Palm oil commodity in Indonesia is the cash crop for smallholder farmers especially in the dry land area. This smallholder has contributed to produce Crude Palm Oil (CPO) about more than 40 percent in the supply chain. This study is aimed to identify downstream and upstream in the line of CPO palm oil. Secondly, is to know the role of the actors in the CPO supply chain and its traceability. This study employed the traceability method of networking of CPO supply chain in Southeast Sulawesi. Indonesia. Two research sites were conducted as the implementation of survey, observation, interviews and Focus Group Discussion (FGD). The respondents have chosen from the downstream to upstream of the CPO supply chain. Independent farmers, middlemen, delivery order, and Fruit Fresh Bunches (FFB) mills to produce CPO have been interviewed as the key informant of this research. Traceability study shows that the main source of FFB came from the core of PT. Damai Jaya Lestari both in the research site, plasma, and independent farmer. In North Konawe, the downstream line that farmers sell the FFB to the middlemen then they bring to the agency who has the delivery order from the CPO mills. Meanwhile, in Kolaka District, Independent farmers sold the FFB to the agency who has the contract with the PT. Damai Jaya Lestari in Plasma Village, Poliggona Sub District. In terms of the green economy, waste such empty bunches were limited access for farmers who wanted to proceed with the waste for organic fertilizer and feeding cows. The role and the traceability study show that independent farmers have no access to utilize the waste of empty bunches, no protection from the Damai Jaya Lestari as the CPO mills, and have no institutional farmers as the farmers group.

Palm oil commodities have strategic value for the national economy, as they are a source of foreign exchange earnings from CPO and biofuel exports. It is important to highlight that the export value originates from approximately 40 percent of the FFB production at the level of independent palm oil farmers in Indonesia. However, on the other hand, FFB production at the farmer level is still very fluctuating and poses a serious threat to the sustainability of the FFB supply for CPO production. Therefore, this research is very important to conduct with the aim of mapping the roles of various stakeholders directly involved in the supply chain system and conducting a stakeholder engagement analysis. Through this research, it is hoped to provide policy recommendations for strengthening the institutions of independent palm oil farmers so that the supply chain can become a sustainable system. This research has been conducted in East Kalimantan. Primary data collection was carried out using observational methods and surveys with semi-structured interviews and Focus Group Discussions (FGD) with all stakeholders involved in the FFB supply chain system. The stakeholder engagement analysis in this research serves as an analytical tool to assess the roles and characteristics of stakeholders within the supply chain system. The research findings indicate that the existing conditions of the supply chain system, based on the tracing of involved stakeholders, exhibit similarities in the supply chain system, as well as the levels of roles and characteristics of the players within it. This study provides a comprehensive overview as initial data for further analysis to design a risk management model for uncertainty in the sustainability of the supply chain for CPO and biodiesel, which is based on the institutions of independent palm oil farmer groups.