Can smallholder’s oil palm income contribute to household expenses during replanting?

Abstract

Oil palm has increased welfare and food security for low-income families in Indonesia. In Jambi Province, the independent smallholders own most farms. However, the land area of old or damaged crops reaches 43.38% of the total area. It requires smallholders to perform replanting to avoid a decrease in productivity and income. The research objectives are: 1) describing oil palm replanting in Sungai Bahar Sub-District, Muaro Jambi Regency, 2). analyzing the Amount of smallholder’s income and 3) Predicting the contribution of smallholder’s income to household living expenditure during the period of replanting. This research was conducted by a descriptive and quantitative method. The results showed a replanting oil palm farm area of 1,96 hectares. Prior to replanting, palm oil farming income was IDR 4,229,530/month. After replanting when crops had not generated, smallholders’ income of IDR 1,239,486/month sourced from the cultivation of food crops, namely corn, chili, and peanut. If the household expenses of IDR 2,613,542 per month, then the income from the plantation of horticultural plants or food plants contributes 47.42 percent. It indicates the utilization of palm oil upright land before the crop yield becomes one of the policies considered into question as a contributor to household income.