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Sustainable Growth of Indonesia Palm Oil Companies:

Synchronizing Agility, Culture, and Engagement

ICOSMI, 14-16 September 2020


Introduction & Objectives
• Because of its highest productivity and lowest production of cost, it
makes CPO becomes main substitute commodity for soybean,
rapeseed and sunflower oil as the source of vegetable oil [1]
• For the national interest, CPO production reached 37.8 million tonnes
in 2017 and contributed to around 12% of the country’s non oil and
gas exports. In the context of global trade, Indonesia produced 58%
while Malaysia produced 29% in the global market of CPO [2].
Indonesia is a biggest producer of CPO in the world.
• The oil palm plantation companies are facing a various challenges
both in ecological, social and managerial perspective for aiming
sustainable growth. This article is focused on managerial issues,
especially related to talent shortage in managerial resources.
ICOSMI, 14-16 September 2020
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Introduction & Objectives
• Survey Tenaga Kerja Nasional 2018; Indonesian labor force working in the
agriculture, forestry and fisheries sectors experienced a generationally
decline. Previous generations were around 43.57% to only 23.61% in the Gen-
X generation and continues to decline to 16.04% in Millennials generation
• This declining trend leads to the decreasing talent supply for managerial
resources in oil palm plantation companies.
• Relating to this talent shortage, oil palm plantation companies should be able
to effectively answer the two important questions: (1) how to obtain and
retain managerial resources to work over a long period and (2) how to obtain
and retain managerial resource to work in a challenging remote locations
• Therefore this paper is focused on work engagement, business agility,
corporate culture, and its interrelationship.
ICOSMI, 14-16 September 2020
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Methods
• This study is a quantitative reserach by
using online questionnaire for gathering
the data. This study used convenience
and snowballing as sampling methods.
• The seminars were conducted in Jakarta,
Pekanbaru (Sumatera), and Pontianak
(Kalimantan). From the three seminars,
the study got 290 responses from 102
companies.
• From the snowballing approach, this
study got 200 responses from 72 oil palm
companies.
• Total responses were 490 but the
completed and valid were only 477
responses from 132 palm oil companies

ICOSMI, 14-16 September 2020


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Results & Discussion

ICOSMI, 14-16 September 2020


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Results & Discussion

ICOSMI, 14-16 September 2020


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Results & Discussion
• Holistic work engagement is influenced by multi-layer agility significantly.
Multi-layer agility influences 46,6% on holistic work engagement.
• Learning culture impacts on learning agility, leadership agility, and
strategic agility significantly. Learning culture impacts on multi-layer
agility significantly.
• Learning culutre impact holistic work engagement indirectly. By impacts
on multi-layer agility then multi-layer agility impacts holistic work
engagement.
• Strategic agility also does not impact on learning agility directly. Strategic
agility influences leadership agility then leadership agility impacts on
learning agility.

ICOSMI, 14-16 September 2020


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Conclusion
• For sustaining the business growth in changing environment, it need
work engagement of the managerial resource holistically.
• Holistic work engagement can be aimed by developing multi-layer
business agility.
• Developing learning culture is an imperative for sustaining multi-
layer agility.

ICOSMI, 14-16 September 2020


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