Partnership Models for Inclusive Oil Palm Smallholdings

EasyChair Preprint 601

Abstract

The role of oil palm plantations in improving smallholders’ income has been widely accepted. However, lack of managerial skills and capital causes smallholders to receive high interventions from third parties. This study is conducted to analyze the impact of various partnership models to the inclusive oil palm smallholdings. The data is collected from 390 smallholders in North Sumatra, South Sumatra, Jambi and Riau. Four types of partners including state, local private, foreign private companies, and NGO are covered. Inclusive levels are measured with ownership, voice, risk and reward, and compared with Mann Whitney test. Binomial Logit Model is applied to estimate the inclusive influencing factors. The results show that all types of partnerships improve smallholders’ ownership and voice, but decrease their participation in risk management. The inclusive scores are significantly influenced by existence of contract, involvement in planning and FFB pricing, and endowment.The role of oil palm plantations in improving smallholders’ income has been widely accepted. However, lack of managerial skills and capital causes smallholders to receive high interventions from third parties. This study is conducted to analyze the impact of various partnership models to the inclusive oil palm smallholdings. The data is collected from 390 smallholders in North Sumatra, South Sumatra, Jambi and Riau. Four types of partners including state, local private, foreign private companies, and NGO are covered. Inclusive levels are measured with ownership, voice, risk and reward, and compared with Mann Whitney test. Binomial Logit Model is applied to estimate the inclusive influencing factors. The results show that all types of partnerships improve smallholders’ ownership and voice, but decrease their participation in risk management. The inclusive scores are significantly influenced by existence of contract, involvement in planning and FFB pricing, and endowment.

Keyphrases: Inclusivity, Risk, Smallholders, oil palm, partnership, voice

@booklet{EasyChair:601,
  author    = {Diana Chalil and Riantri Barus},
  title     = {Partnership Models for Inclusive Oil Palm Smallholdings},
  howpublished = {EasyChair Preprint 601},
  year      = {EasyChair, 2018}}