People, Palms, and Productivity: Testing Better Management Practices in Indonesian Smallholder Oil Palm Plantations

Abstract

More than 40% of the total oil palm area in Indonesia is owned and managed by smallholders. For large plantations, guidelines are available on so-called ‘best management practices’, which should give superior yields at acceptable costs when followed carefully. We tested a subset of such practices in a sample of smallholder plantations, aiming to increase yields and profitability. We implemented improved practices (weeding, pruning, harvesting, and fertiliser application) in 14 smallholder plantations of 13–15 years after planting in Jambi province (Sumatra) and in West-Kalimantan province (Kalimantan) for a duration of 3 to 3.5 years. During this period, we recorded yields, measured palm leaf parameters and analysed leaf nutrient contents. Yield recording then continued for an additional two years. In the treatment plots, the yields did not increase significantly, but the size of the bunches and the size of the palm leaves increased significantly and substantially. The tissue nutrient concentrations also increased significantly, although after three years, the potassium concentrations in the rachis were still below the critical value. Because of the absence of yield increase and the additional costs for fertiliser inputs, the net profit of implementing better management practices was negative, and ‘business as usual’ was justified financially. Some practices, such as harvesting at 10-day intervals and the weeding of circles and paths, were received positively by those farmers who could implement them autonomously, and were applied beyond the experiment. It is challenging to find and implement intensification options that are both sustainable and profitable, that have a substantial impact on yield, and that fit in the smallholders’ realities. On-farm experimentation and data collection are essential for achieving sustainable intensification in smallholder oil palm plantations.