2.7 Million Farmers Depend on Smallholder Palm Oil Plantations

Palm oil plantations are a major source of income for palm oil farmers. Based on data from the Ministry of Agriculture, the number of palm oil farmers in People's Plantations (PR) in 2019 is estimated to have reached 2.74 million households. This figure increased by 2.5% compared to the previous year, which was 2.67 million households.

Riau is the province with the most PR palm oil farmers, reaching 597,000 households (21%) of the total palm oil farmers in the country. In second place is South Sumatra with 281,000 palm oil farmers (10.24%), and in third place is Jambi with 266,000 households (9.71%).

However, a lack of information regarding access to quality seedlings, proper management techniques, and funding, has resulted in lower productivity for PR palm oil farmers compared to palm oil companies. Nationally in 2019, the estimated productivity of PR palm oil farmers reached only 3.15 million tons/ha, while the productivity of Large State-Owned Enterprises (PBN) was 3.67 million tons/ha, Large Private Companies (PBS) nationally 4.1 million tons/ha, and Foreign PBS 4.12 million tons/ha. Meanwhile, according to findings by Traction Energy Asia in West Kalimantan and Riau, the average production level of PR palm oil only reaches half the average production level of palm oil companies.