The Role of Institutions in the Downstream Agribusiness Palm oil (Elaeis Sp) Subsystem

Abstract

Palm oil is one of the leading commodities of Nunukan Regency. However, problems related to institutions that play a role in the downstream agribusiness subsystem are not running optimally. This is due to limited information, weak coordination between institutions, weak capacity and optimization of farmer institutions. Therefore, this study aims to analyze the institutions that play a role in the downstream agribusiness subsystem. The research was conducted in Nunukan Regency, North Kalimantan Province. Data collection was carried out using a descriptive method through an expert system approach with a survey method. Data analysis with Interpretative Structural Modeling (ISM). The results showed that 11 institutions that have an important role in the Downstream Oil Palm Agribusiness Subsystem in Nunukan Regency are (1). Department of Agriculture and Plantation, (2). Agricultural Extension, (3). Bank Rakyat Indonesia Nunukan Regency, (4).GAPOKTAN/Women’s Farmer’s Group/Farmers’ Group, (5) Middlemen, (6) Cooperative Service, (7).Community Empowerment Agency and Village Government, (8). Cooperative Business Unit, (9). Palm Oil Company, (10). Central Bureau of Statistics (11). Agricultural Quarantine Center. Pemberdayaan Masyarakat dan Pemerintah Desa (BPMD), (8). Unit Usaha Koperasi, (9). Perusahaan Sawit, (10). Badan Pusat Statistik (11). Balai Karantina Pertanian.

Role of the Middleman in Supporting of Oil Palm Smallholders' Community Performance: A Case Study in North Sumatra, Indonesia

“…However, older farmers usually have more management experience. In comparison, younger farmers have less farming experience, so training is needed to broaden and improve their knowledge of proper oil palm cultivation techniques, including using quality seeds (Jafar et al, 2022). 2022), productive-age farmers make bolder decisions when developing their agricultural businesses and have long-term planning compared to old farmers.…”