Seminar 13 Mar 2013 - Session 4 - Smallholders oil palm production in Indonesia_ by SBudidarsono
27
One Day Seminar “Tree cover transitions and investment in multicolored economy : hypotheses grounded in data” Bogor, March 13, 2013 Suseno Budidarsono
-
Upload
forest-trees-and-agroforestry-component-3-landscape-management -
Category
Documents
-
view
578 -
download
2
description
Smallholders represent a significant portion (38%) of oil palm cultivation in Indonesia, and represent a critical component of the palm oil industry, as well as constitute a significant opportunity to improve livelihoods in resource-poor settings. Smallholders’ engagement in oil palm cultivation began as part of Indonesian government to promote tree plantation crops in the late 1970s. The initial programme consisted basically of direct state investments through state-owned companies (PTPN) and was integrated with government-sponsored transmigration programmes to provide a labor force for the new plantations. This integration was embryonic for smallholder engagement in state-led agribusiness. The emergence of smallholder oil palm planters constituted a spread effect of plantation development led by the government. The state agribusiness-driven policy has transformed rural areas and settlement development was started in the surrounding of large-scale oil palm plantation.
Transcript of Seminar 13 Mar 2013 - Session 4 - Smallholders oil palm production in Indonesia_ by SBudidarsono
One Day Seminar “Tree cover transitions and investment in multicolored economy :
hypotheses grounded in data” Bogor, March 13, 2013
Suseno Budidarsono
Oil palm plantation distribution in Indonesia, by province
BPS (2012), Indonesian Oil Palm Statistics 2011. Jakarta
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
Pla
nte
d a
rea
(10
00
ha)
Smallholders State-owned plantation Large scale private plantation
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
Smallholders State-owned plantation Large scale private plantation
2010 Smallholders : 39.6%, State-owned plantation : 7.7%, Large scale-private plantation : 52.8%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
CP
O p
rod
uct
ion
(1
00
0 t
on
)
Smallholders State-owned plantation Large scale private plantation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
Smallholders State-owned plantation Large scale private plantation
2010 Smallholders : 37.6%, State-owned plantation : 8.5%, Large scale-private plantation : 53.9%
Direct and indirect impact of oil palm plantation on socio-economic of local people
at the village level : infrastructure development, employment generation, income opportunities, land pressure and migration (PODES)
at the household level : welfare and livelihood, such as education, family income, employment, capital accumulation (household survey)
Parameters Variables
Settlement development Settlements patterns (in the surrounding area of the plantations)
Physical characteristics and its natural resource endowment
Accessibility
Public utility and infrastructure
Demographical development Population growth
Migration
Employment
Education
Health
Rural Economy development Economic activities
Parameters, variables and data to be observed in the socio-economic impact assessment of palm oil industry at village level.
Main findings on comparison between villages with oil palm as main commodity (OPC) and villages with other main commodities (NOPC) in the surrounding area of the 23 plantation samples
1. Adoption rate :
• 11.4% within 10-km surrounding areas (11.4% of the villages have oil palm as the main commodity) and ranges from 3-45% across the 23 samples
• 7.9% within 20-km surrounding areas with a range from 0-35% adoption rate across samples
2. Villages of OPC tend to be more highly populated and the percentage of men in the population is significantly higher than that in NOPC.
3. The percentage of households that makes use of governmentally owned Electricity Company is not significantly different between OPC and NOPC
4. Percentages of households served by non-government electrical company are much higher in OPC than NOPC, perhaps with the facilitation or helps from the oil palm companies or the higher income generation that allow people to access other facilities.
5. Accesses to elementary schools are similar between OPC and NOPC. Distances to secondary schools, hospitals and other medical services are significantly higher in OPC than NOPC. This means that perhaps OPC are more remote and that public/government facility developments perhaps are not prioritized in OPC.
6. With regards to health indicators, OPC show significantly lower prevalence of malnutrition, per capita health insurance for poor family and also per capita service for poor people than those in NOPC.
7. From industry-sides and economic opportunities, only wood industry, number of shops, and number of minimarkets and number of hotels are significantly higher in OPC and NOPC.
8. The number of cooperatives (koperasi) and village unit cooperatives (KUD) are significantly higher in OPC than in NOPC villages
7. From industry-sides and economic opportunities, only wood industry, number of shops, and number of minimarkets and number of hotels are significantly higher in OPC and NOPC.
8. The number of cooperatives (koperasi) and village unit cooperatives (KUD) are significantly higher in OPC than in NOPC villages
Household level survey : sample distribution
209 204
43
137
222
97
225 231
91 88
30 47 72
50 35 43
456
Sum
ater
a
Kal
iman
tan
Sula
wes
i
Part
ner
ship
Ind
epen
den
t
Mix
ed
Ind
igen
ou
s
Mig
ran
t
No
rth
Su
mat
ra
Ria
u
Sou
th S
um
atra
Wes
t K
alim
anta
n
Cen
tral
Kal
iman
tan
East
Kal
iman
tan
Sou
th K
alim
anta
n
Wes
t Su
law
esi
Island Plot Management Farmer status
Province Total
Variable %
Household sample (n) 456
Family members 2007
Nuclear 1807 97.5
Extended 200 2.5
Sex Ratio 1 : 1.08
Household Size
1 – 4 268 58.8
5 – 8 183 40.1
> 8 5 1.1
Average Family size 4.4
Economically Active Population 70.6
Dependency ratio 41.7
Households characteristics
Households characteristics : Occupation of oil palm household members
Variable family
member %
Main Occupation
Oil palm farmer 378 55.1
Non-oil palm farmer 55 8.0
Entrepreneur 79 11.5
Farm & non-farm labourer 71 10.4
Civil Servant 28 4.0
Private company employee 74 10.8
Total 685 100
Side Occupation
Oil palm farmer 73 24.1
Non-oil palm farmer 79 26.1
Entrepreneur 51 16.8
Farm & non-farm labourer 43 14.2
Civil servant 9 2.9
Private company employee 48 15.8
Total 303 100
Households characteristics : Educational attainment
n %
Respondents 453 100
Never go to school 4 0,9
Elementary School 221 48,6
Junior High School 105 23,2
Senior High School 108 23,6
University 18 3,7
Family members
Never go to school 16 0,8
Elementary School 694 34,6
Junior High School 393 19,6
Senior High School 386 19,2
University 70 3,5
Not in schooling age 448 22,3
Households characteristics : Housing
Variable Survey Indonesia*
n % %
Floor area
< 19m2 2 0.4 5.5
20 - 49m2 97 21.3 35.3
50 - 99m2 238 52.2 43.1
100 - 149m2 78 17.1 10.5
> 150m2 41 9.0 5.7
Floor area per person (m2 ps-1) 19.59
Main drinking water source
Packaged water 16 3.5 13.1
Public tapped water 36 7.9 15.3
Well pumps 277 60.7 17.8
Well and springs 76 16.7 48.4
River and rain water 50 11.0 5.2
Others 1 0.2 0.2
Households characteristics : Housing
Variable Survey Indonesia*
n % %
Lighting
State electricity 268 58.8 89.3
Privately generated electricity 167 36.6 4.3
Pumped lamp 4 0.9 0.8
Oil lamp 17 3.7 5.0
Others 0 0.0 0.6
Domestic sewage and toilet
Yes, indoor 287 62.9 63.8
Yes, outdoor 153 33.6 17.4
No 16 3.5 18.8
Households characteristics : Landholding
Land use type Number of
households
Number of
plots (Plot
HH-1)
Avg
(ha HH-1)
Min
(ha HH-1)
Max
(ha
HH-1)
Std
Dev
(ha
HH-1)
Oil palm 456 2 4.66 0.12 80.0 7.59
Rubber 95 1 1.85 0.10 20.0 2.35
Coconut 9 1 3.36 0.25 9.5 2.85
Food crops 73 1 1.39 0.16 16.0 2.38
Abandoned
land 26 1 3.98 0.25 20.0 4.78
Total 5.56 0.40 80.0 8.18
Households characteristics : Oil Palm plantation
n
Land holding (ha)
average min max sd
Type of farmer
Non migrant farmer 225 3.28 0.12 30.00 3.51
Migrant farmer 231 6.00 0.40 80.00 9.92
Land management
Partnership 137 3.28 1.00 75.00 6.49
Independent 222 3.98 0.12 80.00 7.33
Mixed 97 8.21 2.05 66.00 8.57
Households characteristics : Landholding
Type of Asset Number of assets
(unit)
Asset ownership
HH
(n=456) % of total HH
Car 61 50 10.96
Truck 55 37 8.11
Motorcycle 711 428 93.86
Bicycle 227 158 34.65
Television 412 412 90.35
Cellphone 877 419 91.89
Radio 104 104 22.81
DVD Player 255 255 55.92
Complete furniture 190 190 41.67
Refrigerator 160 160 35.09
Savings 234 234 51.32
Jewellery 377 377 82.68
Profitability of smallholding oil palm
Independent :
+ Returns to land of independent smallholder oil palm plantation : IDR 92 -- IDR 143 million per hectare
+ Return to Labor : IDR 122,000 -- IDR 178,000 per person day.
For plasma farmers (with direct link to a nucleus plantation)
+ Returns to land varied between IDR 125 -- IDR 266 million per ha
+ Return to labor vary between IDR 67,000 -- IDR 297,000 per person day
» Oil palm cultivation is not the only source of household income. About 45% of the family members included in the survey engage in non-agricultural activities
» Oil palm cultivation contributes only 61% of total family income.
˃ Sumatra : ranging from 63% to 78%
˃ Kalimantan : ranging from 31% South Kalimantan and to 61% East Kalimantan)
˃ Monthly per capita : IDR 1.34 millions IDR 1.22 million (in Sumatra) and (Kalimantan and Sulawesi )
Province / Island Plantation
sample
Household
sample
Monthly per capita income in 2009
(IDR 000)
average min max
North Sumatra 3 91 994 146 5,750
Riau 2 88 1,628 176 11,250
South Sumatra 1 30 1,521 333 4,070
Sumatra 6 209 1,336 146 11,250
West Kalimantan 1 47 747 142 2,783
South Kalimantan 1 35 1,728 140 10,208
Central Kalmantan 3 72 1,101 150 5,253
East Kalimantan 1 50 1,071 250 4,120
West Sulawesi 1 43 1,140 265 3,542
Kalimantan Sulawesi 7 247 1,123 140 10,208
13 456 1,221 140 11,250
Monthly per capita income of the household sample by province
Number
plantation
samples
Household
samples
Monthly expenditure per capita
(IDR 000) poverty
average min max poverty
line*)
Poverty
incident
North Sumatra 3 91 443 116 1,227 189 9.9%
Riau 2 88 542 199 2,048 227 3.4%
South Sumatra 1 30 425 209 898 190
Sumatra 6 209 482 116 2,048 5.7%
West Kalimantan 1 47 242 90 663 167 19.1%
South Kalimantan 1 35 407 130 975 181 8.6%
Central Kalmantan 3 72 529 108 1,883 199 5.6%
East Kalimantan 1 50 493 123 3,942 225 18.0%
West Sulawesi 1 43 474 254 870 157 0.0%
Kalimantan and
Sulawesi 7 247 439 90 3,942 10.5%
13 456 459 90 3,942 8.3%
Monthly per capita expenditure the household sample by province and Island
*) in thousand IDR, BPS (2010)
Sumatera Kalimantan & Sulawesi
Household sample engage
in oil palm cultivation to
replace their previous
livelihood,
121 households 177 households
Years of engagement < 5 years 5-10
years
10 years
< < 5 years
5-10
years
10 years
<
Household with Family
income increased after
engage in oil palm
cultivation, by years of
engagement
19% 31% 44% 22% 38% 36%
Average incrased 2.01-
times
4.38-
times
25.34-
times
3.20-
times
13.17-
times
22.34-
times
Household with Family
income increased after
engage in oil palm
cultivation by years of
engagement
1% 2% 4% 2% 1% 1%
Average decreased (%) -7% -25% -20% -47% -6% -34%
Households economy
