A Review of Government Interventions Promoting Smallholder Development in Indonesia

DOI

10.2991/ebic-17.2018.2How to use a DOI?

Keywords

Independent smallholders, PIR type schemes, conflict, Government interventions, poverty, plantation laborers

Abstract

Oil palm against a background of widespread poverty in the outer islands, where a large, very poor rural population that was not technically conversant with high input agriculture lived side by side with a prosperous commercial estate plantation sector. While many smallholders in these regions cultivated trees including oil palm as a spread effect from estates, their stands have tended to be low-yielding and land-extensive, providing low returns per unit of area compared to large plantation. Development of smallholders needs to occur alongside large oil palm expansion programs which is driven by large plantation companies. As this review, the productivity of independent smallholders is less than 50% of large plantations. Smallholder yields can be improved via PIR type schemes through a 60:40 scheme (60% for plasma and 40% for the nucleus estate). Though current partnership scheme (20:80) is less effective and difficult to accept, it has created many land disputes. Under 60:40 schemes, estate will accommodate both smallholder expectations for oil palm cultivation as well as estate economies of scale. This will provide companies with a social license to operate and ensure company viability over the longer term. Policies and schemes can help secure the rights, resources and livelihoods of the rural poor.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zahari Zen
AU  - Tapi Rondang Nibulan
PY  - 2018/01
DA  - 2018/01
TI  - A Review of Government Interventions Promoting Smallholder Development in Indonesia
BT  - Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)
PB  - Atlantis Press
SP  - 6
EP  - 15
SN  - 2352-5428
UR  - https://doi.org/10.2991/ebic-17.2018.2
DO  - 10.2991/ebic-17.2018.2
ID  - Zen2018/01
ER  -