POLICY FRAGMENTATION AND ITS IMPACT ON THE SUSTAINABILITY OF THE PALM OIL SUPPLY CHAIN GOVERNANCE

Abstract

The governance of sustainable palm oil supply chains continues to face complex challenges due to fragmented policy frameworks operating across institutional, regulatory, and jurisdictional scales. This fragmentation leads to inconsistent rules, overlapping mandates, and diverging priorities among actors, thereby undermining the effectiveness and fairness of sustainability efforts. This study aims to systematically examine how policy fragmentation influences governance outcomes in palm oil supply chains, focusing on both institutional coherence and equity. A qualitative research design employing the Systematic Literature Review (SLR) method was adopted to synthesize recent scholarly insights. The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol guided the review process. Data were collected from the ScienceDirect database using refined Boolean search strings. After applying inclusion criteria such as publication year (2021–2025), open-access availability, and relevance to the topic, a total of 32 peer-reviewed articles were selected for in-depth analysis. The collected data were analyzed through thematic synthesis to identify recurring patterns, inconsistencies, and knowledge gaps. The findings reveal four dominant themes: institutional misalignment, regulatory overlap, spatial inconsistency in policy enforcement, and power asymmetry across supply chain actors. These issues jointly diminish regulatory effectiveness, marginalize smallholders, and weaken policy legitimacy. In conclusion, addressing policy fragmentation is essential for strengthening sustainability governance in palm oil supply chains. Future research is recommended to explore longitudinal dynamics of policy coherence and the role of digital governance in bridging regulatory gaps.

DOI: https://doi.org/10.56238/edimpacto2025.084-025