Advertisement

Small-scale Forestry

, Volume 9, Issue 3, pp 379–396 | Cite as

Why do Farmers Prefer Oil Palm? Lessons Learnt from Bungo District, Indonesia

  • Laurène Feintrenie
  • Wan Kian Chong
  • Patrice Levang
Research Paper

Abstract

Indonesia has been the world’s largest producer and exporter of palm oil since 2008. This paper discussed the livelihood impacts of oil palm development in Indonesia, based on lessons learnt from Bungo district, in the province of Jambi. The various community-company partnerships that structure the sector are reviewed and the difficulties raised by the joint ventures schemes are discussed. The merits and drawbacks of oil palm as a smallholder crop are then analysed, based on household socio-economic surveys conducted in 2007–2010. The main causes of conflicts between oil palm companies and communities are unclear land tenure, and a recurrent lack of leadership in smallholders’ cooperatives. Under fair partnerships between smallholders and companies, oil palm could become a smallholder friendly crop. The land-use profitability analysis demonstrates the high returns that can be generated by oil palm independent smallholdings, making it highly competitive with rubber, and much more profitable than rice production.

Keywords

Nucleus Estates and Smallholders scheme Independent smallholders Rubber agroforest Livelihoods impact Sumatra 

Notes

Acknowledgments

This study is part of the project Integrating Livelihoods and Multiple Biodiversity Values in Landscape Mosaics, a joint research project of the Center for International Forestry Research and the World Agroforestry Centre, with support from the Swiss Agency for Development and Cooperation. We would like to warmly thank Stephen Harrison and the anonymous reviewers for their constructive comments; their help was greatly appreciated to improve the paper.

References

  1. Adnan H, Yentirizal N (2007) Blessing or misfortune? Locals, transmigrates and collective action. CIFOR, BogorGoogle Scholar
  2. Barrientos M (2009) Index mundi. http://www.indexmundi.com. Accessed 30 April 2009
  3. Belcher B, Rujehan BM, Imang N, Achdiawan R (2004) Rattan, rubber, or oil palm: cultural and financial considerations for farmers in Kalimantan. Econ Bot 58:S77–S87CrossRefGoogle Scholar
  4. Beukema H, Danielsen F, Vincent G, Hardiwinoto S, Van Andel J (2007) Plant and bird diversity in rubber agroforests in the lowlands of Sumatra, Indonesia. Agrofor Syst 70(3):217–242CrossRefGoogle Scholar
  5. Bonnart X (2008) Agrarian diagnosis in Bungo district, Jambi province, Indonesia. Master of tropical agronomy thesis. IRC-SupAgro, Montpellier, FranceGoogle Scholar
  6. BPS Statistik Kabupaten Bungo (2007) Bungo dalam angka—Bungo in figures—2006. BPS-Statistik Kabupaten Bungo, Muara BungoGoogle Scholar
  7. Casson A (2000) The hesitant boom: Indonesia’s oil palm sub-sector in an era of economic crisis and political change. CIFOR Occasional paper, BogorGoogle Scholar
  8. Chong WK (2008) Oil palm development and land management in Bungo district. Master in agriculture science thesis. IRC-SupAgro, Montpellier, FranceGoogle Scholar
  9. Colchester M, Jiwan N, Andiko MS, Sirait M, Firdaus AY, Surambo A, Pane H (2006) Promised Land. Palm oil and land acquisition in Indonesia: implications for local communities and indigenous peoples. Forest Peoples Programme/Perkumpulan Sawit Watch, JakartaGoogle Scholar
  10. Danielsen F, Beukema H, Burgess ND, Parish F, Brühl CA, Donald PF, Murdiyarso D, Phalan B, Reijnders L, Struebig M, Fitzherbert AB (2009) Biofuel plantations on forested lands: double jeopardy for biodiversity and climate. Cons Biol 2(2):348–358CrossRefGoogle Scholar
  11. De Foresta H (2008) Forêts et foresteries dans les régions tropicales. In: Hallé F, Lieutaghi P (eds) Aux origines des plantes. Fayard, ParisGoogle Scholar
  12. Deheuvels O, Penot E (eds) (2007) Modélisation économique des exploitations agricoles. Modélisation, simulation et aide à la décision avec le logiciel Olympe. L’Harmattan, ParisGoogle Scholar
  13. Dewi S, Ekadinata A (2010) Landscape dynamics over time and space from ecological perspective. ICRAF Southeast Asia working paper (in press)Google Scholar
  14. Ekadinata A, Vincent G (2010) Rubber agroforests in a changing landscape: Analysis of land use/cover trajectories in Bungo district, Indonesia. Forests, trees and live (in press)Google Scholar
  15. FAO (2008) Agriculture statistics. FAO statistics division. http://faostat.fao.org. Accessed 27 November 2008
  16. Feintrenie L, Levang P (2009) Sumatra’s rubber agroforests: advent, rise and fall of a sustainable cropping system. Small Scale For 8(3):323–335CrossRefGoogle Scholar
  17. Gaiser N (2009) Oil palm in Kalimantan: the meaning of oil palm expansion on local farmers’ lives—two case studies of villages in Sanggau district, West Kalimantan. Bachelor of ethnology thesis. Albert-Ludwigs university, Freiburg, GermanyGoogle Scholar
  18. Germer J, Sauerborn J (2008) Estimation of the impact of oil palm plantation establishment on greenhouse gas balance. Env Dev and Sust 10(6):697–716CrossRefGoogle Scholar
  19. Hugo G (2000) The impact of the crisis on internal population movement in Indonesia. Bull Indones Econ Stud 36:115–138CrossRefGoogle Scholar
  20. Joshi L, Wibawa G, Vincent G, Boutin D, Akiefnawati R, Gerhard MG, Van Noordwijk M, Williams S (2002) Jungle rubber: a traditional agroforestry system under pressure. ICRAF. SEA regional office, BogorGoogle Scholar
  21. Lamade E, Bouillet JP (2005) Carbon storage and global change: the role of oil palm. Oléagineux corps gras lipides 12(2):154–160Google Scholar
  22. Lehébel-Péron A, Feintrenie L, Levang P (2010) Rubber agroforests profitability, the importance of secondary products. Forests, trees and live (in press)Google Scholar
  23. Levang P (1997) La terre d’en face. La transmigration en Indonésie. ORSTO, Montpellier, FranceGoogle Scholar
  24. Levang P, Sheil D, Kanninen M (2008) Le palmier à huile, Dr Jekill pour l’énergie, Mr Hyde pour la biodiversité. Liaison énergie-francophonie/UICN, Special Congrès mondial de la nature 2008: 26–31Google Scholar
  25. Marti S (2008) Losing ground—the human rights impacts of oil palm plantation expansion in Indonesia. Friends of the earth, London, UK; life mosaic, Edinburgh. UK; and Sawit Watch, BogorGoogle Scholar
  26. McCarthy J, Cramb RA (2009) Policy narratives, landholder engagement, and oil palm expansion on the Malaysian and Indonesian frontiers. Geogr Journal 175(2):112–123CrossRefGoogle Scholar
  27. McCarthy J, Zen Z (2010) Regulating the oil palm boom: assessing the effectiveness of environmental governance approaches to agro-industrial pollution in Indonesia. Law and policy 3(1):153–179Google Scholar
  28. Nurrochmat DR (2005) The impacts of regional autonomy on political dynamics, socio-economics and forest degradation. Case of Jambi, Indonesia. PhD thesis, Goettingen University, GermanyGoogle Scholar
  29. Rasnovi S, Vincent G, Van Noordwijk M (2006) Forest tree regeneration in rubber agroforests in Jambi. In: Noordwijk MV, O’Connor T (eds) ICRAF working paper. Bogor, IndonesiaGoogle Scholar
  30. Sandker M, Suwarno A, Campbell BM (2007) Will forests remain in the face of oil palm expansion? Simulating change in Malinau, Indonesia. Ecol and soc 12: 37. Available via http://www.ecologyandsociety.org/articles/2292.html
  31. Sargeant HJ (2001) Vegetation fires in Sumatra, Indonesia. Oil palm agriculture in the wetlands of Sumatra: destruction or development? Dinas kehutanan, JakartaGoogle Scholar
  32. Sheil D, Casson A, Meijaard E, Van Noordwjik M, Gaskell J, Sunderland-Groves J, Wertz K, Kanninen M (2009) The impacts and opportunities of oil palm in Southeast Asia. What do we know and what do we need to know? CIFOR, Bogor, IndonesiaGoogle Scholar
  33. Simorangkir D (2007) Fire use: Is it really the cheaper land preparation method for large-scale plantations? Mitigation Adapt Strat Glob Change 12(1):147–164CrossRefGoogle Scholar
  34. Suyanto S (2007) Underlying cause of fire: different form of land tenure conflicts in Sumatra. Mitigation Adapt Strat Glob Change 12(1):67–74CrossRefGoogle Scholar
  35. Suyanto S, Applegate G, Permana RP, Khususiyah N, Kurniawan I (2004) The role of fire in changing land use and livelihoods in Riau-Sumatra. Ecol and Soc 9: 15. Available via http://www.ecologyandsociety.org/articles/632.html
  36. Therville C, Feintrenie L, Levang P (2010) What do farmers think about forest conversion to plantations? Lessons learnt from Bungo district (Jambi, Indonesia). Forests, trees and live (in press)Google Scholar
  37. Wakker E (2000) Funding forest destruction—the involvement of Dutch banks in the financing of oil palm plantations in Indonesia. AID environment, contrast advices, telapaked. Greenpeace Netherlands, AmsterdamGoogle Scholar
  38. WWF (2002) Forest landscape restoration: working examples from five ecoregions. Doveton press, BristolGoogle Scholar

Copyright information

© Steve Harrison, John Herbohn 2010

Authors and Affiliations

  • Laurène Feintrenie
    • 1
    • 2
  • Wan Kian Chong
    • 3
  • Patrice Levang
    • 1
    • 2
  1. 1.IRD, UR 199MontpellierFrance
  2. 2.CIFORBogorIndonesia
  3. 3.IRC-SupagroMontpellierFrance

Personalised recommendations