• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.539-547
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• 2021

Indonesia is the largest exporter of palm oil in the world. The province of West Sulawesi is the second-largest palm oil producer in Indonesia. This study examines the contributions of oil palm farming to total household income and the factors affecting the household expenditure of oil palm smallholders in West Sulawesi, Indonesia. This study also identifies the problems related to oil palm production in the province. Primary data were collected from 174 oil palm smallholders using a standardized questionnaire in the Lariang sub-district, Pasangkayu, West Sulawesi, Indonesia. Several statistical tools were employed to analyze the data. The study estimated the average household income of the smallholders at IDR 30,417,441 per year, out of which 85,8% comes from oil palm farming, followed by non-oil palm farming (8%) and off farming (6.2%). On the other hand, the average household expenditure was found to be IDR 23,476,069 per year which 66% goes for food consumption and 34% for non-food consumption. The findings revealed that household expenditure of the oil palm smallholders is strongly and positively affected by a number of factors such as household income, education level, family size, earning members in the family, number of children attending school, and amount of credit taken by the household.

• SUVANNABHUMI
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• v.10 no.1
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• pp.117-147
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• 2018

Only a few researchers highlighted the implementation of Indonesian Sustainable Palm Oil (ISPO) certification. These neglected the importance of analyzing the different trajectories of the relations of production in Indonesian palm oil development. As a result, there is a prevailing doubtful attitude on ISPO legitimation. This paper aims to identify how independent smallholder pilot projects give meaning to ISPO legitimation and implementation. It explores production relations in a smallholder community, focusing on land ownership, the formation of a cooperative, and response capability in cases of failure. This paper reveals that the project brought greater understanding to the community with regards to sustainability, as well as strengthened cooperation between the company and the cooperative. This, despite the community's confronting the same problems of land legality as other independent farmers, as the community is located inside the company concession (Hak Guna Usaha, HGU).

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.529-538
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• 2021

This article aims to describe the institutional structuring strategy of independent smallholders in accelerating sustainable economic development, by taking the example of the cow-coconut integration system (SISKA) problem in Sialang Palas Village, Riau. The method used identified stakeholders related to SISKA; the stakeholder's goals and interests, farmers' social and institutional bases, and self-help farmer socio-economic networks. First, identification of various factors through strengths, weaknesses, opportunities, and threats (SWOT) analysis techniques. Second, through the Modern Political Economy analysis technique. Third, imparting knowledge and skills to the farmers and village officials through a collective learning process in utilizing natural resource waste and social resources. The results showed that the farmer management strategy in the reform era started by clustering the interests of farmers. The dynamics of structuring group relations between the chairman and members with farmers outside the group are the basis for strengthening the local ideology of independence in the future. This institutional structuring strategy that focuses on access to farm power in the village decision-making process encourages a more integrated work of farmer organizations. The analysis above shows that the independent smallholder institutional engineering through regulation, organization, and resources are determined by the farmer household economic factors and the application of the value of local wisdom.