Dynamics of collaborative governance of actors in palm oil fresh fruit bunch price setting

Abstract

The second goal of Sustainable Development (SDGs) is the realization of sustainable agriculture to reducing hunger and achieve food security. One of the indicators of sustainable agriculture is social equality which includes fairness in access to information and market access. However, in practice, in realizing social justice, many smallholders cannot access information and markets, resulting in social inequality. Especially in Riau Province, which is the largest palm oil producer in Indonesia, contradictory conditions exist in the trading system for palm oil fresh fruit bunches (FFB), which still leaves independent farmers with many problems. They do not get prices according to government regulations because they have not entered into a partnership with the Palm Oil Company (POC). To overcome this problem, the Riau Provincial Government formed a partnership palm oil pricing team involving the private sector, community, academics and the press. The aim of this research is to create dynamics of collaborative governance in determining prices for palm oil FFB in Riau Province in order to achieve justice in sustainable agriculture. This research uses a postpositivist approach with descriptive qualitative methods. Using data collection techniques in the form of participant observation and indepth interviews can offer alternative solutions to the problem of inequality in justice for independent farmers. The findings reveal that the dynamics of collaboration between parties, joint motivation to collaborate and equitable pricing, and there is a capacity for joint action in the pricing of oil palm FFB in Riau Province. These three factors have proven effective in providing open access to information and markets for independent partners and nonpartner oil palm smallholders in Riau Province.