Various factors influence palm oil production, including planting material, environment (climate and soil), and cultivation management. The environment occupies a crucial position that can affect crop production potential even with optimal cultivation management. Unfavorable climatic conditions, for instance, drought, can cause water deficit, which has implications for crop productivity. This paper aims to get a comparative study for the effect of water deficit on the inflorescence period, namely the sex determination phase (29 months before harvesting) and floral abortion (10 months before harvesting). The research was carried out on oil palm plantations on peatland in Riau, Indonesia, with the characteristic annual rainfall of 2000 mm/ year. This study employs a simple regression analysis on panel data of five years and two estates for data analysis. The result highlights that the increase of a 100 mm water deficit on oil palm peatland plantation impacts the decrease in productivity by 6% in the sex determination phase. In contrast, in the floral abortion phase, the decline in productivity is more significant, namely 7%. The analysis also indicated that the research deficit had more impact on the bunch number than the bunch weight.
The pressure of the global economic climate that is leading to the concept of sustainability by emphasizing traceability and reducing environmental impact has resulted in the ISPO standard not being fully recognized internationally. This is likely to exclude smallholders from national value chains and from international markets that demand certified commodities. Therefore, this policy brief aims to use ISPO certification to maintain the smallholders’ position in the national value chain. The methods used are spatial analysis, field surveys, and in-depth interviews. The data obtained will then be analyzed with a qualitative approach through Focus Group Discussions (FGD) with experts in various fields to draw conclusions and decisions on policy improvements.
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