ANALYSIS ON SUSTAINABILITY OF OIL PALM INDEPENDENT SMALLHOLDER (A Case Study of Oil Palm Independent Smallholder Kelompok Tani Petani Makmur at Lubuk Ogong Village, Bandar Sei Kijang Sub District, Pelalawan District)

Abstract

Oil palm plantations have an important role in increasing national income and foreign exchange for Indonesia and has a strategic value in supporting national development. High interest of private estate companies and smallholders on oil palm plantations has been supported by government. The development of oil palm plantations does not create only positive impacts to the economy but also negative impacts on environmental and social life. Oil palm expansion has been developed by ignoring the principle of sustainability including deforestation, land and forest fires, biodiversity loss, green house emissions, land conflicts, and social conflicts.ISPO has been established to eliminate negative impacts on oil palm development.ISPO is a certification scheme that consist of principle of sustainability through a range of principles, criteria and indicators. The objective of this study are to analyse gap between the ISPO standard and the smallholder’s practives in managing oil palm plantations, to identify barrier faced by farmers, and to identify actors in the process of certification.This study was conducted in Lubuk Ogong Village, Bandar Seikijang Subdistrict, Pelalawan District. A case study was implemented on Petani Makmur Farmer Group using descriptive analyses. The result shows that the application of ISPO standards is relatively low. Farmers have low access to information, organisation and finance. Actors that play important roles in the process of certification including government, private companies and NGOs