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Does the rise of transnational governance ‘hollow-out’ the state? Discourse analysis of the mandatory Indonesian sustainable palm oil policy

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  • Astari, Annisa Joviani
  • Lovett, Jon C.

Abstract

Rise of transnational business governance has been used to argue that state control has declined, giving rise to the metaphor of a ‘hollowed-out state’. However, an alternative hypothesis is that, instead of a weakening of the state, a transformation occurs. This study uses interviews and discourse analysis to explore the main factors that trigger initiation of a new government policy following extra-territorial transnational negotiations. The Indonesian palm oil sector, specifically publication of the mandatory certification for Indonesian Sustainable Palm Oil (ISPO) policy, is used as a case study. We also explore aspects of the ISPO and oil palm sector that need focusing in order to improve sustainable palm oil sector governance. Q methodology was used to reveal different discourses on the formation and implementation of ISPO policy. We interviewed 36 stakeholders to gather the qualitative data used for the Q concourse; and engaged 27 stakeholders in the Q sorting process. Five distinct discourses were revealed. Two discourses include state sovereignty and the need to strengthen the local sector as triggering factors for ISPO initiation. The other three discourses highlight scepticism about the ISPO, covering financial aspects and conservation value debates; and contain challenges and suggestions for ISPO implementation. The study concludes that, in the Indonesian palm oil sector at least, ‘the hollow-state’ hypothesis is not wholly correct. Instead, the government is undergoing a transformation and is enhancing national institutional capacity through the ISPO. However, there are some major concerns. To better shape the governance of sustainability in this sector the government needs to focus on aspects of policy implementation related to biodiversity conservation values and benefits for the producers when being certified, as well as improving engagement with stakeholders.

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  • Astari, Annisa Joviani & Lovett, Jon C., 2019. "Does the rise of transnational governance ‘hollow-out’ the state? Discourse analysis of the mandatory Indonesian sustainable palm oil policy," World Development, Elsevier, vol. 117(C), pages 1-12.
    • Handle: RePEc:eee:wdevel:v:117:y:2019:i:c:p:1-12
    DOI: 10.1016/j.worlddev.2018.12.012
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    References listed on IDEAS

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    1. Shofwan Al Banna Choiruzzad & Adam Tyson & Helena Varkkey, 2021. "The ambiguities of Indonesian Sustainable Palm Oil certification: internal incoherence, governance rescaling and state transformation," Asia Europe Journal, Springer, vol. 19(2), pages 189-208, June.
    2. Apriani, Ernawati & Kim, Yeon-Su & Fisher, Larry A. & Baral, Himlal, 2020. "Non-state certification of smallholders for sustainable palm oil in Sumatra, Indonesia," Land Use Policy, Elsevier, vol. 99(C).
    3. Eka Intan Kumala Putri & Arya Hadi Dharmawan & Otto Hospes & Bayu Eka Yulian & Rizka Amalia & Dyah Ita Mardiyaningsih & Rilus A. Kinseng & Fredian Tonny & Eusebius Pantja Pramudya & Faris Rahmadian & , 2022. "The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia," Sustainability, MDPI, vol. 14(3), pages 1-20, February.
    4. Eusebius Pantja Pramudya & Lukas Rumboko Wibowo & Fitri Nurfatriani & Iman Kasiman Nawireja & Dewi Ratna Kurniasari & Sakti Hutabarat & Yohanes Berenika Kadarusman & Ananda Oemi Iswardhani & Rukaiyah , 2022. "Incentives for Palm Oil Smallholders in Mandatory Certification in Indonesia," Land, MDPI, vol. 11(4), pages 1-28, April.
    5. Clara Brandi, 2021. "The Interaction of Private and Public Governance: The Case of Sustainability Standards for Palm Oil," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1574-1595, December.
    6. Johnson, Adrienne, 2022. "The Roundtable on Sustainable Palm Oil (RSPO) and transnational hybrid governance in Ecuador’s palm oil industry," World Development, Elsevier, vol. 149(C).
    7. Azhar Maksum & Iskandar Muda & Arifin Lubis & Ibnu Austrindanney Sina Azhar, 2021. "Trading of Indonesian Crude Palm Oil Supply Chain and its Impact on Economic Growth: Implementation of Theory of Comparative Advantage and the Competitive Advantage of Nation," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 296-302.
    8. Handoko Limaho & Sugiarto & Rudy Pramono & Rio Christiawan, 2022. "The Need for Global Green Marketing for the Palm Oil Industry in Indonesia," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    9. Brandão, Frederico & Schoneveld, George & Pacheco, Pablo & Vieira, Ima & Piraux, Marc & Mota, Dalva, 2021. "The challenge of reconciling conservation and development in the tropics: Lessons from Brazil’s oil palm governance model," World Development, Elsevier, vol. 139(C).
    10. Arya Hadi Dharmawan & Dyah Ita Mardiyaningsih & Faris Rahmadian & Bayu Eka Yulian & Heru Komarudin & Pablo Pacheco & Jaboury Ghazoul & Rizka Amalia, 2021. "The Agrarian, Structural and Cultural Constraints of Smallholders’ Readiness for Sustainability Standards Implementation: The Case of Indonesian Sustainable Palm Oil in East Kalimantan," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    11. Nygren, Anja, 2021. "Water and power, water’s power: State-making and socionature shaping volatile rivers and riverine people in Mexico," World Development, Elsevier, vol. 146(C).
    12. Edi Purwanto & Hery Santoso & Idsert Jelsma & Atiek Widayati & Hunggul Y. S. H. Nugroho & Meine van Noordwijk, 2020. "Agroforestry as Policy Option for Forest-Zone Oil Palm Production in Indonesia," Land, MDPI, vol. 9(12), pages 1-34, December.
    13. Cordula Hinkes, 2020. "Adding (bio)fuel to the fire: discourses on palm oil sustainability in the context of European policy development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7661-7682, December.
    14. Hamish van der Ven & David Barmes, 2023. "The uneasy marriage of private standards and public policies for sustainable commodity governance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5161-5173, December.

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