System of a fair profit sharing is necessity and prerequisites for the realization of sustainable palm oil agroindustry in Indonesia

Abstract The main objective of natural resources management (including land ecosystem resources for palm oil agroindustry) is stated in Article 33 of the 1945 Constitution: “The land, water, and the wealth contained therein are controlled by the state and used for the greatest prosperity of the people”. Until now, the management of the palm oil agroindustry in Indonesia is still chaotic, both ecologically, economically, and socially. Various problems arise from the initial licensing process, environmental damage, land conflicts to labor issues and others. It is certain that until now the state has not been fully present in implementing and overseeing Article 33 of the 1945 Constitution, the state should play a role in controlling strong groups of people and at the same time protecting, fostering and defending weak groups of people whose numbers are much greater than the strong groups, in fact it is not uncommon in the real world for the state to protect strong groups. This paper offers a solution concept, focusing on the existing palm oil agroindustry that is running until 2022 covering an area of 15.38 million hectares, namely developing a fair profit-sharing system for all related parties, especially between investors, workers/farmers, and management. The profit-sharing system of Traditional Padang Restaurants can be an inspiration to build a sustainable palm oil agroindustry. This profit-sharing system model has been proven for decades to realize sustainable Padang Restaurants.