The Unequal Contract of Nucleus-Plasma Regarding Palm Oil in Central Sulawesi

Abstract

Contract of nucleus-plasma is an affirmative regulation over any company applied concession for agriculture. Every Palm plantation company that holds concession over 100 hectares is required to apply a nucleus-plasma contract. The problem has arisen since the contract arranged and dominated by the company during the contract period. Research aims are to investigate the contract in an equal position for both parties, to explain legal implications faced by the parties in implementing the contract, and to describe the palm oil agribusiness development prospect through the nucleus-plasma contract. Legal research method and such approaches as statutes, content, and comparative. These would be done by library and field researches. The research location is in Lalundu and Bungku. The research revealed; first, the parties palm farmer (plasma) and Plantation firms (nucleus) are unbalanced positions in the contract which its dominated by the firm in a construct of contract clausal., secondly, by the contract will occur such impact as convert land right (levering), breach of contract., Finally, Palm agribusiness development will support economic development in Central Sulawesi.

Breeding strategy and contract farming model to promote Boer Cross population continuity: A case study at Sadhana Arif Nusa Company Lombok Island West Nusa Tenggara Province, Indonesia)

“…However, in some cases, it can also give the opposite result; namely, non-partner farmers are higher in profit than partner farmers [19]. Moreover, it is necessary to study the benefits of partnering with non-partners to find consistent and conclusive empirical results regarding the effect of contract farming [20]. However, the contract farming model is expected to increase production and profits for both parties.…”