CHALLENGES OF SUSTAINABILITY ACCOUNTING: A CASE STUDY OF SUSTAINABLE PALM OIL IN NUNUKAN, INDONESIA
Puspita Hardianti Anwar, La Ode Sabaruddin

Department of Accounting, Faculty of Economic and Business, Airlangga University, Surabaya, Indonesia

Abstract

This research aims to explore the challenges faced in implementing sustainable palm oil programmes based on the interpretation of the human capability concept. This research uses a descriptive qualitative method, with an exploirative case study approach based on the interpretation of the concept of human capability. The data collection technique used indeepth interview and Focus Group Discussion (FGD). The data used are primary data and secondary data, related to sustainable palm oil in Nunukan, as one of the largest palm oil production centres in Indonesia.

Sustainability accounting faces significant challenges due to administrative-focused practices, outdated paradigms, and insufficient financial and non-financial data quality. Additionally, weak capability building, lack of stakeholder collaboration, symbolic actions, poor transparency in environmental disclosures, and inadequate moral accountability hinder meaningful progress in sustainable palm oil practices. To be an information material for stakeholders, for serious institutional improvement by paying attention to social aspects and responsibility, to pursue sustainability accounting in the future. Identify barriers and challenges to sustainability accounting in the oil palm plantation sector, in order to drive the SDGs agenda in Indonesia.

Keywords: Human Capability, Accounting, Palm Oil Sustainability

Topic: Sustainability accounting