia's palm oil companies' financial and market performance. The study could be a recommendation and justification for palm oil companies for consider to take a sustainable certification.

scholarly journals The effect of COVID-19 in European union on the performance of Indonesian publicly listed palm oil companies

Accounting ◽  
2021 ◽  
pp. 801-808
Author(s):  
Hansen Tandra ◽  
Arif Imam Suroso ◽  
Mukhamad Najib ◽  
Yusman Syaukat
Keyword(s):  
European Union ◽  
Palm Oil ◽  
Stock Exchange ◽  
Oil Industry ◽  
The European Union ◽  
Oil Companies ◽  
Industry Performance ◽  
Oil Palm Industry ◽  
The Impact

One of the leading industries that affect economic growth in Indonesia is the palm oil industry. The role of this industry depends on the level of exports from European Union countries. Based on the COVID-19 pandemic situation, international trade activities are hampered and could affect industry performance from a stock perspective. Therefore, this study aims to explore the impact of the COVID-19 cases that occurred in the European Union and related macroeconomic variables on the stock performance of the oil palm industry in Indonesia. This research also examines the impact of COVID-19 on certified sustainable companies and companies that are not certified. Panel regression was applied in this study with Eviews 11 Software.This research's observations are 13 palm oil companies in Indonesia which are listed on the Indonesia Stock Exchange (IDX) from March 2, 2020, to August 31, 2020. This study's results reveal that the world CPO prices and market capitalization affect the activities shares of palm oil companies in Indonesia.Meanwhile, from the grouping of certifications within companies, the impact of COVID-19 in the European Union was more substantial on companies that were certified as sustainable. Based on these results, The COVID-19 case in the European Union must be a concern for palm oil companies in Indonesia.

scholarly journals Modeling policy mix to improve the competitiveness of Indonesian palm oil industry

2016 ◽  
Vol 9 (1) ◽  
pp. 231
Author(s):  
Roland Y H Silitonga ◽  
Joko Siswanto ◽  
Tota Simatupang ◽  
Senator Nur Bahagia
Keyword(s):  
Palm Oil ◽  
Value Chain ◽  
Oil Industry ◽  
Added Value ◽  
Government Policies ◽  
Value Chain Analysis ◽  
Policy Mix ◽  
Industry Research ◽  
Chain Analysis ◽  
The Impact

Purpose: The purpose of this research is to develop a model that will explain the impact of government policies to the competitiveness of palm oil industry. The model involves two commodities in this industry, namely crude palm oil (CPO) and refined palm oil (RPO), each has different added value. Design/methodology/approach: The model built will define the behavior of government in controlling palm oil industry, and their interactions with macro-environment, in order to improve the competitiveness of the industry. Therefore the first step was to map the main activities in this industry using value chain analysis. After that a conceptual model was built, where the output of the model is competitiveness of the industry based on market share. The third step was model formulation. The model is then utilized to simulate the policy mix given by government in improving the competitiveness of Palm Oil Industry. Research limitations/implications: The model was developed using only some policies which give direct impact to the competitiveness of the industry. For macro environment input, only price is considered in this model. Practical implications: The model can simulate the output of the industry for various government policies mix given to the industry. Originality/value: This research develops a model that can represent the structure and relationship between industry, government and macro environment, using value chain analysis and hierarchical multilevel system approach.

scholarly journals How Oil Contracts Affect Human Rights

2018 ◽  
Vol 3 (4) ◽  
pp. 30
Author(s):  
Maria João Mimoso ◽  
Clara da Conceição de Sousa Alves ◽  
Diogo Filipe Dias Gonçalves
Keyword(s):  
Human Rights ◽  
Oil And Gas ◽  
Social Issues ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil Companies ◽  
The Social ◽  
Oil Contracts ◽  
The 19Th Century ◽  
The Impact

Since the beginning of the 19th century, we have assisted major proliferation of the oil and gas industry. This phenomenon of exponential growth is due to the fact that oil companies hold the world’s oil monopoly on the extraction, processing and commercialization. Therefore, as being one of the most influential sectors in the world, is crucial to strictly regulate how oil and gas contracts concerns the potential environmental and social impacts arising from the conduct of petroleum operations and how such behavior affects the human rights. As a matter of fact, the social issues field is an emerging area, and despite such importance, oil contracts do not often deal with them in great detail, corresponding to an actual emptiness of the human rights provisions. In terms of responsibly, oil companies, have an inalienable obligation to ensure that their actions do not violate human rights or contribute for their violation. This study aims to trace a detailed analysis of the impact of the oil and gas agreements in human rights. In order to fully comprehend the deep effects of this industry, we will examine, in detail, numerous of published oil and gas agreements, as well as, decode which are the real standards and practices accepted by this industry. We will use a deductive and speculative reasoning. We will try to demonstrate how incipient and short protection is given to human rights and what responsible conducts must urgently be developed.

Sustainability strategy of Indonesian and Malaysian palm oil industry: a qualitative analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ratna Wardhani ◽  
Yan Rahadian
Keyword(s):  
Palm Oil ◽  
Stakeholder Engagement ◽  
Business Models ◽  
Oil Industry ◽  
Social Strategies ◽  
Content Type ◽  
Oil Companies ◽  
Sustainability Strategies ◽  
Sustainability Strategy ◽  
Study Results

Purpose Global palm oil production is growing rapidly, especially in Southeast Asia, with Indonesia and Malaysia as the biggest producers. Despite significant contributions to these countries’ economies, environmental and social aspects continue to be debated within this industry. The sustainability strategy is very important for the palm oil industry. This study aims to explore the sustainability strategy using six elements, namely, stakeholder engagement, governance and leadership, sustainability view and the economic, environmental and social strategies of Indonesian and Malaysian palm oil companies. Design/methodology/approach This study observes 21 Indonesian palm oil companies and 44 Malaysian palm oil companies from 2014 to 2018 with a total observation of 280 firm years. The methodology used in this study is a qualitative content analysis of six themes based on the sustainability strategy elements, which was further developed into 40 indicators. Content analysis is carried out on information published in annual reports and sustainability reports. Findings The study results indicate that stakeholder engagement, governance and leadership and strategic view of the palm oil companies in Indonesia and Malaysia are still likely to be weak. Palm oil companies have not demonstrated their focus on implementing economic, environmental and social strategies. Although the results indicate that there is a greater emphasis on environmental and social strategies than on economic issues, attention to both issues is still very low. Practical implications Palm oil companies need to integrate sustainability strategies in their business models and communicate them well to stakeholders to increase their competitive advantage in the palm oil industry. The government also needs to issue stricter rules and incentives to encourage companies to implement sustainability strategies. Social implications The study results provide implications for the communities around palm oil plantations to provide better social control so that companies can implement sustainability strategies in their business processes. Originality/value This study highlights the importance of sustainability practices integrated into palm oil companies’ business models, which have not been well implemented in the palm oil industry in the world’s largest producing countries.

scholarly journals The Effects of Antimonopoly Policy on Oil Products Markets in Russia

2020 ◽  
Vol 12 (2) ◽  
pp. 40-68
Author(s):  
A. Y. Stavniychuk
Keyword(s):  
Event Study ◽  
Negative Impact ◽  
Indirect Costs ◽  
Market Value ◽  
Oil Industry ◽  
Oil Products ◽  
Oil Companies ◽  
Event Study Method ◽  
Antitrust Laws ◽  
The Impact

The article estimates enforcement activities effects of the Federal Antimonopoly Service in oil products markets. The article analyzes the impact on petrol and diesel fuel markets of two types FAS Russia measures: measures related to the primary detection of antitrust laws violation signs, and measures applied when the violation fact has already been reliably established. The research point is based on the concerns about the negative impact on the companies of posting news of showing interest on the part of antimonopoly authorities with no evidence proving true law violation at the period of publication. To estimate effects on shares prices of large vertically integrated companies in the oil industry we used the event study method. The analysis sample included events that occurred with Russian oil companies from 2013 to 2019. The analysis showed that the effects based on the influence of detection signs of violation and establishing the violation fact of antitrust laws differ both in their intensity and in the direction of influence. It is also proved that the actions of antimonopoly authorities don’t create significant indirect costs of reducing the company's market value.

SCENARIOS FOR THE DEVELOPMENT OF THE RUSSIAN OIL INDUSTRY IN MODERN CONDITIONS

2020 ◽  
Vol 13 (2) ◽  
pp. 139-145
Author(s):  
D.F. Kudriakov ◽  
◽  
T.M. Mazurchuk ◽  
D.R. Grinchenko ◽  
◽  
...  
Keyword(s):  
Oil Industry ◽  
Scientific Work ◽  
Petroleum Products ◽  
Potential Contribution ◽  
Internal Factors ◽  
Oil Companies ◽  
Foreign Countries ◽  
Political Conditions ◽  
The Russian Federation ◽  
The Impact

In the scientific work, a study is carried out of possible scenarios for the development of the Russian oil industry in modern non-stationary economic and political conditions. The hydrocarbon market is undergoing significant changes, largely accompanied by sharp price fluctuations and an excess of supply over demand, so it is important to assess under what conditions the Russian oil industry will be able to maximize its benefits. The aim of the study is to build objective scenarios for the development of the Russian oil industry and its position in the global hydrocarbon market. It also assesses the potential contribution of the Russian Federation to the reduction of oil production in the framework of the renewed OPEC+ transaction involving new oil exporting countries, as well as the combined effect of the agreements affecting oil prices. For making objective forecasts, internal factors are taken into account, among which are: access to hard-to-recover reserves, discovery and development of new deposits, investments in intensification of production, as well as external factors: agreements to reduce production by exporting countries, the impact of the coronavirus pandemic (Covid-19) on the volume of sales of petroleum products, political and other economic conditions that have a direct impact on the global hydrocarbon market. The actual basis of the work is the forecasts of independent experts, analytical agencies, state statistical services, as well as reporting by oil companies in Russia and foreign countries.

scholarly journals The Conundrum of Carbon Trading Projects towards Sustainable Development: A Review from the Palm Oil Industry in Malaysia

Energies ◽  
2019 ◽  
Vol 12 (18) ◽  
pp. 3530
Author(s):  
Hamzah ◽  
Zainuddin ◽  
Yusoff ◽  
Osman ◽  
Abdullah ◽  
...  
Keyword(s):  
Sustainable Development ◽  
Palm Oil ◽  
Positive Impact ◽  
Oil Industry ◽  
Climate Mitigation ◽  
Carbon Trading ◽  
Structured Interviews ◽  
Strategic Direction ◽  
The Government ◽  
The Impact

Palm oil’s utilization as a renewable energy (RE) source has led the government to intervene by introducing emission reduction projects. Carbon trading projects are part of the strategic direction adopted within the climate mitigation plan and sustainability drive in the palm oil industry. The perquisites and opportunities encountered within emissions trading are expected to aid palm oil producers economically, environmentally, and socially. This study addresses and analyses how the carbon trading projects’ targets in Malaysia can be achieved, the problematic, and pressing issues around their implementation and whether these projects are sustainable and create a positive impact. This paper is based on literature reviews and semi-structured interviews with expert palm oil producers in Malaysia. The findings have revealed that carbon trading implementation in Malaysia has delivered new insights towards the international climate policy approach on the feasibility and impact of long-term sustainability goals. However, the impact of the implementation needs support from the government for further development. In conclusion, the major contribution of this study is that the carbon trading implementation in Malaysia complies with the objectives and principles of sustainable development and creates a significant influx in investment for Malaysia’s economic growth.

scholarly journals OIL SECTOR COMPANIES IN THE PERIOD OF THE OIL CRISIS – 2020

2020 ◽  
Vol 4 (34) ◽  
pp. 7-14
Author(s):  
R.R. Akhunov ◽  
◽  
M.Sh. Valiev ◽  
R.I. Nizamutdinov ◽  
◽  
...  
Keyword(s):  
Negative Impact ◽  
Cost Optimization ◽  
Oil Industry ◽  
Energy Sector ◽  
Resource Scarcity ◽  
Transport Sector ◽  
Russian Government ◽  
Oil Companies ◽  
Oil Crisis ◽  
The Impact

In order to prevent the consequences of the pandemic, governments were forced to take radical measures that restrict the mobility of the population, which had a negative impact on the oil market, which is based on the transport sector. The article discusses how such market fluctuations affect the market environment and the behavior of companies. Reductions in revenues and profits caused by falling demand and oil prices, forced companies to resort to cost optimization, including staff cuts and budget cuts in investment programs. The article shows how changes in the behavior of stakeholders represented by the state, investment banks, and civil society affect the activities of oil companies during the pandemic. It describes the impact of short- and medium-term consequences of the pandemic on long-term trends in the energy sector. The Russian Government faces a difficult task of combining two characteristics in the oil industry: an industry that can pull the entire economy out through its growth due to a multiplicative effect in the face of global environmental challenges, and an industry that is the main source of income that determines the country's financial condition. While the renewable energy sector is making a breakthrough in its development, the oil industry is forced to reduce investment in conditions of resource scarcity. If before the crisis, the profitability of the oil business could provide oil companies with investment resources for new projects, the pandemic shock and difficulties in overcoming it forced oil companies to reconsider their investment plans for an indefinite period. Despite the fact that it is not possible to predict the final consequences of the crisis, many industry giants have already announced a revision of their strategies in accordance with the growing trends for greening.

scholarly journals ANALISIS PARTISIPASI MASYARAKAT DALAM MEMINIMALISIR DAMPAK PENGGUNAAN MEDIA SOSIAL PADA ANAK MELALUI OMAH BOCAH DI KOANG KECAMATAN JETIS KABUPATEN BANTUL YOGYAKARTA

2018 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Ade Sofiana ◽  
Sitti Nur Djannah
Keyword(s):  
Social Media ◽  
Social Issues ◽  
Community Empowerment ◽  
Easy Access ◽  
Research Subjects ◽  
Observation Methods ◽  
Negative Impacts ◽  
Use Of Social Media ◽  
The Many ◽  
The Impact

Introduction: Social problems that have occurred have been successfully adopted by the development media that can be used as victims or perpetrators of crime through social media. The many negative impacts of using social media to make children, build the Omah Bocah community in the Koang area of Jetis District, Bantul Regency, Yogyakarta with the aim of minimizing the use of social media. The importance of integrating the community in the context of social issues so that it can be used to analyze the community in minimizing the use of social media use in children through Omah Bocah in Koang, Jetis District, Bantul Regency, Yogyakarta. Method: qualitative research with observational descriptive design. Using interview and observation methods. The research subjects consisted of eleven people consisting of one of the founders of Omah Bocah, two Omah Bocah administrators, three children of Omah Bocah users, two community leaders and three communities. Data collection tools are interview guides, observation guides, handpones and stationery. Results: Omah Bocah is a community that aims to minimize the impact of using social media. The history and strategy of the establishment of Omah Bocah with the role of community participation has included determining strategic locations and easy access. socialization of the delivery of vision and mission. Community empowerment and community self-reliance according to ability. Participation is seen from participation in planning, implementation, monitoring evaluation and utilization has been running well to include all levels of society with their respective roles. Obstacles from the implementation of Omah Bocah in the form of awareness from their children and also the ability to procure materials by the Omah Bocah management.

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