Institutional Role Model of Independent Oil Palm Farmers in Implementing Sustainable Oil Palm Plantations

ABSTRACT Oil palm ( Elaeis guineensis and Elaeis oleifera ) is a globally significant renewable commodity, producing crude palm oil (CPO) and palm kernel oil (PKO) for use in food products, oleochemicals, biopolymers and biofuels. With an average market price of USD 826/ton, approximately 20% lower than other vegetable oils, palm oil remains a cost‐effective resource. This study aims to develop a sustainable institutional model for independent smallholder farmers, guided by the Sustainable Development Goals (SDGs), and focused on the ecological, economic and social pillars of sustainability. The study was conducted from January to December 2025 across five Indonesian Sustainable Palm Oil (ISPO)‐certified smallholder institutions in Siak Regency, Riau Province, Indonesia. Using purposive sampling and the analytic hierarchy process (AHP), the study assessed strategic institutional components. Results show that inter‐organisational task roles (AHP weight: 0.40537) are the most critical factor, followed by service tasks, resource utilisation and extra‐organisational roles. The proposed sustainability index incorporates multiple dimensions (economic, social, environmental and collaboration). Strengthening partnerships among farmer groups, cooperatives and support institutions is essential for institutional resilience and long‐term sustainability. The model provides a strategic framework to support the advancement of sustainable oil palm plantations among independent smallholders.