Implementation of Environmental and Licensing Regulations in the Palm Oil Industry: A Case Study of PT Hutan Sawit Lestari, Central Kalimantan

Authors

  • Nur Apriliani Bahri UIN Antasari Banjarmasin
  • Nawal Ainun Najmi UIN Antasari Banjarmasin
  • Muhammad Syamsi Rizki UIN Antasari Banjarmasin
  • Muhammad Qamaruddin UIN Antasari Banjarmasin

DOI:

https://doi.org/10.18592/ajieb.v3i1.18712

Keywords:

Palm Oil Industry, Environmental Regulation, Business Licensing , Sustainability , AMDAL, HCV/HCS, CSR, Central Kalimantan

Abstract

The palm oil industry is one of Indonesia’s most strategic economic sectors, contributing significantly to foreign exchange earnings, employment, and regional development. Despite its importance, the sector continues to face significant environmental and social issues, including deforestation, land-use change, and community conflicts. According to data from the Directorate General of Plantations (2023), Central Kalimantan is the second-largest palm oil–producing province in Indonesia after Riau, contributing 18.19% to national production. This study aims to analyze the implementation of environmental regulations and licensing practices in the palm oil company PT Hutan Sawit Lestari (HSL) and their implications for environmental sustainability and regional employment. Using a qualitative descriptive approach and a case study method, data were collected through the analysis of licensing documents (AMDAL, DELH, Adendum ANDAL, HCV/HCS, and SIA) and in-depth interviews. The results show that environmental regulations play a crucial role in ensuring business practices align with sustainability principles. PT HSL actively updated its environmental documents (DELH 2019, Adendum 2022–2023), implemented eco-friendly initiatives such as methane capture (2×1.2 MW) and palm empty fruit bunch composting to reduce waste and emissions. These efforts demonstrate the company’s compliance with sustainability standards and its operational alignment with industry best practices. The implications extend beyond ecological performance, revealing the company’s broader socioeconomic contributions through PNBP and tax payments of approximately IDR 5–6 billion annually, the creation of more than 1,400 jobs, and the implementation of CSR and SIA programs that support surrounding communitie

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Published

2025-12-20

How to Cite

Bahri, N. A., Nawal Ainun Najmi, Muhammad Syamsi Rizki, & Muhammad Qamaruddin. (2025). Implementation of Environmental and Licensing Regulations in the Palm Oil Industry: A Case Study of PT Hutan Sawit Lestari, Central Kalimantan. Asian Journal of Islamic Economics and Business, 3(1). https://doi.org/10.18592/ajieb.v3i1.18712

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