Farming Household Readiness for Smallholder Palm Oil Replanting (SPR) Program in Jambi Province, Indonesia: Is there a need for empowerment?”

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VIII, August 2021 | ISSN 2454–6186

Farming Household Readiness for Smallholder Palm Oil Replanting (SPR) Program in Jambi Province, Indonesia: Is there a need for empowerment?”

Ardi Novra¹,², Adrian¹)i and Fatati¹)
¹Center of Excellent Sustainable Integrated Farming System (CoE SIFAS), Jambi University, Jambi, Indonesia.
²Corresponding author

Abstracts: This article describes a new idea of how the level of intervention in household empowerment policies is based on an empirical study of the magnitude of the negative impact of the smallholder palm oil replanting (SPR) program. One of the negative impacts of this program is the temporary loss of income (TLI) for farmer households due to the cessation of production of oil palm fruit bunches. The household survey research was conducted in three village centers for smallholder oil palm plantations in Jambi Province, Indonesia. The research result shows that the average potential TLI in each household if replanting palm oil is carried out is IDR 2,364,644/ month (equivalent to 74.55% of the oil palm household income or 39.78% of the regional economy), Purwodadi Village is the village most vulnerable to regional economic disturbances due to the high potential for TLI, reaching 99.43% of the oil palm household income and 67.06% of the regional economy. The level of TLI is influenced by factors of age and area of old oil palm plants, the proportion of households that will undergo the replanting process, and the level of dependence of regions on oil palm. The high investment in the oil palm replanting process and the fear of losing income are thought to be factors causing households to delay replanting oil palm plantations that have reached unproductive age. Based on the results of the research, it can be concluded that there is still a need for innovation and expansion of empowerment to encourage household readiness in facing the SPR program.

Keywords: empowerment, households, loss income, oil palm, replanting

I. INTRODUCTION

Oil palm is a blessing given by God Almighty with a long journey from Africa to Indonesia until it is finally widespread in Sumatra and Kalimantan. At first, the presence of oil palm plants was only a legacy of the Dutch Colonial Government which slowly became a commercial crop [1}. In the early 1980s, the development of oil palm plants began to propagate until it reached an area of 200,000 ha and up to now the area of oil palm plantations has reached 18.03 million ha. Oil palm plantations have developed in 190 districts as indicated by the oil palm plantation multiplier index which is larger than the sector average [2]. Indonesia has succeeded in becoming the world’s largest producer of palm oil and this commodity has become a mainstay of state revenue from taxes and export revenues. Palm oil products and their derivatives are in the first place for the largest contribution to non-oil and gas exports and have an important impact on the

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