Institutional strengthening model of oil palm independent smallholder in Riau and Jambi Provinces, Indonesia (original) (raw)
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CERN European Organization for Nuclear Research - Zenodo, 2022
Oil palm independent smallholders need support from various efforts, one of which is through a program to strengthen independent smallholder institutions. Integrated institutions with the support of the IT Support System have influenced efforts to improve the welfare of independent smallholders, especially during the Covid 19 pandemic. This study aims to identify institutional problems, identify the role of actors in institutional strengthening and determine the design of information technology as a strengthening strategy. This research used a soft system approach (SSM) supported by qualitative and quantitative data collected from the Pelalawan and Kampar regency of Riau Province in Indonesia. The implementation of the seven steps of SSM supported by the Strategic Assumption Surfacing Technique and Analytic Network Process is based on knowledge and judgment from prominent experts. The local government is the key actor who plays an important role in strengthening independent smallholder institutions. Meanwhile, coaching and mentoring independent smallholders and cooperatives is a key program that must be implemented. Institutional strengthening of independent smallholders is a joint effort through synergy, support, and partnership between the government and business actors, from the plantation sector to oil palm processing. Institutional strengthening of independent smallholder farmers will increase the palm oil business profits and social welfare of the actors, including the smallholder farmers. The existence of information technology is believed to strengthen further the integration of roles between actors in the context of strengthening oil palm independent smallholders' institutions within supply chain strategy.
Proceedings of The International Conference on Agriculture, Engineering, Social Science and Education (ICAESSE) , 2024
The palm oil industry has become a major driver of the Indonesian economy. In this respect, independent smallholders play an important role as suppliers of fresh fruit bunches in the palm oil-processing industry. However, independent farmers are in a weak position in the palm oil supply chain, from both economic and global demand perspectives. This study aims to (1) identify the main problems faced by independent smallholders, (2) summarize the findings of previous research that examines aspects of partnerships for independent smallholders, and (3) provide directions for future research on the subject of partnerships involving independent smallholders in the Indonesian palm oil supply chain. This study applies a concise review to achieve its research objectives. The results of the literature review show that the types of problems faced by independent smallholders are quite diverse, among which the most reported are low plantation productivity, lack of capital, including the inputs needed to run plantations, and limited marketing access (oil palm processing industry). Generally, related studies can be grouped into three groups: assessment or evaluation of partnership models, selection of partnership models based on certain aspects, and development of partnership models. Future research directions include the implementation of the proposed partnership model, identification of key successfactors of the partnership model, and deployment of quantitative methods to test various scenarios of partnership models for smallholders in the palm oil supply chain.
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