Potential Oil Palm Industry Development in Riau

Syahza, Almasdi; Rosnita, Rosnita; Suwondo, Suwondo; Nasrul, Besri

doi:10.21632/irjbs.6.2.133-147

Cited by 8 publications

(8 citation statements)

References 1 publication

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“…The development of plantations, particularly palm oil, proves that public interest in palm oil is very high. The results of a study show that palm oil has given a high-level of prosperity for people in rural areas, who are either directly or indirectly involved in palm oil agribusiness (Syahza, 2013a). Palm oil agribusiness has provided multiplier effects on the rural economy.…”

Section: Resultsmentioning

confidence: 99%

Development of palm oil sector and future challenge in Riau Province, Indonesia

Syahza

Asmit

2019

JSTPM

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Purpose This paper aims to present the development of palm oil sector and future challenge in Riau Province Indonesia, which includes sustainable plantation development. Design/methodology/approach This research was conducted through a survey with developmental research method. The research location is in the Province of Riau, which is the potential development of oil palm plantation. The land areas of Riau are Kampar, Rokan Hulu and Kuantan Singingi, while the coastal areas are Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. The socio-economic and environmental aspects of sustainability level of palm oil plantations were analyzed using a multi-dimensional scaling approach that was modified into a Rap-Insus-Pom. Findings Development of palmoil plantations results in land conversion, posing potential erosio. In anticipating environmental damage, the Government of Indonesia imposes the Indonesian Sustainable Palm Oil (ISPO) policy. The results of ISPO policy show that Indonesian crude palm oil products are environmentally friendly. Originality/value This research is one of few studies that investigate the development of palm oil sector and future challenge in Riau Province, Indonesia. Riau Province still needs 13 units of palm oil mills with capacity of 60 tons per hour. Find strategies to regulate palm oil farming institutions and derivative products to enhance growth and economic development in the region and find production centers and development areas for palm oil local industries in potential regions.

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Section: Resultsmentioning

confidence: 99%

Development of palm oil sector and future challenge in Riau Province, Indonesia

Syahza

Asmit

2019

JSTPM

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“…The success of innovation and adoption of plantation management technology that continues to grow through the changing flow of information technology. Human resources who have adequate knowledge and skills will respond quickly to technological innovations that lead to increased crop productivity and production quality (7). Farmers' access to working capital is guaranteed by formal financial institutions such as state banks or national private banks.…”

Section: Theoretical Framework 21 Local Institutionalmentioning

confidence: 99%

Strengthening Riau Province's Oil Palm Policy Based on Strengthening Local Institutions in Riau Province Bengkalis

Mashur¹,

Meiwanda²,

Tampubolon³

2023

KSS

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Improving sustainable management of oil palm plantations, providing legal certainty, maintaining and protecting environmental sustainability, including reducing greenhouse gas emissions, and increasing the development of oil palm farmers as well as the productivity of oil palm plantations. The policy aspect of considering sustainable development is something that cannot be missed, it must be discussed in an academic text on an oil palm plantation policy. So we need a model that minimizes the complexity and contestation that often appears in the area of oil palm plantation policy. After the research is carried out, it is expected to be able to formulate policies. These findings are useful for the government as part of the implementation of oil palm plantation policies, while still prioritizing the sustainable development aspect. This policy model can later be developed with the birth of strategies and activities that are interconnected in the development of oil palm plantations in Riau Province because it needs support from many stakeholders. So far, the existing policy pattern is top-down, and the dynamics between implementor actors and target groups in the field sometimes differ from the main objectives of the public policies that have been formulated so far. This research will provide new insights into a constructive policy model with a microscope because it is about public and private goods, which provide benefits for the government and welfare for smallholder plantations to oil palm farmers. Keywords: palm oil policy, smallholder plantation, sustainable development

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“…The development of agribusiness-based agriculture in rural areas should be able to reduce inequality between villages and cities. Syahza et al [1] stated that the development of oil palm plantations in the Riau region has a double impact on the regional economy, specifically in creating job opportunities within and in the surrounding community. The bigger the development, the more impact it will have on the plantation sector and its derivatives workforce, as seen from the increase in the income of the farming community, thereby increasing the purchasing power of rural communities for primary and secondary needs [1].…”

Section: Introductionmentioning

confidence: 99%

“…Syahza et al [1] stated that the development of oil palm plantations in the Riau region has a double impact on the regional economy, specifically in creating job opportunities within and in the surrounding community. The bigger the development, the more impact it will have on the plantation sector and its derivatives workforce, as seen from the increase in the income of the farming community, thereby increasing the purchasing power of rural communities for primary and secondary needs [1]. The growth of oil palm plantations has accidentally created an entrepreneurial spirit in rural communities, eventually giving rise to traditional markets and increasing income.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Small-Scale Oil Palm Plantation Development on the Economy Multiplier Effect and Rural Communities Welfare

Syahza¹,

Tampubolon²,

Irianti³

et al. 2023

IJSDP

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This research aims to analyze the multiplier effect of small-scale oil palm plantations and the welfare of the community in rural areas during the first cycle. This developmental research conducted in Indonesia's largest oil plantation area, the Riau Province. Data were collected from farmers using the rapid rural appraisal technique through participatory approach. The data was analyzed to determine the regional economic multiplier number and the social welfare growth index. The results showed the magnitude of the multiplier effect index impacts the welfare index of rural communities. Oil palm farmers in rural areas have a more stable economy, and their consumption style follows the urban communities in creating an attitude of pride. The average family income of small-scale oil palm was more than five times bigger than non-oil palm farmers. In an effort to accelerate the economy in rural areas, especially in oil palm-producing areas in Indonesia, government policies related to pricing at the farm level are urgently needed to have an impact on increasing the income of small-scale farmers in rural areas.

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Potential Oil Palm Industry Development in Riau

Cited by 8 publications

References 1 publication

Development of palm oil sector and future challenge in Riau Province, Indonesia

Development of palm oil sector and future challenge in Riau Province, Indonesia

Strengthening Riau Province's Oil Palm Policy Based on Strengthening Local Institutions in Riau Province Bengkalis

The Impact of Small-Scale Oil Palm Plantation Development on the Economy Multiplier Effect and Rural Communities Welfare

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