Logo 3 NewVolume 3, No. 5 May 2024 (574-585)

p-ISSN 2980-4868 | e-ISSN 2980-4841

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Fluctuation Price Sell Palm Farmers and Impact Socioeconomic SocietyFarmer Palm Oil in Rokan Hilir Regency Province Riau

 

Indra 1*, Oman Sukmana2, Wahyudi3, Yennita Fachrina4

1,2,3,4Universitas Muhammadiyah Malang, Malang, East Java, Indonesia

Emails: indrabpkad72@gmail.com

 


 

ABSTRACT:     


Oil palm is the prima donna commodity of plantation crops in this area. Based on data from the Indonesian Ministry of Agriculture, in 2023, Riau Province was recorded as having an oil palm plantation area of 2.87 million hectares or 20.68 per cent of the total area of oil palm plantations spread across 26 provinces in Indonesia. Riau Province occupies the first position as the province in Indonesia which has the largest area of oil palm plantations in Indonesia. In the 11 year period (2011-2021), the area of oil palm plantations in Riau Province increased by 49.07%. This research discusses the impact of fluctuations in the selling price of palm fruit on the socio-economic conditions of palm oil farming communities in Rokan Hilir Regency, Riau Province. The research was conducted using primary data and secondary data, as well as descriptive analysis methods. The research results show that fluctuations in the selling price of palm fruit have a significant impact on income, employment and social conditions of the community. Based on these findings, it is recommended that the Government can provide offers and encourage the development of derivative products from palm oil to maintain the stability of farmers' selling prices for palm oil. This research provides important insights for government policy in improving the welfare of oil palm farming communities in the region.                                                                


Keywords: Price Fluctuations, Fruit Palm Oil, Socio-Economic Impact.

 

 

INTRODUCTION

Riau Province is a province with source Power abundant nature.​ Mention area oil For province This can seen from the content oil in the stomach​ of the earth and CPO from coconut palm oil on the surface of the earth (Pazli et al., 2022; Pazli & Pardhana, 2023). Location of the province This very strategic Because is in the groove trading international interface​ with Singapore and Malaysia. On the other hand, it is on the East Sumatra Crossing route, which is a fast area​ to grow and thrive.

In fill-in activity development, Government Riau Province refers to the Five Main Pillars, namely (Greenland et al., 2022; Zhang et al., 2023): 1) development economy based people, 2) guidance and development source Power humans, 3) development of health and sports, 4) development of art culture, and 5) development in frame increase faith and piety. Growth achieved in the economy​ province in 2010 amounted to 7.16 per cent (without oil and gas) and experienced enhancement compared to the year previously, which was just reached 6.56 per cent. The growth that has been achieved of 3.95 per cent originates from the sector of agriculture. If seen from a year previous, in 1996, sector agriculture as bone back Community economy in rural areas only experienced growth of 2 per cent. His height growth sector of agriculture Was supported by plant plantation ​ exports, especially coconut palm oil, rubber, and coconut (Gan et al., 2023; Garg et al., 2023).

Palm oil is a commodity, the prima donna of plants plantation Which owned area This. Based on data from the Ministry of Agriculture, in 2023, ProvinceRiau recorded its own wide oil palm plantations of 2.87 million hectares or 20.68 percent of the total wide area oil palm plantation spread across 26 provinces Which is in Indonesia (Rolesya et al., 2023). Province Riau occupy the position First as a province in Indonesia that owns the largest oil palm plantation in Indonesia. In 11 year period (2011-2021), extensive oil palm plantations in the Province Riau increase as big as 49.07% (Ismiasih & Afroda, 2023).

Riau Province occupies position rank I as the province with the production of coconut palm in Indonesia (Febrian et al., 2020). In 2019, Riau province succeeded in print number production of 9.51 million tons of CPO, but in 2022, it will decline to number production amounting to 8.74 million tons of CPO (Hasan et al., 2022). The decline in production originates from Lots of factors like system productivity plantation coconut less palm oil Good until factor policy domestic and policy abroad from importing countries coconut palm oil (Lestari & Oktavilia, 2020a; Murphy et al., 2021).

Plantation area coconut palm oil in Riau province according to exploitation status in 2022 no show change means (Yahya, 2024). Like the year before, mastery wide area oil palm plantations were Still dominated by plantation people. Amounting to 1.76 million hectares or 61.44 per cent of oil palm plantations mastered by plantation people, followed by plantation big private Which controlled 1.03 million hectares or 35.94 per cent of oil palm plantations, as well as the remaining 0.08 million hectares or 2.62 per cent mastered by plantation big country (Lestari & Oktavilia, 2020b; Yahya, 2024).

As a province producer of oil palm, the largest in Indonesia, Riau has the potency To promote oil palm And core palm inside​ and outside the country (Hariyanti & Syahza, 2024). Market potential which will absorb marketing oil palm oil (Crude Palm Oil /CPO) and oil core palm kernel (Palm Kernel Oil / PKO) is industry fractionation/ramification (esp industry oil fried), fat specifically (cocoa butter substitute), margarine/shortening, oleochemical, and soap bathe (Fosch et al., 2023).

Coconut plantation palm production is the primary Fresh Fruit Bunches (FFB) (Windiastuti et al., 2022). Fresh Fruit Bunches are a part of the production of coconut palm oil, which is a product at the beginning of the future. They will processed as oil crude CPO ( Crude Palm Oil ) and palm kernel (carnal) as the main product (Jeguirim et al., 2023). Fruit coconut palm is what is known by the name Fresh Fruit Bunches (FFB). For harvesting FFB, the harvester must use dodos or a knife with a pole to cut fruit from the stem tree. TBS already Ready harvested very easy identified through color red bright as well as if there are 10-15 pieces fell on the ground (Dolah et al., 2021).

These fresh fruit bunches will be sold by farmers to factory coconut palm oil (PKS) for done processing more carry on become two product main, i.e Oil Palm Crude (CPO), which is extracted from mesocarp or meat fruit, and Palm Kernel Oil (PKO), which is derived from from seed hard in the middle. Next, the CPO is transferred to factory processing. For processing, becomes oil vegetable (cooking oil, cream and margarine), ingredients oleochemicals (used in detergents and lubricants), biodiesel (material grilled) and sour laurat (used in cosmetics and soap). Temporary that I, ' cake,' i.e. Palm Kernel Cake (BIS) consisting of a mixture of mesocarp fibres and shells remaining in the engine extortion entered to tool depericarper, which separates fibre mesocarp and seeds. Mesocarp fiber is used as biofuels or material burn life in factory boilers coconut palm oil, which produces a moving steam​ turbine To give power to the factory. Seed coconut remaining palm, also known as palm kernel or kernel, cracked and separated the shell. Shell is taken for sale as material burn biological, while the kernel experiences destruction more carry on For produce palm kernel oil (PKO) and Palm Kernel Expeller (PKE). Palm kernel oil Crude (CPKO) also undergoes a refining process before being used in making products food like non-dairy cream and ice cream; the remainder production from palm kernel meal (PKE) is generally used for feed livestock (Director et al., 2021)

Production oil Riau palm oil, in part, is exported abroad, and the rest is marketed domestically.​ Export Palm oilRiau spans five continents, namely Asia, Africa, Australia, America and Europe, with a major in Asia. In 2022, the top five countries Riau CPO importer is India, Italy, Malaysia, Netherlands And France. Total CPO exports to five countries reached 95.60 per cent of total Indonesian CPO exports. Country's objective largest CPO export is India, with a volume of 1.33 million tons or 84.93 per cent of the total volume of Riau CPO exports with a value of US$ 1.31 billion. Next is the most CPO Lots exported headed to Italy and Malaysia, with contribution exports amounting to 3.66 percent and 2.60 percent of the total CPO exports. Then followed Dutch with a volume of CPO exports amounted to 2.33 per cent And France with a volume of CPO exports amounted to 2.08 per cent, Which is displayed in Figure 2 below.

One arealevel II in the Province Riau, Which Also becomes producer palm, is Rokan Hilir Regency. Regency This own wide land oil palm plantation people as much as 195,204 Ha, which consists of plants Not yet producing (TBM) area of 23,655 Ha, plants produces (TM) an area of 156,703 Ha and plants old/damaged (TTR) covering an area of 14,846 Ha. In Rokan Hilir Regency This recorded as many as 62,142 heads Family Which become farmer oil palm plantations. Production of CPO palm oil from Rokan Hilir Regency as much as 512,529 tons in 2022. Productionoil palm plantation in Rokan Hilir Regency for 3 (three) years final assessed No show enhancement in a way significant. Data from the Central Statistics Agency 2023 records production oil palm plantation people in Rokan Hilir Regency from 2020 to 2022 is around 512,500 tons (Hidayatullah, 2023).​​

Based on research conducted by Lifianthi et al. (2022), there are 2 channels of marketing of farmers' Fresh Fruit Bunches (FFB). self-help in Bagan Sinembah District, Regency Rokan Downstream. Channel First is from farmer/planter who sells fruit palm oil that has been harvested to the trader collector palm oil, then the trader collector sends fruit palm to trader large (Ram/SPB owner), and so on, fruit palm continues to PKS for processing more carry on. The second channel​ is from farmers/planters who directly sell fruit palm results harvest to large traders (Ram/SPB owners) and so on, continuing to PKS for processing more carry-on. Channel marketing of Fresh Fruit Bunches (FFB) to farmers is self-subsistent until PKS influences price in level farmers.

Research ever​ done related to fluctuating pricing and marketing fruit palm farmers is what was done by Hasibuan (2020), who took the title Problem Farmer Self-help and the Polemic on the Price of Fresh Fruit Bunches (Study Cases in the Province Jmbi). The next study was by Rusdianasari et al. (2023), who took the title of Analysis Marketing of Coconut Fresh Fruit Bunches (FFB). Palm Farmer Self-help in Bagan Sinembah District Regency Rokan Downstream. The is Ismiasih (2023), which takes its title study Factor Determinant Production Coconut Palm People in Riau Province. The study, furthermore, is what was done by Ikhsan et al. (2023), who took the title Perception Farmer Coconut Palm to FFB Price Fluctuations in Districts Sematu Jaya. The final is research conducted by Hidayati et al. (2023), who took the title Impact Coconut Palm To Community Economy in the Regency Rokan Downstream, Riau.

The research is expected to provide practical and theoretical benefits. Practically, it can aid local governments in formulating effective policies to stabilize prices and enhance the productivity of palm oil farmers, thereby supporting economic growth and community welfare. For farmers, the study offers insights into factors affecting price fluctuations and productivity, enabling them to take informed actions to improve their yields and incomes. The palm oil industry can use the findings to adjust strategies in response to market challenges. Theoretically, the research contributes to the field of agricultural economics, specifically in analyzing the socio-economic impacts of commodity price fluctuations and serves as a reference for future studies on the palm oil industry in Riau Province. The implications include the need for supportive policies and regulations, educational programs for farmers, and enhanced collaboration among government, industry, and farming communities to ensure sustainable and competitive palm oil production.

 

RESEARCH METHODS

The study uses analysis using primary data and secondary data. Primary data was obtained from observations and interviews direct through a questionnaire addressed to all​ respondents. Primary data collected covers identity society (age, level formal education, total member family and length of domicile), plantation and business status (employment status main and business others), and income public as well as things that are felt public with existence factory processing coconut palm oil in the environment place stay, fine things positive nor things considered​ negative. Secondary data obtained from agency government Regency Rokan Downstream, Riau Province Plantation Service and Regency Plantation Service Rokan Hilir, Central Statistics Agency Riau Province and Central Statistics Agency Regency Rokan Downstream, in the form of: broad land plantation coconut palm oil, quantity production plantation coconut palm oil, quantity CPO exports, level education public as well as demographics sub-district (state general area, situation population, facilities and infrastructure) as well as other necessary data.

Study This carried out in Rokan Hilir Regency, Province Riau. The reasons for choosing this location are Because sub-sector oil palm plantation included in​ the leading economic sectors that, is Agricultural Economic Sector, Forestry and Fisheries. In Rokan Hilir Regency there is land oil palm plantation farmer self-subsistent covering an area of 195,204 Ha or 10.86% of the total wide land oil palm plantation public farmer self-subsistent Which is in the Province Riau This. There are 80,310 families hang its economy on sub-sector oil palm plantations. Amount Palm Oil Factory (PKS) which is in the district This There are 22 PKS roles in move wheel economy public Rokan Hilir Regency.

 

RESULTS AND DISCUSSION

Impact Selling Price Fluctuations Fruit Palm Oil in the Regency Rokan Downstream

Regency Rokan Downstream is a district located in Riau Province, Indonesia. Capital​ Regency Rokan Downstream is in Bagansiapiapi. Regency This was previously included in Regency Bengkalis. Regency Rokan Downstream have a wide amounted to 8,881.59 km² and a population of a total of 658,407 people (2022).  The resident is originally from the Malay Rokan Downstream ethnic group. Administrative area Rokan Downstream divided in 18 sub-districts, 25 sub-districts and 173 villages. Regency Rokan Downstream is located in the northernmost part of Riau. The province is also a coastal region east of Sumatera Island. District Area Rokan Downstream located at coordinates 1°14' to 2°45' North Latitude and 100°17' to 101°21' East Longitude.

Based on location administrative, Regency Rokan Downstream’s own boundaries as following:

a)    Adjacent North: Province Sumatra North, Strait Malacca

b)    Adjacent South: Regency Bengkalis and Rokan Hulu

c)     Adjacent West: Province Sumatra North

d)    East: Dumai City

Regency Rokan Downstream’s own land area​ garden coconut palm covering an area of 224,678 m2 with a production volume of 537,644 tons of CPO. Land Plant Produces (TM) an area of 180,440 m2; meanwhile, the rest is land Plant Not yet Produced (TBM) and land plant Old/damaged (TTR). The area with wide land oil palm plantation plants produce biggest is in the District Cape Medan, with a wide land of 22,571 Ha. Whereas the area with wide land oil palm plantation plants produces smallest is in the District Sinaboi, with a wide amounting to 950 m2. More can be seen in the table below​ .

 

Table 1. Area Land and Palm Oil Production per District Year 2022

No

Subdistrict

Area

Production

Productivity

Farmers (KK)

TBM

TM

TTR

Total

1

Fort

944

6,078

831

7,853

16,608

2,733

3,641

2

Fort Darussalam

931

7,229

58

8,218

20,222

2,797

3,120

3

Bangkok

1,070

2,800

216

4,086

6,708

2,396

2,389

4

White Land

2,565

20,763

1,429

24,756

58,150

2,801

11,988

5

Rimbo Transverse

663

8,240

289

9,192

25,845

3,137

2,660

6

Sinembah Chart

598

13,407

1,595

15,600

48,901

3,647

4,647

7

Sand Lime Cotton

3,174

6,751

5,806

15,731

17,377

2,574

3,636

8

Synaboi

1,013

950

80

2,043

2,574

2,711

728

9

White Land Tj . Oppose

866

6,348

647

7,861

18,751

2,954

4,268

10

Pujud

1,481

19,983

1,727

23,191

49,379

2,471

8,701

11

Hampar Stone

546

2,039

337

2,922

5,404

2,650

1,111

12

Intersection Right

1,799

19,052

727

21,578

58,023

3,046

7,815

13

Bangkok Pusako

3,082

18,869

1,768

23,720

61,270

3,247

6,820

14

Rantau Kopar

311

1,438

83

1,832

4,039

2,809

911

15

Connection

705

2,559

183

3,447

7,706

3,011

1,990

16

Cape Medan

1,207

22,571

907

24,685

63,869

2,830

8,373

17

Jaya Hall

2,767

8,768

588

12,123

27,653

3,154

3,344

18

Greater Sinembah Chart

1,645

12,598

1,598

15,840

45,165

3,585

4,168

Garden Farmer Self-subsistent

25,366

180,440

18,869

224,678

537,644

2,980

80.310

Source : Riau Province Plantation Service, 2023.

 

Based on District BPS data Rokan Downstream (2023), the total number of residents of Regency Rokan Downstream is as many as 662,546. The composition of residents included in the age of the Labor Force is as many as 318,395, and the total number of residents Working Is as many as 304,322.

 

Figure 1. Composition Resident Age Force Work Rokan Hilir Regency Year 2022

 

Source: BPS, 2023

 

Resident categorised as to in resident age Work if has 15 years old or more. Resident age Work was differentiated into two groups, force Work And No force Work. The measurements based on period reference (time reference), ie activity Which done a week Which Then. Table 1 shows the percentage of force Work And No force Work according to activity main And type gender in Rokan Hilir Regency 2022. Force​ Work consists of residentsWork And unemployment. Indicator, this is very much needed Because residents who work will contribute actively to the economy.

Composition power Work describes a comparison of the amount of power work at something field business certain to all over power Work. Composition power works in Rokan Hilir Regency can be seen in the image below.

Figure 2. Percentage Resident Which Works According to Field Work Main And Types Gender in Rokan Hilir Regency Year 2022

 

Based on the image above, in 2022, the highest contribution to absorption power Work are in the sector of agriculture, that is amounting to 47.95 per cent in the Regency Rokan Downstream. Sector's biggest second in absorption power work in 2022 is​ sector service, amounting to 41.25 per cent. Meanwhile, sector manufacturing capable absorbed 6.27 per cent of the total force work that has been done Work. Workers Men dominate the sector of agriculture And manufacturing, and the sector of service is dominated by Women. From the composition of power Work sector agriculture above, as many as 80,310 families in Rokan Hilir Regency try as farmers in oil palm plantations.

According to Sukowati (2022), fluctuations in the price of FFB producers from year to year are one of the uncertainty risk farmers face. Farmer palm, Which assumed risk averse, will always try To avoid risk. Effect well-being, Which results from reducing fluctuation, the price of FFB is very small for Indonesia. The fluctuation of the price of FFB in Indonesia does not influence income too much from the results of FFB sales to farmers' palm oil. Fluctuation in the price of TBS isn't a threat to farmer palm Because however fluctuation in FFB pricehappens No too influence the well-being of farmers.

In macroeconomics, the cost of business cycles is decreasing level welfare, and this caused by business cycle fluctuations. Barattieri et al. (2021) introduced measuring the cost of business cycles as a percentage enhancement consumption. With the assumption that business cycles show the existence of random shocks around the trend line, Lucas argues that the cost of business cycles is certainly very small and, as a result, policy stabilization.

The fluctuation of the price of FFB in Indonesia does not too influence income from the results of sales of FFB to farmers' palm oil. Fluctuation in the price of TBS isn't a threat to farmer palm Because however fluctuation in FFB prices that occur No too influence effect of well-being of farmers. The government, as a regulator regulations, can take important points from the study. This that settings about FFB price at level farmer No matter main thing that is necessary done. This is Because, based on the study, fluctuation in the price of TBS isn't matter main Which influences the well-being of farmers palm oil. Influence fluctuation: The price of FFB is very small to affect well-being. Farmer palms can be made by the government To emit regulation for the well-being of farmer palms from the side other than the price of FFB producers. For example, in matter enhancement management land, productivity, equality inequality, access in the region and so on (Sukowati, 2022).

On its development formulated Regulation Governor Riau Number 5 of 2021 concerning Change On Regulation Governor Riau Number 77 of 2020 concerning ProceduresDetermination Price Purchase Bunches Fruit Fresh Palm Oil Production Planters in the Province Riau, government province And appropriate district/city with his authority obliged For facilitate partnership between company partner plantations with institutional planters. Partnership in matter This specifically in determination And application price purchase bunch fruit fresh palm oil owned by institutional planters by company partner plantations ( Hatmaja , 2022).

Furthermore, the governor formed a team determination the price purchase of palm oil FFB Which its membership came from: 1) Elements Government Area; 2) Representative company growers/associations palm oil entrepreneurs; 3) Representative institutional planters and/ partner oil palm planters (Ministry Ministry Agriculture Republic , 2018).

As efforts increase the well-being of farmers, on document Plan Development Period Intermediate Regional (RPJMD) Province Riau 2019-2024 GovtProvince Riau VISION is: (Realization Province Riau Which Empower Competitive, Prosperous, Dignified And Excellent in Indonesia) abbreviated with RIAU BERSATU acronym. 3rd MISSION three namely1: Making it happen Economic DevelopmentInclusive , Independent And Empower Compete. The goal is to realise the economy, Which is independent And Empowering competitive, with the target of increasing economic independence and decreasing the gap in income (Government Province Riau , 2019, p. 2).

In the implementation of the vision And mission as well as all problems Yes, Govt Province Riau has compiled a plan (Renstra 2020-2024). A number of program related plan and strategic in increase capacity And productivity farmer self-subsistent namely: 1) Intertwining PKS and International Finance Corporation (IFC) partnership for give agronomy training, law And business to farmer self-subsistent; 2) Planting program returning (replanting) farmers self-help (Department Plantation Province Riau , 2020, pp . 44–45).

Whereas direction policy strategically related to farmer palm self-subsistent that increases capacity source Power human resources (HR) in carrying out consultation Which proceeds And sustainable; push And facilitate institution instructor And institutional farmer, doer commercial (stakeholder) and ability And independent institution company For utilise opportunity business Which There is For increase agribusiness. Efforts the made through two programs, namely: 1) Increasing capacity, skills, knowledge And independence of farmer And personnel/equipment through training; 2) Strengthen empowerment of institutional farmer Good economic (cooperative) as well as social (association) (Dinas Plantation Province Riau , 2020, p. 62).

In context, policy public based on Minister of Agriculture Regulation No.01/ Permentan /Kb.120/1/2018, government Province Riau publishes a letter decision (SK) No.1789/XII/2022 dated 12 December 2022 concerning the Determination Team Price Purchasing Palm Oil FFB Production Planters in the Province Riau. The team consist of 1) the Governor And his ranks as builder And director; 2) the Organization Device Regional (OPD), which field the plantation on each regency as director. Whereas the team executor is chaired by Head of Service Plantation Province Riau; 3) the Secretary by the secretary service Plantation Province Riau; 3) Members cover staff Service Plantation Province Riau, APKASINDO, ASPEKPIR, PBN, and PBS.

Service Plantation Province Riau has make standard operational Facilitation procedures (SOP). partnership processing sustainable between company institutional partner plantations , in particular institutional planters self-help in the Province Riau. The objective from this SOP that is:

a)    Facilitate partnership between company plantations/PKS with institutional planters Good plasma partnerships or partnership self-subsistent so that can enforced price purchasing fresh coconut fruit bunches palm institutional Planters in Riau Province refer to prices set by the government Riau Province.

b)    Give protection to institutional planter partners To obtain the price of fresh coconut fruit bunches fair palm oil.

c)     Controlling and regulating the management and trade system of fresh coconut fruit bunches palm To avoid competition No Health between fellow company plantations/PKS.

Social Impact

a.      Developmental Patterns Resident

An increase in residents can interpreted as an enhancement of the population affected by the level​ of birth, death and migration or displacement of residents. The development of residents is the percentage of density of residents in the District Rokan Downstream, which can calculated by a comparison of the density of residents from year to year.

The comparison amount of density residents in range time for 4 (four) years is 4.0%, where the density population per km2 in 2020 will be 72 people/km2 and in 2023 it will be 75 people/km2. The fluctuating price of fruit palm oil in the Regency Rokan Downstream Still does not have a big impact​ on the development density of residents in the District Rokan Downstream.

 

Table 2. Percentage Population and Density Population per District in the Regency Rokan Downstream 2020 - 2024

Subdistrict

2020

2021

2022

2023

Percentage Resident

Density Population / Km2

Percentage Resident

Density Population / Km2

Percentage Resident

Density Population / Km2

Percentage Resident

Density Population / Km2

 

 

 

 

 

 

 

 

 

White Land

10.85

36

10.89

37

10.93

38

11.24

39

Pujud

5.33

34

5.31

35

5.3

35

5.25

35

White Land Tj . Oppose

2.30

74

2.31

75

2.32

77

2.43

81

Rantau Kopar

1.03

29

1.04

29

1.04

30

1.03

29

Cape Medan

5.69

5.66

5.62

5.69

Sinembah Chart

10.96

82

10.92

83

10.87

84

10.28

80

Intersection Right

3.90

56

3.84

56

3.79

56

3.83

57

Greater Sinembah Chart

3.16

3.18

3.19

3.27

Jaya Hall

8.38

8.28

8.18

8.18

Fort

4.02

66

4.09

69

4.16

71

4.17

72

Sand Lime Cotton

5.85

56

5.83

56

5.81

57

5.73

57

Fort Babussalam

3.74

35

3.76

36

3.78

37

3.77

37

Bangkok

12.36

166

12.35

168

12.35

171

12.28

171

Synaboi

2.88

55

2.96

57

3.03

59

3.12

62

Hampar Stone

1.48

33

1.5

34

1.52

35

1.5

35

Connection

2.49

34

2.49

35

2.5

35

2.54

36

Jungle Transverse

5.9

160

5.91

162

5.92

166

5.96

168

Bangkok Pusako

9.67

84

9.69

86

9.71

87

9.71

88

Rokan Downstream

100

72

100

73

100

74

100

75

Source : BPS, 2023

 

b.      Employment

Work is a form of social status for somebody in the group or public. Economic development is one attempt​ in the creation field to increase participation and reduce the amount of unemployment for residents around the construction site.

In 2022, total public Work as many as 304,322 people from the total amount of public age force work in Rokan Hilir Regency, a total of 482,491 people, or as much as 63.07% of the total public age force Work. The rest, as many as 14,073 people or 36.93%, constitute unemployment, like the one seen in the table below​. As many as 47.95% are workers working in the agriculture sector, or as many as 145,922 people. Based on BPS records, as many as 80,310 families working in oil palm plantations are self-subsistent.

When compared with 2020, there is an enhanced amount of public farmer self-help in the District Rokan Downstream. There are 62,142 working families as farmer palm self- help in 2020. Total the increasing in 2022 to 80,310 families, or grow amounting to 29.24%. The growth of public farmers’ self-subsistence is also accompanied by the addition of wide land garden coconut palm from 195,204 Ha to 224,678 Ha (an increase amounted to 15.10%). Wide land plant production also increased from 156,703 Ha to 180,440 Ha. Condition This allegedly exists treat conversion land done by society than before working in agriculture non, palm become farmer oil palm plantation.

 

Table 3. Area Land And Palm Oil Production per District 2020​

No

Subdistrict

Area

Production

Productivity

Farmer (KK)

TBM

TM

TTR

Total

1

Kubu

868

5.756

767

7.391

16.266

2.826

3.175

2

Kubu Darusalam

915

7.128

46

8.089

20.115

2.822

2.977

3

Bangko

1.016

2.121

169

3.306

6.037

2.846

1.649

4

Tanah Putih

2.356

16.606

789

19.751

53.907

3.246

9.500

5

Rimbo Melintang

615

8.055

260

8.930

25.687

3.189

2.388

6

Bagan Sinembah

578

12.927

1.324

14.829

48.431

3.747

4.335

7

Pasir Limau Kapas

2.765

5.186

5.131

13.082

15.578

3.004

2.884

8

Sinaboi

950

892

68

1.910

2.527

2.833

624

9

Tanah Putih Tj.Melawan

838

6.200

599

7.637

18.611

3.002

3.933

10

Pujud

1.322

12.908

839

15.069

41.689

3.230

3.539

11

Batu Hampar

501

1.617

314

2.432

4.888

3.023

822

12

Simpang Kanan

1.585

16.909

458

18.952

55.894

3.306

6.013

13

Bangko Pusako

2.863

17.981

1.726

22.570

60.306

3.354

5.709

14

Rantau Kopar

284

1.301

66

1.651

3.939

3.028

709

15

Pekaitan

691

2.475

173

3.339

7.652

3.092

1.852

16

Tanjung Medan

1.148

18.549

416

20.113

59.504

3.208

5.292

17

Balai Jaya

2.738

7.782

306

10.826

26.618

3.420

2.815

18

Bagan Sinembah Raya

1.622

12.310

1.395

15.327

44.880

3.646

3.926

Independent Farmer's Garden

23.655

156.703

14.846

195.204

512.529

56.822

62.142

Source: BPS, 2021

 

This matter shows that fluctuation in the price of fruit palm at the farmer level influences the increase in public farmer self-help in the District Rokan Downstream from 2020 – 2022.

Impact Economy

a.   Dependency Expense Ratio

Ratio burden dependents used For count pattern development economy in the district area Rokan Downstream. The calculation ratio burden depends on the residents productive age compared with amount residents age productive in a year walk. Based on BPS data for 2023 in Table 6, it is known that the number of residents who are non- productive aged (no forced work) in the District Rokan Downstream is as many as 164,096 people. Meanwhile, the public's workforce is 318,395 people. Based on these data, calculations ratio burden dependents amounting to 51.54%. This matter means in every 100 productive residents in the district, Rokan Downstream have burden dependents, as many as 52 people productive population. Amount ratio burden high liability​ will hinder growth economy a region, cause need life will the more height and opportunity For save the more small.

b.   Income Farmer Palm

Production is the amount/amount of FFB produced by farmers in the year (Kg/ year). From the results production so farmers will gain reception Which can used For fulfil need life farmer . Reception obtained from the amount multiplication between price selling palm oil FFB Which accepted farmer with amount total production Which be measured in unit rupiah per hectare per year and average costs rupiah per area cultivated per year. Mardianis (2023) conveyed that the average total palm oil acceptance self-help in Rokan Hilir Regency is as big as IDR 11,434,710.28 per year per hectare. Meanwhile, the total average cost production issued is as big as IDR 166,888.65 per year per hectare. So that obtained average income net (profit) of IDR 9,124,416.74 per year per hectare. The assumed price of the fruit palm oil used is Rp. 1,066,-/Kg FFB.

According to research conducted by Ikhsan (2023), perception farmer to fluctuation View the FFB price from income sourced farmers​ from business coconut palm oil. The relationship that occurs between fluctuating FFB prices and income from farmers has a great influence​ . This matter indicated that's it there is a nature relationship​ positive between fluctuating FFB prices with income farmers. Fluctuations in FFB priceshappen over a number of years and cause uncertainty for income farmers. Lots of it is platform palm oil/ram found in the Regency Rokan Downstream. Own price. Buy one that doesn't The same. Sometimes farmers must selling his FFB outside​ their territory so which cause swelling cost delivery. Temporary: That income received​ by the farmer every month is Still shared Again for business capital like For maintenance (purchase fertilizers , pesticides) whose prices soar very tall. There is a correlation between the cost of fertilizer And eradication of weeds to income farmer palm independence.

Condition oil palm farmers Rokan Hilir Regency including into the category Enough prosperous And level price palm oil from farmers including category Enough OK, p This Can happen Because majority farmer palm join with Cooperative Where matter the of course capable protect farmer. The average income obtained by farmers every month is classified as low until currently, so it will be more felt if the FFB price happens. A study done by Xia et al. (2021) stated that the level of well-being of farmers is compared directly with FFB price; if FFB prices are high, the well-being of farmers will increase And if low FFB prices, the well-being of Farmers will decline.

 

CONCLUSION

Regency Rokan Downstream is one of districts in Riau Province with wide land plantation coconut palm farmer self-subsistent covering an area of 224,678 Ha and production garden coconut palm as much as 537,644 tons of CPO. The average income received​ by farmers who garden coconut palm oil in the Regency Rokan Downstream per month in One hectare Can reach IDR 2,000,000/ Ha, and if the FFB price on the platform experiences a decline, it will cause reduced income farmers as much as 10% - 30%.

Fluctuation in the price of TBS isn't a threat to farmer palm Because however fluctuation in FFB prices that occur No too influence effect of well-being of farmers. The government, as a regulator regulations, can take important points from the study. This is that setting about FFB price at level farmer No matter the main thing that is necessary done . This is Because, based on the study, fluctuation in the price of TBS isn't matter main Which influences the well-being of farmers palm oil . Influence fluctuation: The price of FFB is very small to affect well-being. Farmer palms can be made by the government To emit regulation for the well-being of farmer palms from the side other than the price of FFB producers.

 

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Copyright holder:

Indra, Oman Sukmana, Wahyudi, Yennita Fachrina  (2024)

 

First publication right:

Asian Journal of Engineering, Social and Health (AJESH)

 

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