Oil Palm Smallholders Challenges Towards The Changes In Global Market

Abstract

The expansion of oil palm plantations has been blamed to be the causes of deforestation, biodiversity loss, increased greenhouse gas emission, and land conflicts in Indonesia. The introduction of certification on palm oil products is an effort to meet global demand of edible oils in the away that promote production sustainably and equitably. The goal is to rise oil palm production while reducing negative externalities. Oil palm production can be improved either by intensification and replanting on the current plantations or expansion on degraded land. Smallholder is the most vulnerable actor to be included in the certification scheme because of their weaknesses on accessing to technical assistance, inputs, finance, markets and infrastructure. This article is aimed to analyse barriers faced by oil palm smallholders to improve smallholder yields and to meet the requirements of certification. This study is based on literature reviews, stakeholder interviews and field visit in Riau Province.