Interventions to Promote Smallholder Oil Palm and Socio-economic Improvement in Indonesia

Zen, Zahari; Barlow, Colin; Gondowarsito, Ria; McCarthy, John F.

doi:10.2307/j.ctv1xz0km.8

Cited by 23 publications

(31 citation statements)

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“…By 2003, the number of livestock in the scheme had doubled. Meanwhile, the area of harvest per worker had increased from 10 to 15 ha, and their associated income had increased [22]. Thus, the implementation of social interventions can increase economic potential.…”

Section: Resultsmentioning

confidence: 99%

Social intervention in improving smallholders welfare in realizing eco-friendly palm oil plantations

2020

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The Indonesian government continues to strive to increase the production, productivity, and quality of oil palm. Several studies on the welfare impact have shown that some smallholders benefit greatly in terms of income. Meanwhile, there are challenges to improve the welfare of smallholders, such as financial and knowledge barriers. Therefore, this article aims to identify social interventions’ contribution to improving farmer welfare and realizing environmentally friendly oil palm plantations. Social intervention can be interpreted as an effort to help in the form of planned changes to individuals, groups, and communities, which can come from government, corporate, third parties, communities, and individuals. This article contributes to define and gather social intervention perspective in improving smallholder welfare. The study employs a method approach combining literature review and descriptive analysis. These social intervention approaches, ideally embedded in a community strategy developed by the stakeholders in palm oil practice, have the potential to improving smallholder’s welfare in realizing eco-friendly palm oil plantations. To complement previous researches, this research is important because it is specific to enhance smallholder welfare through social intervention approach. Social intervention can be a form of law intervention, financial scheme and support, community programs, and corporate social responsibility (CSR) programs. Through that can help palm oil farmers, especially smallholders, to increase productivity while paying attention to environmental sustainability.

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Section: Resultsmentioning

confidence: 99%

Social intervention in improving smallholders welfare in realizing eco-friendly palm oil plantations

2020

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“…Moreover, according to Zen et al, (2016), the Government of Indonesia has only been doing (Zen, et al, 2016). In comparison, Zen, et al (2016) Although, the implication so far is limited to be assessed in case by case basis. This is due to numerous business model and governance in palm oil sector.…”

Section: Sectoral Upgrading: the Role Of Technologymentioning

confidence: 99%

“…In general, permanent workers obtain better income than casual workers who paid daily(Pacheco et al, 2017). Plasma farmers also receive regular monthly compared to independent farmers due to low yields(Zen, Barlow, Gondowarsito & McCarthy, 2016). Indonesian government claims that 16.2 million people make a living from palm oil plantation with 4.2 million direct labours and the rest 12 million considered as indirect workers.…”

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confidence: 99%

Upgrading and Global Value Chain 4.0: The Case of Palm Oil Sector in Indonesia

Perdana

2020

GSR

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The Industrial Revolution 4.0 promotes digitalization and innovation across many sectors of industries allowing them to thrive by increasing productivity, profitability, product quality and performance. However, the utilization of digital technology especially in agricultural sector, requires effective governance in which must adhere to sustainability practices for upgrading strategies. As one of the main export commodities in Indonesia, the palm oil industry is in alert to face challenges brought by the Industrial Revolution 4.0. This research draws from the latest work of Gerrefi and Lee on Global Value Chain. In the framework of horizontal industrial cluster and vertical global value chain governance, the theory examines how governance and upgrading trajectories produces economic upgrading which correlates to social and environmental upgrading. This research, then scrutinizes the question posed by the role of technology which supports as well as accelerates the upgrading strategies. The GVC analysis of Indonesian palm oil industry will be used as a case study to understand the complexity of how actors operate in every cluster of governance. Economic upgrading is not always associated with social and environmental upgrading. Therefore, a strong linkage between actors suggests that the Industrial Revolution 4.0 is relevant and essential to enhance synergy to cater for economic, social and environmental dimensions in order to harness the potential of sustainable development.

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“…Oil palm (Elaeis guineensis) is native to tropical Africa, but is grown across the tropics, primarily in Southeast Asia, notably Malaysia, Indonesia, Thailand, and Papua New Guinea (Koh et al, 2011;Wicke et al, 2011;Nelson et al, 2014). More recently, oil palm cultivation has expanded across West and Central Africa (Ordway et al, 2017) and parts of Central and South America (Pacheco, 2012), driven to a large extent by the higher rates of return on investment as compared with other land uses (Zen et al, 2016). As a consequence, the crop has come to be seen as an important mechanism for enhancing the income of rural communities, tackling poverty, and supporting the socio-economic development of what are often marginal rural areas on the forest frontier (Zen et al, 2016).…”

Section: Introductionmentioning

confidence: 99%