Outcomes, impacts, and values of cajuput (Melaleuca cajuputi) oil business model in Perum Perhutani

This title has been presented on Thursday, December 14, 2023 at 13.30-13.40 GMT+7.

Abstract

This title has been presented on Thursday, December 14, 2023 at 13.30-13.40 GMT+7.

The existence of forests is very embedded in human life because it has three functions, namely ecological, social, and economic. One of the companies that has the authority and capacity in Indonesia to regulate the balance of multi-product utilization in forests is Perum Perhutani. Cajuput oil is one of Perum Perhutani's multi-product business. Value, outcomes, and impact are the key concepts in the business model literature. This research aims to evaluate the activity system of the cajuput oil business model at Perum Perhutani. In doing this, we use the activity systems perspective method as a basis for building a framework that combines consideration of interrelated activities with a value-focused view of business models and incorporates perspectives on outcomes and impact. The results of Perum Perhutani's cajuput oil business model activities have positive value for several partners such as forest village communities, farmer cooperatives, cajuput oil factories (packaged products), PT. Palawi (a subsidiary of Perhutani), and consumers. This research shows that Perum Perhutani's cajuput oil business activities provide social, economic, and environmental impacts such as increasing public awareness of the benefits of forests, sustainable land use, and strengthening the mindset that cajuput oil products are socially, economically, and environmentally beneficial.