Social and economic characteristics of ISPO certified oil palm smallholders

Abstract

Oil palm plantations contribute to job creation and community welfare. Nevertheless, this commodity is still experiencing business sustainability problems among smallholders in Indonesia Certification Palm Oil (ISPO). This research studies the existing conditions of ISPO certified smallholders and has not been authenticated based on economic and social characteristics. The research was conducted in Batanghari Regency with the use of primary and secondary data. The result showed that the social aspects of smallholders who have ISPO certified are average in the productive age range. However, there are no differences in education at the primary level. As for the number of family members, smallholders who are certified than uncertified have a more significant number of family members. The farming experience of certified smallholders is lower than that of non-certified, related to the age of the crop owned to motivate and carry out sustainable agricultural practices. While from the economic aspect, based on the primary and other search points, the average number for certified is more concentrated with their palm oil cultivation by 73.86 percent than non-certified with diverse business activities. There are variations in the social and economic characteristics of certified and uncertified oil palm farmers. Good agricultural practices following the norms are necessary to ensure the sustainability of oil palm cultivation. In the future, smallholders are expected to encourage improved farming practices and improve their livelihood assets