Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global South
IntroductionThis study examines how fluctuations in the palm oil industry affect the social and economic vulnerability of urban communities in the Global South, with a particular focus on Dumai City, Indonesia—a palm oil industrial hub striving to achieve sustainable development. Dumai is a major hu...
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Frontiers Media S.A.
2025-07-01
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| Series: | Frontiers in Sustainable Cities |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/frsc.2025.1580197/full |
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| author | Nina Yuslaini Sri Maulidiah Ahmad Harakan |
| author_facet | Nina Yuslaini Sri Maulidiah Ahmad Harakan |
| author_sort | Nina Yuslaini |
| collection | DOAJ |
| description | IntroductionThis study examines how fluctuations in the palm oil industry affect the social and economic vulnerability of urban communities in the Global South, with a particular focus on Dumai City, Indonesia—a palm oil industrial hub striving to achieve sustainable development. Dumai is a major hub for palm oil downstreaming, which produces various commodities such as cosmetics, edible oil, margarine, butter, soap, shampoo, biodiesel, and detergent. As Riau Province ranks first nationally in oil palm plantation area, it serves as a critical region for analyzing these fluctuations and their socio-economic consequences.MethodsThis research employs an exploratory qualitative approach to investigate the impact of investment fluctuations in the palm oil industry. Data analysis is conducted using Nvivo 12 Plus software, enabling systematic categorization and interpretation of qualitative data.ResultsThe findings indicate that fluctuations in investment realization—both Foreign Direct Investment (FDI) and Domestic Investment (DI)—significantly impact economic growth, Gross Regional Domestic Product (GRDP), and employment opportunities in Dumai. The investment climate remains unstable, affecting the city's ability to sustain long-term economic resilience.Discussion and conclusionThe study concludes that industrial investment in Dumai has not yet reached its full potential, leading to persistent economic uncertainty and employment challenges. To ensure socio-economic stability and long-term industrial sustainability, government policies and strategic interventions are essential to enhance investment in the palm oil industry. This study contributes to the Dumai City Government by providing insights into policy development for sustainable industrial growth and economic resilience. It underscores Dumai's role as one of the leading palm oil industrial cities in the Global South, highlighting the need for improved governance to navigate market fluctuations effectively. |
| format | Article |
| id | doaj-art-38965b0b20794ba8aa2fa74bdd3dd3ed |
| institution | Kabale University |
| issn | 2624-9634 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Frontiers Media S.A. |
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| series | Frontiers in Sustainable Cities |
| spelling | doaj-art-38965b0b20794ba8aa2fa74bdd3dd3ed2025-08-20T03:51:44ZengFrontiers Media S.A.Frontiers in Sustainable Cities2624-96342025-07-01710.3389/frsc.2025.15801971580197Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global SouthNina Yuslaini0Sri Maulidiah1Ahmad Harakan2Department of Government Studies, Faculty of Social and Political Sciences, Universitas Islam Riau, Pekanbaru, IndonesiaDepartment of Government Studies, Faculty of Social and Political Sciences, Universitas Islam Riau, Pekanbaru, IndonesiaDoctoral School of International Relations and Political Science, Corvinus University of Budapest, Budapest, HungaryIntroductionThis study examines how fluctuations in the palm oil industry affect the social and economic vulnerability of urban communities in the Global South, with a particular focus on Dumai City, Indonesia—a palm oil industrial hub striving to achieve sustainable development. Dumai is a major hub for palm oil downstreaming, which produces various commodities such as cosmetics, edible oil, margarine, butter, soap, shampoo, biodiesel, and detergent. As Riau Province ranks first nationally in oil palm plantation area, it serves as a critical region for analyzing these fluctuations and their socio-economic consequences.MethodsThis research employs an exploratory qualitative approach to investigate the impact of investment fluctuations in the palm oil industry. Data analysis is conducted using Nvivo 12 Plus software, enabling systematic categorization and interpretation of qualitative data.ResultsThe findings indicate that fluctuations in investment realization—both Foreign Direct Investment (FDI) and Domestic Investment (DI)—significantly impact economic growth, Gross Regional Domestic Product (GRDP), and employment opportunities in Dumai. The investment climate remains unstable, affecting the city's ability to sustain long-term economic resilience.Discussion and conclusionThe study concludes that industrial investment in Dumai has not yet reached its full potential, leading to persistent economic uncertainty and employment challenges. To ensure socio-economic stability and long-term industrial sustainability, government policies and strategic interventions are essential to enhance investment in the palm oil industry. This study contributes to the Dumai City Government by providing insights into policy development for sustainable industrial growth and economic resilience. It underscores Dumai's role as one of the leading palm oil industrial cities in the Global South, highlighting the need for improved governance to navigate market fluctuations effectively.https://www.frontiersin.org/articles/10.3389/frsc.2025.1580197/fullpalm oilfluctuationimpactsocio-economiccommunitysustainable cities |
| spellingShingle | Nina Yuslaini Sri Maulidiah Ahmad Harakan Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global South Frontiers in Sustainable Cities palm oil fluctuation impact socio-economic community sustainable cities |
| title | Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global South |
| title_full | Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global South |
| title_fullStr | Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global South |
| title_full_unstemmed | Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global South |
| title_short | Palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the Global South |
| title_sort | palm oil fluctuations and urban vulnerability in pursuit of sustainable industrial cities of the global south |
| topic | palm oil fluctuation impact socio-economic community sustainable cities |
| url | https://www.frontiersin.org/articles/10.3389/frsc.2025.1580197/full |
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