Valuation of Total Benefits of Plasma Oil Palm Plantation Land of PT. Karya Makmur Bahagia Based on Triple Bottom Line (TBL) Approach and Analytical Hierarchy Process (AHP)

Abstract

The transformation toward sustainability in Indonesia’s palm oil industry has become an increasingly urgent strategic issue. Despite its significant economic contribution, the sector faces global pressure due to its environmental and social impacts, including deforestation, carbon emissions, and inequality in smallholder welfare. This study aims to provide both theoretical and practical contributions to evaluating the sustainability of oil palm plantations through a comprehensive valuation approach. By integrating the Triple Bottom Line (TBL) framework with the Analytical Hierarchy Process (AHP), this research assesses land value not only from an economic perspective but also from its environmental and social contributions. The study was conducted at PT Karya Makmur Bahagia using a mixed-method sequential exploratory approach, involving 115 plasma farmers for quantitative data and key informants for qualitative insights through interviews, documentation, and field observations. The results show that the economic dimension is categorized as high (0.853), environmental performance is good (0.758), and social impact is positive but not yet optimal (0.743). The integrated AHP analysis yields a total land value index of 0.807, indicating a high level of sustainability. However, sustainability remains imbalanced across dimensions, highlighting the need to strengthen environmental and social aspects to achieve a more optimal TBL balance.