Abstract:
This research assessed the impact of oil palm plantation development to the acceleration
of economic development of community in effort to alleviate poverty in rural areas.
The research was conducted through survei with descriptive method. Information obtained
through the approach of Rapid Rural Appraisal (RRA). The results obtained by oil palm
plantation activities in the rural areas created a figure amounting to 3.03 of multiplier effect,
especially in employment and business opportunity. In year 2003, the farmer’s welfare index
of rural areas amounting to 1.72. It means the growth of the farmer’s welfare increased by 172
percent. In the period of 2003-2006, farmers' welfare index was 0.18 and the period of 2006-2009 also experienced positive at 0.12. It means the welfare of farmers during this periodincreased by 12 percent.