Abstract:
Most of people in Riau province have supposed that oil palm as an excellent
plan, as this kind of plant has given the better result compared with other kinds of
plantation available. Until the year of 2003, the oil palm plantation area has reached
1,312,661 ha with the growth level for one year is 15.39 %. But at farmer level has
occurred the distortion price between self-support farmer and plasma members. It
caused by some factors, namely: 1) the distortion price between self-support farmer
and plasma members; 2) the lack of capability of sel-support farmer in processing
the plantation; 3) sel-support farmer income is influenced siqnificanly by TBS pice
received; and 4) TBS market is inclined monopsonistic.
