Acceleration of Smallholder Palm Oil Certification in Riau: Between Rationality and Policy Utopia

The Indonesian Sustainable Palm Oil (ISPO) has been introduced and institutionalized since 2011; however, its adoption among smallholders has remained low. Grounded in rational choice theory (RCT), this study investigates why the ISPO certification policy at the implementation level is ineffective. Using a multiple case study approach, we conducted surveys with 153 respondents, in-depth interviews, and focus group discussions (FGD) in the Pelalawan, Rokan Hulu, and Siak districts of Riau, Indonesia. This study contributes a novel integrated theoretical approach incorporating interaction between macro and microstructures, where instrumental rationality (land legality, cost of certification) interacts with social structure (legal requirements) to influence smallholders’ practices—whether to join or forgo participation in certification—within a dynamic interaction between structure and agency. Findings indicate that meeting prerequisite requirements can be a slow process. In the most extreme case of smallholders in Siak, in a very optimistic scenario, reaching the target will take approximately 95 years without substantial policy reform. We conclude that accelerating certification adoption requires at least three major efforts: bureaucratic reform, mobilization of human and financial resources, and developing incentives before the 2025 target approaches. Without these corrective actions, accelerating certification will only become utopian for farmers.