Abstract
Purpose This study aims to investigate the problems small-scale oil palm plantations in Indonesia’s forest areas face and the government policies addressing them. Design/methodology/approach Survey and data collection were used to determine the socioeconomic, environmental, legal and governance problems related to the development of smallholder plantations. Information was obtained from the respondents via a rapid rural appraisal approach. Findings The potential land for potential participants in the community oil palm rejuvenation programme is a forest area of 1,628,749.60 ha. Owing to its legal dimensions and unsustainable land management, the rejuvenation regulatory programme has not reached independent farmers. Research limitations/implications The use of plantation space beyond its designation hinders the government’s goal of accelerating the rejuvenation programme. The problems regarding the accumulation of forest area result in low achievement of the annual rejuvenation target in Riau Province (21%–25%). The authors present solutions to resolve land ownership conflicts and implement strategic policies to ensure the sustainable development of such plantations. Originality/value The authors introduce a conflict–resolution model for small-scale smallholder oil palm plantations to resolve the problems of forest area claims unaddressed in the Indonesian Job Creation Law. Land conflict resolution is categorised into five typologies: oil palm plantations with business permits; those without a forestry permit and subject to administrative sanctions; business activities in forest areas without forestry permits; resolving non-conformities in the progress of land or management controlled and used in forest areas prior to their designation by removing land parcels through modifying the forest area boundaries; and the settlement for farmers without cultivation registration certificates but have established plantations and whose land tenure can be proven.
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