Digital Entrepreneurial Governance for Cooking Oil Supply Chains and Food Security in Indonesia
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Cooking Oil, Digital Governance, Food Security, Governance, Supply Chain
Abstract
Food security remains a critical challenge in Indonesia despite its position as the world's largest Crude Palm Oil (CPO) producer. Although various policies have been implemented to regulate the cooking oil trade, limited research has examined how governance mechanisms and digital systems can improve supply chain transparency, accountability, and resilience. This study evaluates the governance of Indonesia's cooking oil distribution system and assesses the role of digital governance in strengthening food security. A qualitative approach was employed using purposive sampling of twelve experts representing government institutions, industry associations, practitioners, academics, food task forces, and law enforcement agencies. Data were analyzed using descriptive and thematic techniques. The effectiveness of the proposed digital governance system was assessed across four dimensions: distribution transparency and traceability, monitoring effectiveness, data integration and accessibility, and contribution to supply availability and price stability. The findings reveal persistent governance challenges, including distribution inefficiencies, limited transparency in Domestic Market Obligation (DMO) implementation, weak inter-institutional coordination, and market concentration. Expert assessments highlighted the importance of integrated digital monitoring systems in improving accountability, reducing information asymmetry, and enhancing policy responsiveness. The study proposes a digital governance framework integrating CPO traceability, distribution monitoring, transparent DMO quota management, regulatory reforms, and stronger farmer and cooperative participation. The proposed framework can improve distribution efficiency, support price stability, reduce regional disparities, and strengthen food security. The study demonstrates how digital governance can enhance transparency, resilience, and equitable distribution within Indonesia's strategic food commodity supply chains.
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