Authors:
Inez Cara Alexander Phoek, Hendrik Susanto, Maria Maghdalena Diana Widiastuti, Diana Sri Susanti, Ruloff Fabian Yohanis Waas

Addresses:
Department of Management Study Program, STIE Saint Theresa, Merauke, South Papua, Indonesia. Department of Agriculture, Universitas Musamus, Merauke, South Papua, Indonesia. Department of Law, Universitas Musamus, Merauke, South Papua, Indonesia. 

Abstract:

Rapid palm oil plantation expansion in frontier locations like Merauke, South Papua, has raised socio-environmental problems, particularly for indigenous communities whose livelihoods and traditional land rights are threatened. Comparing corporate willingness to pay (WTP) for externalities with community willingness to accept (WTA) compensation, this study examines the social and environmental consequences of palm oil development. Three plantation businesses and six indigenous villages provided data through contingent value surveys, key informant interviews, and institutional mapping. Due to local concerns about environmental degradation and socio-cultural displacement, the WTP-WTA gaps are considerable. Regression research indicates that environmental quality and social well-being significantly influence WTA, whereas demographic characteristics do not. Institutional trust and governance systems mediate community expectations and corporate involvement initiatives. This study proposes a context-sensitive valuation system that incorporates economic assessment, socio-cultural legitimacy, and participatory governance to advance sustainability. Policy innovation is needed to develop localized CSR indicators, formal community engagement mechanisms, and regulatory frameworks that internalize WTP–WTA dynamics into sustainable land-use governance. To promote socially equitable and environmentally sustainable palm oil production in Papua, corporate strategies must align with indigenous knowledge systems and community-driven development goals.

Keywords: Contingent Valuation Method; Customary Land Rights; Corporate Social Responsibility; Socio-Environmental Cost; Institutional Mediation; Willingness to Accept (WTA); Willingness to Pay (WTP).

Received on: 13/06/2024, Revised on: 27/07/2024, Accepted on: 01/09/2024, Published on: 05/03/2025

DOI: 10.69888/FTSHS.2025.000391

FMDB Transactions on Sustainable Humanities and Society, 2025 Vol. 2 No. 1, Pages: 19-27

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