Barriers model of social sustainability in the supply chain: A case in palm oil industry from emerging economy

Palm oil is a plant-based commodity that is in demand by the world as a substitute for fossil energy. Indonesia is a member of BRICS which is an exporter of crude palm oil (CPO) as biodiesel raw material. As much as 70% of CPO production is exported to 50 countries. CPO production has both negative and positive impacts on social aspects. The social impact of CPO production is rarely discussed in depth. The sustainability approach is used for renewable resources so that it can be an alt ernative to using non-renewable material responses. This research identified the barriers that achieved social sustainability was carried out and searched for the relationship between the barriers using Structural Self Interaction Matrix (SSIM). Then made an Interpretative Structural Model (ISM) in the form of digraphs and grouped into clusters using MICMAC analysis. ISM MICMAC method has never been used to analyze sustainable barriers in the palm oil industry before it. There are 14 obstacles to social sustainability found in this study which is used as the ISM Model with 6 levels divided into 4 clusters. This research was an initial stage for the palm oil industry to eliminate social sustainability barriers in its supply chain. The study provides the found ation for the manager in palm oil industries to understand the influences among the barriers of social sustainability to avoid it during the implementation.