PALMOILMAGAZINE, JAKARTA – Despite its status as a high-value crop used for a variety of food and non-food products, including biofuels and aviation fuel, discussions about the sustainability of palm oil continue. These issues relate to deforestation, the impact of climate change, biodiversity loss, and human rights. Whether we realize it or not, all the challenges faced by the palm oil industry rest on the shoulders of plantation and palm oil mill managers. Why? Because they are not only on the front lines, but are also responsible for ensuring the sustainability of their plantations, in terms of production (economic), social and environmental impacts in the areas where they operate.
At the International Conference on Palm Oil and the Environment (ICOPE), jointly organized by Sinarmas Agribusiness and Food, WWF Indonesia, and the French CIRAD Research Institute, in Bali, 12-14 February 2025, there was an interesting presentation from Alain Rival entitled ‘Creating new opportunities for plantation managers’.
Sustainability challenges faced by plantation managers
Traditionally, estate and mill managers were hired to focus on production, with the primary skills required being in agronomy and engineering. However, in the current era of globalization, technological developments and increasing concern from buyers about planetary sustainability, the challenges have evolved. According to Rival, the challenges faced by managers include the ability to anticipate and adapt to climate change, deliver quality products with full traceability, care for communities and civil society, protect biodiversity and promote environmental services. Faced with these complex and multidimensional challenges, Rival proposes that sustainability managers are the new plantation managers.
Through the TALENT programme, there is a proposal to update the content of educational modules for managers. This includes linking training to the international environmental agenda, reviewing plantation models, innovation towards adaptive agroecology, and designing new approaches to commodity trading. Given the increasing social challenges, it is also essential for managers to engage with communities and civil society. As a result, they must develop skills in CSR programming and be prepared to engage in dialogue with NGOs.
A new paradigm of effective plantation leadership
In line with the above, Timothy & Sudardi’s research titled “The Framework of Plantation Leadership: an Insight from Indonesia” (Proceedings International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey, 2022) found that traditional leadership in oil palm plantations is no longer effective and must be revised. They propose a new leadership paradigm that begins with a shift in mindset, followed by improved technical capabilities, and changes in working behavior. To achieve this, leaders must adjust their approach by managing team members on a personal level, paying attention to local culture, wisdom and customs, getting involved in all processes from decision making until the execution, and taking full responsibility for company targets and sustainable strategies.
To ensure productivity, the feudal leadership style and task-oriented approach, inherited from the beginning of the plantation development must be abandoned. Successful managers are those who lead by example, serve as role models, and earn respect rather than rely on the feudal culture with superior-inferior hegemony.
Realizing the implementation of sustainability in oil palm plantations is not easy. In the book by Ari Tjahjanto et al. ‘Sustainability Leadership – The right way to increase employee productivity’ (2025), it is explained that leaders must have a sustainability mindset, integrate sustainability into the business, increase employee awareness and involvement, and adopt an easy-to-implement approach. The results of this study are noteworthy, as the study found that the implementation of sustainability can significantly increase employee productivity. The authors recommend using a framework that combines technology, policies and processes, and people through employee experience to achieve environmental, social, and corporate governance (ESG) goals.
Welcome the contemporary manager
Many people believe that the sustainability of palm oil can be achieved through certifications, such as ISPO, RSPO, or ISCC. While these certifications are important, they do not fully address broader international concerns such as productivity, biodiversity loss, deforestation, and human rights. Certification alone cannot guarantee entry into a market!
A contemporary manager as a frontline leadership can be the answer to ensure sustainability is implemented consistently in every business process in the plantation and mill. This type of manager must possess a sustainability mindset, technological literacy, a balance between task-oriented and people-oriented leadership, and the capacity to engage with communities where the plantation and factory are an integral part of the environmental and social ecosystem. Producing contemporary managers is not easy. It takes time, effort and investment. However, there are not many choices available, not to mention the challenge of the presence of new generation workers with a culture and mindset that is not in touch with the work culture of baby boomers who still dominate the leadership roles in the palm oil industry.
Fortunately, we are not starting from scratch. What was pioneered by the TALENT program can continue to be built upon. Several managers I know already exemplify the qualities of contemporary plantation managers. The company’s HR department with the sustainability, agronomy and engineering teams, and with the support from universities, NGOs and the government, can work together to produce a new generation of plantation and mill managers – a contemporary manager – who will help secure the future of sustainable Indonesian palm oil on the global stage.
By: Haskarlianus Pasang, Co-Chairman ICOPE 2025 and Head of Operations Sustainability, PT SMART Tbk (GAR)
