Search results

This paper aims to present the development of palm oil sector and future challenge in Riau Province Indonesia, which includes sustainable plantation development.

This research was conducted through a survey with developmental research method. The research location is in the Province of Riau, which is the potential development of oil palm plantation. The land areas of Riau are Kampar, Rokan Hulu and Kuantan Singingi, while the coastal areas are Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. The socio-economic and environmental aspects of sustainability level of palm oil plantations were analyzed using a multi-dimensional scaling approach that was modified into a Rap-Insus-Pom.

Development of palmoil plantations results in land conversion, posing potential erosio. In anticipating environmental damage, the Government of Indonesia imposes the Indonesian Sustainable Palm Oil (ISPO) policy. The results of ISPO policy show that Indonesian crude palm oil products are environmentally friendly.

This research is one of few studies that investigate the development of palm oil sector and future challenge in Riau Province, Indonesia. Riau Province still needs 13 units of palm oil mills with capacity of 60 tons per hour. Find strategies to regulate palm oil farming institutions and derivative products to enhance growth and economic development in the region and find production centers and development areas for palm oil local industries in potential regions.

This study aims to investigate the pattern and sequence growth or changes in formulating policy strategy.

In order to get an accurate information, in this study using rapid rural appraisal method (RRA). RRA is a method with participatory approach to obtain data/information and assessments, generally in the field in a relatively short time.

The result of index multiplier effect analysis in the rubber development region in 2010 was 1.83. In 2014 it dropped to 0.65. The conditions show decline in the rubber farming in the countryside. Natural rubber and its derivatives are believed to spur regional economic growth and be able to improve income distribution and poverty alleviation through employment. Institutional arrangement with the concept of natural rubber farming sustainability-based natural rubber (ABKA) provides two effects: first, the direct effect, i.e. the concept of ABKA provides direct benefits to the parties involved in the business. Second, indirect effects, namely, the concept of ABKA, provides benefits to the parties who are not directly involved in the company.

Originality of this paper shows that a participatory approach used in this research is an RRA and the location of the research is Riau, Indonesia, both of which have not been studied earlier.

The purpose of this study is to analyze strategies for controlling potential environmental impacts as a result of developing oil palm plantations.

Research sites in the first year have been carried out in potential areas for the development of oil palm plantations, both through plasma through Badan Usaha Milik Negara (state-owned enterprises) and Badan Usaha Milik Swasta (private-owned companies) and self-help by the community. The research locations were carried out in the Riau mainland areas, including Kampar, Rokan Hulu and Kuantan Singingi regencies. In contrast, the Riau coastal areas were Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. The two research areas have different productivity caused by differences in soil fertility. The method used for data collection is the rapid rural appraisal method, which is a participatory approach to obtain data/information and general evaluation in the field in a relatively short time.

Oil palm commodities are the most popular, especially in the Riau region. This is evidenced by the rapid development of oil palm plantations, namely, 1,119,798 ha in 2001 and increased to 2,372,402 ha in 2013. During the 2001–2013 period, the average growth rate was 6.46% per year, whereas other plantation commodities such as rubber and coconut have decreased. #R².6 An increase follows the expansion of the plantation area in the production of fresh fruit bunches (FFB). Crude palm oil (CPO) production from 1,792,481 tons in 2001 increased to 7,570,854 tons in 2013, with an average annual growth of 12.76%. CPO production capability in Riau is supported by 172 palm oil mill (POM) units with a processing capacity of 7,800 tons per hour. POM is not spread evenly but is concentrated in nucleus and plasma plantations. Independent smallholders with their scattered land located far from the existing POM. This condition causes the low quality of FFB to the mill due to the distance between the plantation and POM.

The virtue of this research is to find an institutional arrangement strategy for oil palm agriculture to spur growth through the development of the downstream palm oil industry. The strategy is intended to create economic added value so that efforts to accelerate community economic development can be increased.

The purpose of this paper is sixfold: first, to know the ability of area carrying capacity to the development of downstream oil palm industry; second, to know the potential for the development of downstream oil palm industry in efforts to improve the community through employment and business opportunities in the regions; third, to find eco-friendly institutional arrangement strategies of oil palm farming in order to spur economic growth and development; fourth, to formulate strategies for potential environmental impact as a result of institutional arrangement and development of downstream oil palm industry, both in regional and national scope; fifth, to predict the economic multiplier effect as impact of institutional arrangement and development of oil-palm-based downstream industry; and sixth, to include production centers and development areas of oil-palm-based downstream industry in potential areas.

Research location was in potential areas of oil palm plantation development, either in the form of plasma through state-owned enterprises (BUMN) and private-owned enterprises (BUMS), or in the form of self-supporting by community. The research locations were divided into two parts, namely the land area and the coastal area. The land area of Riau consisted of Kampar, Rokan Hulu and Kuantan Singingi Regency, while the coastal area of Riau consisted of Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir Regency. Both research areas had different productivity which was caused by differences in soil fertility. The required data were primary and secondary data.

Plantation activities have increased the mobility of goods in the villages, causing plantation activities to also open business and employment opportunities for people who are able to accept these opportunities. Since post-1998 crisis, the growth of oil palm plantation area in Riau increased sharply, namely in 1998, the area of oil palm plantations was 901,276 ha, in 2012, 1,119,798 ha and increased to 2,103,175 ha at the end of 2017. Through economic activities that produce goods and services required during the plantation process and the development, downstream industries will have backward linkages. The development of oil palm plantations in Riau has had an impact on economic activities in rural areas. The result of the research in the field is that the average income of farmers in the plantation subsector (especially oil palm) is Rp4,576,696 per month or $5,781.09 per year. The impact on investment in the estate subsector has been felt by rural communities. This condition also affects the purchasing power of the people, resulting in the increase of mobility of goods and people. During the period 2009–2016, rural communities enjoyed a high level of prosperity. During this period, the price of fresh fruit bunch at the farm level was quite profitable. On the other hand, the production of the plantation area also increased compared to the previous period. The impact of rising prices and increasing production of farmers is that the farmers’ welfare index in the countryside had a positive value of 0.43. This index showed the increase of farmers’ welfare from the previous period by 43 percent.

There are few previous studies which have comprehensively and specifically reviewed the regional economic empowerment through institutional arrangement and development of oil-palm-based downstream industry. The development of oil palm plantations aims to eliminate poverty and underdevelopment, especially in rural areas. In addition, it also pays attention to equity. In broad sense, agricultural development which is based on plantations aims to improve the welfare of the community so that there is a change in the pattern of life of the surrounding community. On the other hand, the success of plantation development that is based on oil palm agribusiness is expected to reduce income inequality between community groups and between regions.

The purpose of this paper is to develop strategies for potential environmental impacts as a result of institutional arrangement and development of oil palm downstream industry both regionally and nationally.

The research location is in the areas potential for oil palm plantation development, either by plasma through BUMN and BUMS or self-supporting by the society. The research location will be divided into two parts, namely, the land area and the coastal area. The Riau land areas are Regency of Kampar, Rokan Hulu, and Kuantan Singingi, while Riau coastal areas are Regency of Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. Both research areas have different productivity due to the different soil fertility levels. The sustainability level of oil palm plantation from the socio-economic and environmental aspects is analyzed using the multi-dimensional scaling approach modified into Rapid Appraisal-Index Sustainability of Palm Oil Management.

In Riau Province, the development of oil palm is quite rapid. This is reasonable for several reasons which include the following supporting factors: the geographical condition of the Riau region is very supportive; the high demand for palm oil derivative products; the existence of market guarantee for oil palm farmers; the higher income oil palm generates than other plantation crops; and the relatively flat area. Most of the problems faced by oil palm farmers are the use of less good seeds, the length of the fruit laying at the location of the plantation, the inadequate production road, the relatively far distance to palm oil mill (POM) (National Agency of Drug and Food Control), the tendency of determining the unilateral revenue of the POM, the collectively measurement of revenue and the general revenue information. The development of oil palm plantations has created an entrepreneurial capability for farmers who are able to capture business opportunities in the agricultural sector, especially the plantation sub-sector.

The originality of this paper shows the comprehensively control strategy, potential of environmental impact and palm oil plantation. The method used for data collection was rapid rural appraisal method because accurate information is needed in a limited time as it relates to decisions related to village development that must be taken immediately. The study area was conducted in Riau Province because Riau Province is one of the biggest palm oil producers in Indonesia. The study sites will be divided into two, namely, the land area and the coastal area.

An important global issue is the harm that businesses are posing to the environment. However, the impact of small and medium enterprises’ (SMEs) operations on the environment often goes unnoticed, and their willingness to adopt green innovations is limited. Therefore, this study aims to examine the factors influencing the adoption of green innovation among SMEs in Indonesia.

The research used a survey to investigate SMEs operating in the pineapple-based food sector, which is a leading commodity in Riau Province, Sumatera, Indonesia. Specifically, the research focused on the districts of Kampar, Siak and Dumai, with data collecting taking place from April to August 2022. SMEs were selected purposively based on a minimum operational tenure of 10 years. A total of 225 respondents met the selection criteria and participated in this study. The research data were collected through a questionnaire. To analyse the data, the study used structured equation modelling with partial least squares.

There are three categories of factors influencing SMEs to adopt green innovations: technological, environmental and organizational. Of these factors, organizational factors emerge as the primary determinant of green innovation adoption among SMEs in the country.

The generalizability of the findings in this study is limited due to the specific focus on food sector SMEs in Riau Province. To obtain more generalized results, it is recommended that future research be conducted on SMEs across different sectors in other cities and countries.

This study provides a deeper understanding of the specific dimensions of organizational factors that play a crucial role in driving green innovation adoption, especially within the context of SMEs in the food sector in Indonesia.

The purpose of this paper is to do an in-depth comprehension about local wisdom values related to the forest management in Nagari Koto Malintang, Tanjung Raya District, Agam Regency, West Sumatra Province, and to find a communication model in the forest management based on environmental awareness. Research on indigenous forest management has been widely done, but information related to information flow and communication pattern of indigenous people in conveying local wisdom values to the management of forests is little to find.

The design employed in this research was case study and field research. Field research is the research to intensively examine the background of current state of the environmental interaction according to these social units: individual, group, institution or society. The research was undertaken in Nagari Koto Malintang, Tanjung Raya District, Agam Regency. The location selection was conducted purposively under the preserved condition of the forests in Koto Malintang, despite the damages occurring to most of forests in Indonesia. The preserved condition of Nagari Koto Malintang forest is characterized by many trees with diameter of 2–3 meters left undisturbed by the communities, so that they are protected from the danger of landslides. The determination of informants in this research was made by purposive sampling.

The community and government of Nagari Koto Malintang has arranged the space and land of Nagari, by making a division as follows: the upper area is made into catchment area, middle area is made into a plantation area and settlement area and the lower area is made into cultivated land. The ecologic benefits of the forest for the community of Nagari Koto Malintang are: liberating the community from the threats of flood and galodo, providing sufficient water availability, providing good air quality and maintain and preserve flora and fauna. The perceived economic benefits are: the availability of adequate irrigation for agriculture, plantations, tabek and ponds of which crops provide economic benefits to the community. Socially, forests make the community members’ relationship grow closer, improve community participation in forest management, create jobs and maintain local knowledge and institutions.

This is one of few studies resulted from different customs and norms of each indigenous community, thus it is necessary to study the uniqueness of Nagari Koto Malintang community in managing the forest. This research was conducted to obtain complete description of how indigenous people of Nagari Koto Malintang community build communications and disseminate information related to wisdom, thus giving rise to common awareness in the sustainable forest management and ultimately bringing up a model of forest management communication.