Analyzing the Dynamics of Social, Economic, and Cultural Changes and the Role of Institutions in Oil Palm Agribusiness Development

Abstract

This research aims to reveal the dynamics of social, economic, and cultural changes in agribusiness institutions in oil palm development locations. Then reveal the role of each agribusiness institution in oil palm development locations. Using a qualitative approach to build a post-positivism approach. The research location is limited to the community (farmers) in Anggabaeri District and Besulutu District, Konawe Regency. These two research areas were chosen purposively. The database used in determining farmer groups is groups that are active and registered in the Extension Information System or SIMLUH data so 22 informants were obtained consisting of farmer group institutions, cooperative institutions, and government agencies, as well as from the Agricultural Extension Center. Specifically for farmers, the informants selected consisted of independent and plasma farmers. Data was obtained by distributing questionnaires and interviews and then analyzed descriptively. The results of the analysis show that from a social, economic, and cultural perspective, the presence of oil palm plantations brings significant changes. These changes include shifts in social stratification, interaction patterns, and improvements in health status. Apart from that, the regional economic structure is also undergoing a transformation which has an impact on increasing the income of various communities such as workers and farmers. Then there is the role of institutions, especially farmer groups, and cooperatives, in supporting and facilitating farmers' interests as a learning vehicle, production unit, and collaboration forum. Extension institutions play an important role in increasing farmers' capacity, and cooperatives contribute significantly to the provision of production facilities, transportation, and marketing of crops. An important finding is the important role of cooperatives in managing various risks associated with oil palm farming. These risks include business, financial, social, and legal engineering aspects. Cooperatives play an important role in mitigating these risks and ensuring the overall well-being and success of their members.