JAKARTA – Various studies have concluded that the income of oil palm smallholders is higher and grows much faster if compared to those of non-oil palm farmers, the Palm Oil Agribusiness Strategic Policy Institute (PASPI) reported recently.

PASPI said in its report that based on the study conducted by Budidarsono et.al. (2013), the income of oil palm farmers will proportionally increase with the age of their oil palm plantations. His study also found that the smallholders in Riau province enjoyed an increase of income at 200-300 percent after 5 years of cultivating their oil palm plantations. Then their income will further increase by 400 – 1,300 percent after 5-10 years of cultivation and steadily rose to 2,200 – 2,500 percent after their oil palm plantations reaching more than 10 years of age.

Other studies summarized by PASPI found that the income of oil palm smallholders was stable as they get it regularly every month from selling their fresh fruit bunches (FFB).

PASPI’s study also found that the increase of the oil palm smallholders’ income has not only benefited the oil palm smallholders and their families, but also enjoyed by other non-oil palm farmers around the oil palm plantation areas through the economic spillovers.

PASPI reported that based on a study conducted by Dib et.al (2018), the economic spillovers, which are resulted from the investments of the oil palm plantations, include job creations in other economic sectors that are enjoyed by the non-oil palm plantation farmers, who do not directly involve in the oil palm plantations.

“Besides the economic sectors that are developed by the local villagers, the oil palm plantation companies have also initiated various social and environmental activities and developed various businesses (besides the palm oil business) that empower the villagers through their programs of Corporate Social Responsibility (CSR),” PASPI reported. (*)

Source: Warta Ekonomi