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

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.