Triple Bottom Line in Indonesia Commercial Palm Oil Mill Business: Analytical Network Process Approach Arif Imam Suroso 1* , Iyung Pahan 2 , Hansen Tandra 3 1 School of Business, IPB University, Bogor 16151, Indonesia 2 DMI Consulting Firm, Jakarta 12930, Indonesia 3 Department of Environmental and Resources Economics, IPB University, Bogor 16680, Indonesia Corresponding Author Email: arifimamsuroso@apps.ipb.ac.id https://doi.org/10.18280/ijsdp.160517 ABSTRACT Received: 4 June 2021 Accepted: 30 July 2021 The latest trend in palm oil business is the emergence of independent commercial crude palm oil (CPO) mills, which emphasize processing FFB from smallholder plantations. The involvement of smallholders without mill in CPO operations shows that there is potential from the business for sustainable development. The purpose of this study to investigate the Indonesian commercial CPO mill business with a triple bottom line perspective. Moreover, this is to gain how much benefit the Commercial CPO mill business is in terms of profit, people and planet. This study applied the Analytic Network Process (ANP) with the criteria of profitability, social justice and environmental quality. This analytical technique uses a number of experts related to the palm oil business and sustainable development. The results of this study reveal that the critical success factors of priority Indonesian commercial CPO mills are the source of raw materials from small farmers (71.90%) and operational considerations of CPO mills (28.10%). While the benefits of this business can create shared value through quadruple helix analysis of academics, entrepreneurs, communities, and government which ranks profit (53.05%), people (23.75%) and planet (23.19%). The significant results of this study revealed that the Indonesia Commercial CPO mill is sustainable from triple bottom line point of view. Keywords: analytic network process, triple bottom line, palm oil, business, sustainable development 1. INTRODUCTION Indonesia palm oil business has grown rapidly and took over the first ranked as the biggest global producer since 2004 [1, 2], and has been reported very competitive both in firm level and also on a country level [3, 4]. The development of palm oil business can be used as an effort by governments to generate foreign exchange, enlarge job creation, and improve farmers welfare [5, 6]. Indonesia oil palm plantation in 2018 has achieved approximately more than 12 million hectares planted area as shown in Figure 1 [7]. The most significant upward trend was big private companies and smallholders, while smallholders will take over the majority portion in a couple years. Based on this condition, the role of Indonesia palm oil stakeholders in the near future will change fundamentally, with respect to public empowerment and environmental aspect [8]. The oil palm economy can be used as a vehicle to contribute positively for rural poverty eradication and economic development [9]. It is also can be used as a model for other countries with similar soils, climate, labor availability, and also a showcase for environmental improvement [10]. The oil palm-based industry has contributed to Indonesia economic growth, poverty alleviation, and income equity improvement [11, 12]. The economic, social and environmental approach, formulated by Elkington [13] as triple bottom line concept, is commonly referred as triple bottom line (profit, people, and planet) which became mainstream for business sustainability as effort to integrate economic, environmental and social considerations into a company’s appraisal and decision-making actions [14]. Furthermore, triple bottom line can improve well-being and quality of life through the creation of jobs and wealth including creation, extension, retention, and employment, of jobs and businesses [15]. It will reach to the overall goal of sustainable development which is a long-term stability of economic and environment. Commonly, the basic concept of sustainable development based on United Nations Assembly [16] is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” [17]. Specifically, the sustainable development can be defined as a reconciliation of the economy and the environment to being a new path for long-term development in future [18, 19]. The palm oil industry is exposed to global vegetable oil trade competition and facing a lot of international pressure through negative publication and intense mediatization. Media attacks palm oil industry through conventional media and non- government organization [20], and social media publics [21]. Specifically, these issues about palm oil controversies concern to impact of palm oil production on tropical peatland and their relation in global palm oil consumption [22]. However, palm oil is the most traded vegetable oil in the world, exceeding other vegetable oils and transformed Indonesia became the global main producer. This study is aimed to identify how the triple bottom line concept influences the Indonesia commercial palm oil business and its implications on creating International Journal of Sustainable Development and Planning Vol. 16, No. 5, September, 2021, pp. 965-972 Journal homepage: http://iieta.org/journals/ijsdp 965